BLAIR LEE III, Acting Governor

1165

Article 78 — Public Service Commission Law

Section 54D

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

BY adding to

Article 78 — Public Service Commission Law

Section 54F

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 78 — Public Service Commission Law

54.

The Commission may when it deems necessary [allow any
gas or electric company to establish a sliding scale for the
automatic adjustment of charges only for the cost of
purchased or leased fuel to the extent that the cost is
determined by factors beyond the control of the company and
may allow any nongenerating electric company to establish a
sliding scale for purchase power cost adjustment. The

Commission__may allow any gas or electric company to

automatically adjust charges for any rate change approved
by the Federal Power Commission or any State or federal
agency and may allow automatic reimbursement for any State

or local tax or surcharge. No such scale shall be

effective, however, until filed with the Commission subject
to the provisions of §54D; and nothing in this section shall
be construed as derogating in any respect from the paramount

jurisdiction of the Commission over the rates__of such

companies] AND IN ACCORDANCE WITH THE REQUIREMENTS OF

SECTION 54D AND SECTION 54F OF THIS ARTICLE, PERMIT A GAS OR

ELECTRIC UTILITY TO ESTABLISH A SLIDING SCALE FOR__THE

ADJUSTMENT OF ITS FUEL COSTS, COSTS OF PURCHASED POWER, OR

COSTS OF PURCHASED GAS.

54D.

(A) Any gas or electric company UTILITY which
directly passes on to its customers any change in its fuel
costs OR, COSTS OF PURCHASED POWER OR COSTS OF PURCHASED GAS
is required each month to verify and justify the adjusted
[fuel] costs to the Commission. The Commission shall
conduct a public EVIDENTIARY hearing ("in the service area
affected] no less frequently than once every six months on
these changes. The Commission shall order a company UTILITY
to charge off and amortize, by means of a temporary decrease
of rates any charges it finds were unjustified [by
determining that the company has improperly calculated the