7-500.

(A) (1) ON AND AFTER THE INITIAL IMPLEMENTATION DATE, THE
GENERATION, SUPPLY, AND SALE OF ELECTRICITY, INCLUDING ALL RELATED
FACILITIES AND ASSETS, MAY NOT BE REGULATED AS AN ELECTRIC COMPANY
SERVICE OR FUNCTION EXCEPT TO;

(I) ESTABLISH THE PRICE FOR STANDARD OFFER SERVICE UNDER
§ 7-510(C) OF THIS SUBTITLE; AND

(II) REVIEW AND APPROVE TRANSFERS OF GENERATION ASSETS
UNDER § 7-508 OF THIS SUBTITLE.

(2) THIS SUBSECTION DOES NOT APPLY TO:

(I) REGULATION OF AN ELECTRICITY SUPPLIER UNDER § 7-507 OF
THIS SUBTITLE; OR

(II) AS PART OF A SETTLEMENT APPROVED OR ORDER ISSUED BY
THE COMMISSION THE COSTS OF NUCLEAR GENERATION FACILITIES OR PURCHASED
POWER CONTRACTS WHICH REMAIN REGULATED OR ARE RECOVERED THROUGH
THE DISTRIBUTION FUNCTION.

(B) (1) EXCEPT FOR AN ELECTRIC COMPANY WHOSE RETAIL PEAK LOAD IN
THE STATE ON JANUARY 1, 1999, WAS LESS THAN 1,000 MEGAWATTS, THIS SECTION
DOES NOT APPLY TO AN ELECTRIC COMPANY UNTIL THE ELECTRIC COMPANY:

(1) (I) TRANSFERS GENERATION FACILITIES AND GENERATION
ASSETS TO AN AFFILIATE OF THE ELECTRIC COMPANY, AND THE AFFILIATE
OPERATES THE FACILITIES AND ASSETS; OR

(2) (II) SELLS THE GENERATION FACILITIES AND GENERATION ASSETS
TO A NONAFFILIATE.

(2) FOR AN ELECTRIC COMPANY WHOSE RETAIL PEAK LOAD IN THE
STATE ON JANUARY 1, 1000 WAS LESS THAN 1,000 MEGAWATTS, THE COMMISSION
MAY REVIEW THE CORPORATE STRUCTURE OF THE ELECTRIC COMPANY IN ORDER
TO ENSURE THE STRUCTURE DOES NOT RESULT IN AN UNDUE ADVERSE EFFECT ON
THE PROPER FUNCTION OF A COMPETITIVE ELECTRICITY SUPPLY MARKET.

(3) THE EXCEPTION PROVIDED IN THIS SUBSECTION, AS IT APPLIES TO
INVESTOR OWNED UTILITIES, SHALL EXPIRE AND BE OF NO FURTHER FORCE AND
EFFECT ON JANUARY 1, 2001.

(C) THE EXCEPTIONS IN SUBSECTION (A)(1) OF THIS SECTION AS TO ANY
ELECTRIC COMPANY SHALL REMAIN IN EFFECT UNTIL THE LATER OF THE DATE
WHEN:

(1) ALL CUSTOMERS OF THAT ELECTRIC COMPANY ARE ELIGIBLE FOR
CUSTOMER CHOICE UNDER § 7-510 OF THIS SUBTITLE; AND