Ch. 792                                          LAWS OF MARYLAND

DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION UNDER THE
PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article - Tax - General

8-406.

(A)  A public service company may claim a credit against the
public service company franchise tax equal to the estimated tax
paid under § 8-405(b) of this subtitle.

(B)  A PUBLIC SERVICE COMPANY, INCLUDING ANY
MULTIJURISDICTIONAL PUBLIC SERVICE COMPANY, MAY CLAIM A CREDIT
AGAINST THE PUBLIC SERVICE COMPANY FRANCHISE TAX IN THE AMOUNT OF
$3 FOR EACH TON OF MARYLAND-MINED COAL THAT THE PUBLIC SERVICE
COMPANY PURCHASED IN THE CALENDAR YEAR IN EXCESS OF THE NUMBER OF
TONS OF MARYLAND MINED COAL THAT THE PUBLIC SERVICE COMPANY
PURCHASED IN 1986. THIS CREDIT SHALL REDUCE THE COST OF COAL FOR
THE PURPOSE OF FUEL RATE ADJUSTMENTS.-

(C) A PUBLIC SERVICE COMPANY ELIGIBLE FOR A CREDIT UNDER
SUBSECTION (B) 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 (B) 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 COMPANY, INCLUDING A
MULTIJURISDICTIONAL PUBLIC SERVICE COMPANY, FILES A STATEMENT OF

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