PARRIS N. GLENDENING, Governor                                 Ch. 141

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.

(E) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A) OF THIS
SECTION OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE COMMISSION
MAY REGULATE A TELEPHONE COMPANY BY MEANS OF AN ALTERNATIVE FORM
FORMS OF REGULATION, WHICH MAY INCLUDE, BUT ARE NOT LIMITED TO, THE USE
OF PRICE REGULATION, REVENUE REGULATION, RANGES OF AUTHORIZED
RETURN. RATE OF RETURN, CATEGORIES OF SERVICES. OR PRICE INDEXING, IF IT
FINDS, AFTER NOTICE AND HEARING, THAT THE ALTERNATIVE FORM OF
REGULATION PROTECTS CONSUMERS BY. AT A MINIMUM, PRODUCING AFFORDABLE
AND REASONABLY PRICED BASIC LOCAL EXCHANGE SERVICE, AS DEFINED BY THE
COMMISSION, AND BY ENSURING THE QUALITY, AVAILABILITY, AND RELIABILITY
OF TELECOMMUNICATIONS SERVICES THROUGHOUT THE STATE; ENCOURAGES THE
DEVELOPMENT OF COMPETITION, PROTECTS CONSUMERS; AND IS IN THE PUBLIC
INTEREST.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1995.

Approved May 9, 1995.

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