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

(B) EXCEPT FOR AN ELECTRIC COMPANY WHOSE RETAIL PEAK LOAD IN THE
STATE ON JANUARY 1, 1999, WAS LESS THAN 1,000 MEGAWATTS (1) SUBJECT TO
PARAGRAPH (2) OF THIS SUBSECTION, 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 NONAFFILLIATE.

(2) (1) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1) OF
THIS SUBSECTION, THIS SECTION APPLIES TO AN INVESTOR OWNED ELECTRIC
COMPANY THAT DOES NOT TRANSFER ITS GENERATION FACILITIES AND
GENERATION ASSETS TO AN AFFILIATE OR SELL ITS GENERATION FACILITIES AND
GENERATION ASSETS TO A NONAFFILIATE IF, ON JANUARY 1, 1999, THE RETAIL PEAK
LOAD OF THE INVESTOR OWNED ELECTRIC COMPANY IN THE STATE WAS LESS THAN
1,000 MEGAWATTS.

(II) AN INVESTOR OWNED ELECTRIC COMPANY TO WHICH THIS
SECTION APPLIES THROUGH SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL, BY
JANUARY 1, 2001.

1. TRANSFER ITS GENERATION FACILITIES AND
GENERATION ASSETS TO AN AFFILIATE OF THE INVESTOR OWNED ELECTRIC
COMPANY THAT OPERATES THE FACILITIES AND ASSETS; OR

2. SELL THE GENERATION FACILITIES AND GENERATION
ASSETS TO A NONAFFILIATE.

(G) THE EXCEPTIONS IN SUBSECTION (A)(3) (A)(1) OF THIS SECTION AS TO ANY
ELECTRIC COMPANY SHALL REMAIN IN EFFECT UNTIL THE LATER OF THE DATE
WHEN:

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

(2) THE DATE WHEN THE AMOUNT OF TRANSITION COSTS ARISING
FROM THE GENERATION THAT IS DEREGULATED HAS BEEN FINALLY DETERMINED
BY THE COMMISSION UNDER § 7-513(A) THROUGH (C) OF THIS SUBTITLE; OR

(3) IF, UNDER § 7-510(C)(3)(II) OF THIS SUBTITLE, THE COMMISSION
EXTENDS THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE, THE DATE ON
WHICH THE COMMISSION TERMINATES THAT OBLIGATION.