[(2)] (3) Without prior authorization of the Commission, a public service
company may not take, hold, or acquire any part of the capital stock of a public service
company that is:

(i) incorporated in Maryland; and,

(ii) of the same class as the acquiring .company.

[(3)] (4) (i) Except as. provided in subparagraph (ii) of this paragraph,
a stock corporation may not take, hold, or acquire more than 10% of the total capital
stock of a public service company incorporated in Maryland unless:

1. the stock is acquired as collateral security; and

2. the Commission approves the acquisition.

(ii) The Commission may authorize a public service company of the
same class to take, hold, or acquire more than 10% of the total capital stock of a public
service company incorporated in Maryland.

[(4)] (5) A public service company may not be a party to a violation of
this subsection.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an
emergency measure, is necessary for the immediate preservation of the public health
and safety, has been passed by a yea and nay vote supported by three-fifths of all the
members elected to each of the two Houses of the General Assembly, and shall take
effect from the date it is enacted.

Approved February 3, 1999.

CHAPTER 2
(Senate Bill 65)

AN ACT concerning

Public Service Companies - Holding Companies

FOR the purpose of exempting the formation of certain holding companies by public
service companies in a certain manner from certain restrictions on the holding
and acquisition of stock of and by public service companies; and making this Act
an emergency measure.

BY repealing and reenacting, with amendments,
Article - Public Utility Companies
Section 6-101(c)
Annotated Code of Maryland
(1998 Volume)