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VETOES

For the reasons set forth in my veto message regarding
Senate Bill 1036, I have decided also to veto Senate Bill
1037.

Sincerely,
Harry Hughes
Governor

Senate Bill No. 1052
AN ACT concerning

Electric Companies - Fuel Rate Costs

FOR the purpose of providing that the actual cost of fuel of

an electric company shall be determined through

testimony produced at monthly public hearings held by

the Public Service Commission. FOR the purpose of
requiring an electric company to have as part of its
rates to all customers a separately stated^ zero—based,
fuel rate wherein it charges for its actual costs of
fuel computed on a kilowatt—hour basis which shall be
printed separately on the face of the bill.

May 29, 1979
Honorable James Clark, Jr.
President of the Senate

State House

Annapolis, Maryland 21404

Dear Mr. President:

In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed Senate Bill 1052.

The intent of the original legislation was to impose
stricter standards on fuel-rate adjustments by electric
companies. However, during the legislative process one
amendment to the bill substituted "shall" for "may" thereby
accomplishing the undesirable result of requiring that an
electric company impose a fuel—rate adjustment on its
customers, even if the company has no wish to impose the
adjustment. Thus, the approval of this measure would insure
the continuation of a practice which allows added costs to
be passed on to consumers.

Under our present system fuel—rate adjustments can be
applied to customer's bills only with the consent of the