(II) IN ACHIEVING THE RATE REDUCTION REQUIRED UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COMMISSION SHALL CONSIDER:

1. THE EXPIRATION OF ANY SURCHARGE:

2. CHANGES IN THE ELECTRIC COMPANY'S TAX LIABILITY;

3. COST OF SERVICE DETERMINATIONS ORDERED BY THE

COMMISSION;

4. NET TRANSITION COSTS OR BENEFITS;

5. THE EFFECT ON THE COMPETITIVE ELECTRICITY SUPPLY

MARKET;

6. WHETHER THE RATE REDUCTION AND RATE CAP WILL
UNDULY IMPAIR THE ELECTRIC COMPANY'S FINANCIAL CONDITION;

7. THE COSTS ASSOCIATED WITH THE UNIVERSAL SERVICE

PROGRAM; AND

8. THE INTERESTS OF THE PUBLIC, INCLUDING
SHAREHOLDERS OF THE ELECTRIC COMPANY.

(III) THE COMMISSION MAY, WITHIN THE PARAMETERS PROVIDED
IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, INCREASE OR DECREASE THE ACTUAL
RATE REDUCTION REQUIRED.

(IV) THE COMMISSION MAY ALLOW THE RECOVERY OF ANY
EXTRAORDINARY COSTS BASED ON THE CIRCUMSTANCES OF AN INDIVIDUAL
ELECTRIC COMPANY IF THE COMMISSION DETERMINES THAT THE ACTION IS
NECESSARY AND IN THE PUBLIC INTEREST

(V) IN DETERMINING THE RATE REDUCTION REQUIRED UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COMMISSION MAY NOT INCREASE
RATES FOR NONRESIDENTIAL CUSTOMERS.

(5) THE REQUIREMENTS OF PARAGRAPH (4) OF THIS SUBSECTION DO
NOT APPLY TO AN ELECTRIC COMPANY IF THE COMMISSION APPROVES OR HAS IN
EFFECT A SETTLEMENT THAT THE COMMISSION DETERMINES IS EQUALLY
PROTECTIVE OF RATEPAYERS.

(E) (1) THE COMMISSION SHALL ASSESS THE AMOUNT OF ELECTRICITY
GENERATED IN MARYLAND AS WELL AS THE AMOUNT OF ELECTRICITY IMPORTED
FROM OTHER STATES IN ORDER TO DETERMINE WHETHER A SUFFICIENT SUPPLY
OF ELECTRICITY IS AVAILABLE TO CUSTOMERS IN THE STATE.

(2) ON OR BEFORE JANUARY 1 IN 2001, 2003, 2005, AND 2007, THE
COMMISSION SHALL REPORT TO THE GENERAL ASSEMBLY IN ACCORDANCE WITH §
2-1246 OF THE STATE GOVERNMENT ARTICLE ON ITS ASSESSMENT UNDER THIS
SUBSECTION AND ANY RECOMMENDATIONS FOR LEGISLATION WHICH MAY BE
NEEDED TO ENSURE AN ADEQUATE SUPPLY OF ELECTRICITY FOR CUSTOMERS IN
THE STATE.