1. EXCEPT AS PROVIDED IN ITEM (II)2 AND 3 OF THIS
PARAGRAPH, GROSS CHARGES FOR THE TRANSMISSION, DISTRIBUTION, OR
DELIVERY OF ELECTRICITY OR NATURAL GAS OR FOR DISTRIBUTION OR
DELIVERY-RELATED SERVICES; AND

2. COMPETITIVE TRANSITION CHARGES, INTANGIBLE
TRANSITION CHARGES, AND ANY OTHER SURCHARGE OR OTHER COST-RECOVERY
MECHANISM AUTHORIZED FOR RECOVERY OF TRANSITION COSTS OR THE COSTS OF
DEMAND SIDE MANAGEMENT OR OTHER ENERGY CONSERVATION PROGRAMS,
UNIVERSAL SERVICE OR OTHER PUBLIC PURPOSE PROGRAMS, OR CONSUMER
EDUCATION PROGRAMS; AND

(II) "GROSS RECEIPTS" DOES NOT INCLUDE:

1. GROSS CHARGES FROM THE SALE OF ELECTRICITY OR

NATURAL GAS,

2. GROSS CHARGES FROM THE TRANSMISSION,
DISTRIBUTION, OR DELIVERY OF ELECTRICITY OR NATURAL GAS TO ANOTHER
PUBLIC SERVICE COMPANY SUBJECT TO THE TAX IMPOSED. UNDER § 8-402 OF THIS
SUBTITLE IF THE BUYER INTENDS TO RESELL THE ELECTRICITY OR NATURAL GAS:
OR

3. GROSS CHARGES FROM AN INTERSTATE TRANSMISSION
NETWORK OR FROM THE TRANSMISSION, DISTRIBUTION, OR DELIVERY OF
ELECTRICITY OR NATURAL GAS TO A CUSTOMER LOCATED IN ANOTHER STATE.

[(b-1)] (D) "Long distance telecommunications service" means
telecommunications service for a telecommunication that does not originate and
terminate in the same local calling area.

(E) "PRODUCTION ACTIVITY' HAS THE MEANING STATED IN § 11-101 OF THIS
ARTICLE.

[(c)] (F) [(1)] "Public service company means a person:

(1) engaged in [an electric, gas, oil pipeline, telegraph, or] A telephone
business in the State; OR

(2) ENGAGED IN THE TRANSMISSION, DISTRIBUTION, OR DELIVERY OF
ELECTRICITY OR NATURAL GAS IN THE STATE.

[(2) "Public service company" does not include:

(i) a county;

(ii) a municipal corporation; or

(iii) a nonprofit electric cooperative.]

8-402.

(A) A franchise tax, measured by gross receipts, is imposed, for each calendar
year, on each public service company [doing]: