PARRIS N. GLENDENING, Governor                             Ch. 140

CHAPTER 140
(Senate Bill 64)

AN ACT concerning

Public Service Commission Law - Telephone Companies - Alternative Forms of

Regulation

FOR the purpose of authorizing the Public Service Commission to regulate a telephone
company by means of an alternative form of regulation, subject to certain
conditions.

BY repealing and reenacting, with amendments,
Article 78 - Public Service Commission Law
Section 69

Annotated Code of Maryland
(1991 Replacement Volume and 1994 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

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
common carriers, 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 for common
carriers, and classifications, regulations, and practices relating thereto, the Commission
shall give due consideration, among other factors, to the inherent advantages of
transportation by such carriers; to the need, in the public interest, of adequate and
efficient transportation services by such carriers at the lowest cost consistent with the
furnishing of such service; and to the need of revenues sufficient to enable such carrier,
under honest, economical, and efficient management, to provide such service, and upon
consideration of such matters shall establish the need for proper revenue by
determination of a fair and equitable operating ratio, which is the relationship of carrier
expenses to carrier operating revenues.

(c)     A public service company may not charge off against its rate payers expenses
for lobbying.

(d)     In the exercise of its power to prescribe just and reasonable rates, the
Commission may not discourage the use of employee stock ownership plans by public
service companies, by denying them the full benefits of investment tax credits provided in
connection with these plans by the federal Internal Revenue Code.

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