(C) (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, INCLUDING
SUBSECTION (D) OF THIS SECTION, THE COMMISSION MAY REGULATE THE
REGULATED SERVICES OF AN ELECTRIC COMPANY THROUGH ALTERNATIVE FORMS
OF REGULATION.

(2) THE COMMISSION MAY ADOPT AN ALTERNATIVE FORM OF
REGULATION UNDER THIS SECTION IF THE COMMISSION FINDS, AFTER NOTICE AND
HEARING, THAT THE ALTERNATIVE FORM OF REGULATION;

(1) PROTECTS CONSUMERS;

(II) ENSURES THE QUALITY, AVAILABILITY, AND RELIABILITY OF
REGULATED ELECTRIC SERVICES; AND

(III) IS IN THE INTEREST OF THE PUBLIC, INCLUDING
SHAREHOLDERS OF THE ELECTRIC COMPANY.

(3) ALTERNATIVE FORMS OF REGULATION MAY INCLUDE:

(I) PRICE REGULATION, INCLUDING PRICE FREEZES OR CAPS;

(II) REVENUE REGULATION;

(III) RANGES OF AUTHORIZED RETURN;

(IV) RATE OF RETURN;

(V) CATEGORIES OF SERVICES; OR

(VI) PRICE INDEXING

(D) (1) THE COMMISSION SHALL FREEZE OR CAP, FOR 4 YEARS AFTER
INITIAL IMPLEMENTATION OF CUSTOMER CHOICE IN THE ELECTRIC COMPANY'S
DISTRIBUTION TERRITORY, THE TOTAL OF THE RATES OF AN ELECTRIC COMPANY
CHARGED TO A RETAIL ELECTRIC CUSTOMER AT THE ACTUAL LEVEL OF THE RATES
IN EFFECT OR AUTHORIZED BY THE COMMISSION ON THE DATE IMMEDIATELY
PRECEDING THE INITIAL IMPLEMENTATION OF CUSTOMER CHOICE IN THE
ELECTRIC COMPANY'S DISTRIBUTION TERRITORY.

(2) (I) THE CAP REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION DOES NOT APPLY TO THE RECOVERY OF COSTS ADDED AFTER JANUARY
1, 3000, IN ACCORDANCE WITH § 7-512(C) OF THIS SUBTITLE.

(II) THE CAP REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION APPLIES TO THE RECOVERY OF;

1. ANY TRANSITION COSTS UNDER § 7-513 OF THIS

SUBTITLE; AND

2. ANY COSTS INCLUDED IN RATES ON JANUARY 1, 2000, IN
ACCORDANCE WITH § 7-513(C) OF THIS SUBTITLE.