HARRY HUGHES, Governor

2993

Public Service Companies - Employee Stock
Ownership Plans

FOR the purpose of prohibiting the Public Service Commission
from discouraging the use of employee stock ownership
plans by public service companies.

BY repealing and reenacting, with amendments,

Article 78 - Public Service Commission Law

Section 69

Annotated Code of Maryland

(1975 Replacement Volume and 1979 Supplement)

Preamble

WHEREAS, The General Assembly of Maryland recognizes
that increased use of employee stock ownership plans
substantially can increase the income and financial security
of citizens of Maryland, assure them greater control of
their economic futures, improve productivity, improve
labor-management relations, contribute to the national
effort to combat inflation, strengthen the free enterprise
system, and put Maryland in the forefront of contemporary
economic trends; and

WHEREAS, The General Assembly of Maryland recognizes
that public utility regulatory agencies in certain other
states have taken actions detrimental to the use of employee
stock ownership plans by public utility companies, by
denying such companies the full benefits of investment tax
credits provided by the Internal Revenue Code; now,
therefore,

    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be repealed, amended, or enacted to read as follows: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
69.

(a)   "Just and reasonable rates" means rates which are
not in violation of any of the provisions of this article,
which fully consider and are consistent with the public
good, and which will result in an operating income to the
public service company, except carriers of inflammables,
yielding, after reasonable deduction for depreciation and
other necessary and proper expenses and reserves, a
reasonable return upon the fair value of the company's
property used and useful in rendering service to the public.

(b)  In the exercise of its power to prescribe just and
reasonable rates, and charges for the transportation
carriers of flammables by motor vehicle, and
classifications, regulations, and practices relating
thereto, the Commission shall give due consideration, among