1. HOLD A LICENSE ISSUED BY THE COMMISSION, AS
PROVIDED UNDER § 7-507 OF THIS SUBTITLE;

2. POST A BOND OR OTHER SIMILAR INSTRUMENT IN AN
AMOUNT EQUAL TO 15% OF THE BOND REQUIRED UNDER § 7-507 OF THIS SUBTITLE;
AND

3. HAVE A RESIDENT AGENT IN THE STATE.

(II) A LOCAL JURISDICTION MAY NOT REQUIRE AN APPLICANT OR
LICENSEE TO PAY A FEE OR OTHER CHARGE FOR THE LOCAL LICENSE.

(D) (1) A LOCAL JURISDICTION MAY REVOKE OR SUSPEND THE LOCAL
LICENSE IF THE LICENSEE FAILS, WITHIN 15 DAYS OF THE DUE DATE ESTABLISHED
BY THE LOCAL JURISDICTION, TO PAY OR REMIT ALL OF THE APPLICABLE LOCAL
ENERGY TAXES ON SERVICES.

(2) A LOCAL JURISDICTION MAY REINSTATE THE LICENSE AFTER
PAYMENT OF ALL LOCAL ENERGY TAXES DUE.

(3) A LOCAL JURISDICTION MAY CHOOSE NOT TO REINSTATE A LICENSE
THAT HAS BEEN REVOKED OR SUSPENDED 3 TIMES IN A 12-MONTH PERIOD.

(4) A LOCAL JURISDICTION SHALL REPORT ANY REVOCATION OR
SUSPENSION OF A LICENSE TO THE COMMISSION.

(E) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE AN ORDER TO
ESTABLISH PROCEDURES FOR THE ASSUMPTION OF BILLING RESPONSIBILITIES BY
THE ELECTRIC COMPANY THAT DISTRIBUTES ELECTRICITY IN THE RELEVANT
SERVICE TERRITORY IF A LOCAL LICENSE IS REVOKED OR SUSPENDED.

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 BYLAW OR
ORDERED BY THE COMMISSION.

(2) (I) 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