674                                               LAWS OF MARYLAND                                        Ch. 220

(1980 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 78 - Public Service Commission Law

2.

(a) The following terms, and such variants thereof as may
be due to requirements of grammar and syntax, when used in this
article, shall be construed, unless the context clearly otherwise
requires, in accordance with the following definitions:

(00) "SMALL RURAL ELECTRIC COOPERATIVE" MEANS AN ELECTRIC
COMPANY THAT:

(1)   IS OWNED AND CONTROLLED EXCLUSIVELY BY THE
CONSUMERS WHOM IT SERVES;

(2)  CONDUCTS ITS BUSINESS ON A NONPROFIT BASIS; AND

(3)   SUPPLIES ELECTRICITY TO LESS THAN 1,000 ELECTRIC
METERS IN MARYLAND.

54D.

(a) [Any] EXCEPT FOR A SMALL RURAL ELECTRIC COOPERATIVE,
ANY A steam heating, gas, or electric utility which directly
passes on to its customers any change in its fuel costs, costs of
purchased power, or costs of purchased gas is required each month
to verify and justify the adjusted costs to the Commission. The
Commission shall conduct a public evidentiary hearing no less
frequently than once every six months on these changes. The
Commission shall order a utility to charge off and amortize, by
means of a temporary decrease of rates any charges it finds were
unjustified upon the failure of the company to show that its
charges were based solely on increased fuel purchased power or
purchased gas costs or upon the failure of the company to follow
competitive practices in the procurement and purchasing of said
fuel, purchased power, or purchased gas or upon a showing that
the company was unreasonable in its fuel procurement and
purchasing practices.

68.

(a) The Commission shall have the power to determine just
and reasonable rates of public service companies, EXCEPT SMALL
RURAL ELECTRIC COOPERATIVES, whether as maximum, minimum or
maximum and minimum, respectively. The rates so determined shall
be fixed by order to be served upon each public service company
affected thereby. THIS SUBSECTION DOES NOT APPLY TO SMALL RURAL
ELECTRIC COOPERATIVES.