(1) require each gas company and electric company to establish any
program or service that the Commission deems appropriate and cost-effective to
encourage and promote the efficient use and conservation of energy; [and]

(2) adopt rate making policies that provide cost-recovery and, in
appropriate circumstances, reasonable financial incentives for gas companies and
electric companies to establish programs and services that encourage and promote the
efficient use and conservation of energy; AND

(3) ASSURE THAT ADOPTION OF ELECTRIC CUSTOMER CHOICE UNDER
SUBTITLE 5 OF THIS TITLE DOES NOT ADVERSELY IMPACT THE CONTINUATION OF
COST EFFECTIVE ENERGY CONSERVATION AND EFFICIENCY PROGRAMS.

SUBTITLE 5. ELECTRIC INDUSTRY RESTRUCTURING.

PART I. GENERAL PROVISIONS.

7-501.

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B) "AFFILIATE" MEANS A PERSON THAT DIRECTLY OR INDIRECTLY, OR
THROUGH ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY, OR IS
UNDER COMMON CONTROL WITH, OR HAS, DIRECTLY OR INDIRECTLY, ANY
ECONOMIC INTEREST IN ANOTHER PERSON.

(C) (1) "ASSIGNEE" MEANS A PERSON TO WHOM AN ELECTRIC COMPANY
ASSIGNS OR TRANSFERS ALL OR A PORTION OF ITS INTEREST IN INTANGIBLE
TRANSITION PROPERTY, OTHER THAN AS SECURITY.

(2) "ASSIGNEE" INCLUDES A PERSON TO WHOM ALL OR A PORTION OF
THE INTEREST IS SUBSEQUENTLY ASSIGNED OR TRANSFERRED.

(D) "COMPETITIVE TRANSITION CHARGE" MEANS A RATE, CHARGE, CREDIT,
OR OTHER APPROPRIATE MECHANISM AUTHORIZED TO BE IMPOSED FOR THE
RECOVERY OF TRANSITION COSTS OR THE RETURN OF A NET TRANSITION BENEFIT
AS DETERMINED BY THE COMMISSION UNDER § 7-513 OF THIS SUBTITLE.

(E) "CONSUMER" AND "CUSTOMER" EACH MEANS A RETAIL ELECTRIC
CUSTOMER.

(F) "CUSTOMER CHOICE" MEANS THE RIGHT OF ELECTRICITY SUPPLIERS AND
CUSTOMERS TO UTILIZE AND INTERCONNECT WITH THE ELECTRIC DISTRIBUTION
SYSTEM ON A NONDISCRIMINATORY BASIS AT RATES, TERMS, AND CONDITIONS OF
SERVICE COMPARABLE TO THE ELECTRIC COMPANY'S OWN USE OF THE SYSTEM TO
DISTRIBUTE ELECTRICITY FROM A ELECTRICITY SUPPLIER TO A CUSTOMER, UNDER
WHICH A CUSTOMER HAS THE OPPORTUNITY TO PURCHASE ELECTRICITY FROM THE
CUSTOMER'S CHOICE OF LICENSED ELECTRICITY SUPPLIERS.