7-512.

(A) THIS SECTION AND § 7-513 OF THIS SUBTITLE APPLY TO AN ENTITY THAT
WAS REGULATED AS AN ELECTRIC COMPANY ON JUNE 30, 1999, WHETHER OR NOT
THE ENTITY OR ANY OF ITS BUSINESSES, SERVICES, OR ASSETS CONTINUES TO BE
REGULATED UNDER THIS ARTICLE AFTER THAT DATE.

(B) AN ELECTRIC COMPANY MAY RECOVER COSTS UNDER THIS SECTION TO
THE EXTENT THAT THE COMMISSION FINDS COSTS TO BE JUST AND REASONABLE.

(C) (1) AN ELECTRIC COMPANY SHALL BE PROVIDED A FAIR OPPORTUNITY
TO RECOVER FULLY ALL COSTS THAT HAVE BEEN OR WILL BE INCURRED BY THE
ELECTRIC COMPANY UNDER PUBLIC PURPOSE PROGRAMS ESTABLISHED BY LAW OR
ORDERED BY THE COMMISSION.

(2) (1) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION.
THE COSTS SUBJECT TO THIS SUBSECTION SHALL BE FUNDED BY A SURCHARGE OR
OTHER COST RECOVERY MECHANISM COLLECTED ON A STATEWIDE BASIS THAT:

1. FULLY RECOVERS FROM CUSTOMERS THE COSTS OF THE
PLANS AND PROGRAMS; AND

2. SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH,
WITH RESPECT TO ANY OF THESE COSTS NOT INCLUDED IN RATES ON JANUARY 1,
2000, IS NOT SUBJECT TO ANY OTHERWISE APPLICABLE CAP.

(II) THE RECOVERY BY AN ELECTRIC COMPANY OF COSTS FOR A
UNIVERSAL SERVICE PROGRAM IS SUBJECT TO ANY APPLICABLE CAP REGARDLESS
OF WHEN THE COSTS ARE INCLUDED IN RATES.

(3) DURING THE FISCAL YEAR ENDING JUNE 30, 2000, AN ELECTRIC
COMPANY MAY NOT, UNDER PARAGRAPH (2) OF THIS SUBSECTION, RECOVER COSTS
OF A CONSUMER EDUCATION PROGRAM ESTABLISHED BY LAW, REGULATION, OR
ORDER

7-512.1.

(A) (1) THE COMMISSION SHALL ESTABLISH A UNIVERSAL SERVICE
PROGRAM TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW
150% OF THE FEDERAL POVERTY LEVEL.

(2) THE DEPARTMENT OF HUMAN RESOURCES SHALL BE RESPONSIBLE
FOR ADMINISTERING THE UNIVERSAL SERVICE PROGRAM THROUGH THE
MARYLAND ENERGY ASSISTANCE PROGRAM.

(3) THE DEPARTMENT OF HUMAN RESOURCES MAY, WITH INPUT FROM
A PANEL OR ROUNDTABLE OF INTERESTED PARTIES, CONTRACT WITH A FOR-PROFIT
OR A NONPROFIT MARYLAND CORPORATION EXISTING AS OF JULY 1, 1999 TO ASSIST
IN ADMINISTERING THE UNIVERSAL SERVICE PROGRAM.

(4) THE COMMISSION SHALL HAVE OVERSIGHT RESPONSIBILITY FOR
THE UNIVERSAL SERVICE PROGRAM.