WILLIAM DONALD SCHAEFER, Governor Ch. 79 2

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article - Tax - General

8-405.

(D) IN DETERMINING THE TAX UNDER THIS SECTION, THE
DEPARTMENT SHALL ALLOW A CREDIT IN THE AMOUNT OF $3 FOR EACH TON
OF MARYLAND-MINED COAL THAT THE PUBLIC SERVICE COMPANY, INCLUDING
ANY MULTIJURISDICTIONAL PUBLIC SERVICE COMPANY, PURCHASED IN THE
CALENDAR YEAR IN EXCESS OF THE NUMBER OF TONS OF MARYLAND MINED
COAL THAT THE COMPANY PURCHASED IN 1987 1986. THIS CREDIT SHALL
REDUCE THE COST OF COAL FOR THE PURPOSE OF FUEL RATE ADJUSTMENTS.

(E) A PUBLIC SERVICE COMPANY ELIGIBLE FOR A CREDIT UNDER
SUBSECTION (D) OF THIS SECTION SHALL BE ELIGIBLE TO RECEIVE THAT
CREDIT FOR ENERGY:

(1) THAT WAS PURCHASED FROM A COGENERATOR THAT IS NOT
ELIGIBLE FOR THE CREDIT UNDER SUBSECTION (D) OF THIS SECTION;

(2) THAT WAS PRODUCED BY MARYLAND MINED COAL; AND

(3) IF THE PUBLIC SERVICE COMPANY FILES AN OATH,
PURSUANT TO § 1-203 OF THIS ARTICLE, THAT STATES THE EXACT AMOUNT
OF MARYLAND MINED COAL USED TO PRODUCE THE ENERGY THAT WAS
PURCHASED FROM THE COGENERATOR:

(1) IN THE CALENDAR YEAR IN EXCESS OF THE NUMBER OF
TONS OF MARYLAND-MINED COAL THAT THE PUBLIC SERVICE COMPANY
PURCHASED IN 1986; OR----------------------------------------------

(2) IN THE FORM OF ENERGY:

(I)   FROM A COGENERATOR THAT IS NOT ELIGIBLE FOR
THE CREDIT UNDER PARAGRAPH (1) OF THIS SUBSECTION;----------------

(II)   THAT WAS PRODUCED By MARYLAND-MINED COAL
THAT THE COGENERATOR PURCHASED IN THE CALENDAR YEAR IN EXCESS OF
THE AMOUNT OF MARYLAND-MINED COAL THAT THE COGENERATOR PURCHASED
IN 1986 AND FOR WHICH THE PUBLIC SERVICE COMPANY, INCLUDING A
MULTIJURISDICTIONAL PUBLIC SERVICE COMPANY, FILES A STATEMENT OF
OATH FROM THE COGENERATOR THAT CERTIFIES THE INFORMATION
SUBSTANTIATING THE CREDIT, AS REQUIRED BY THE DEPARTMENT; AND----

(III) IF THE PUBLIC SERVICE COMPANY, INCLUDING
A MULTIJURISDICTIONAL PUBLIC SERVICE COMPANY, PURCHASED AT LEAST
AS MANY TONS OF MARYLAND-MINED COAL AS IN 1986.-------------------

(F) (E) IN THIS SECTION, "COGENERATOR" MEANS A COGENERATOR

OR QUALIFYING COGENERATOR OR QUALIFYING SMALL POWER PRODUCER AS

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