(II) 1. IF THE COMMISSION FINDS THAT THE ELECTRICITY
SUPPLY MARKET IS NOT COMPETITIVE OR THAT NO ACCEPTABLE COMPETITIVE
PROPOSAL HAS BEEN RECEIVED TO SUPPLY ELECTRICITY TO THOSE CUSTOMERS
DESCRIBED UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE COMMISSION MAY
EXTEND THE OBLIGATION TO PROVIDE STANDARD OFFER SERVICE TO RESIDENTIAL
AND SMALL COMMERCIAL CUSTOMERS UNTIL JULY 1, 2004, AT THE LATEST, AT A
RATE DETERMINED UNDER § 7-505(C) OF THIS SUBTITLE AT A MARKET PRICE THAT
PERMITS RECOVERY OF THE VERIFIABLE PRUDENTLY INCURRED COSTS TO
PROCURE OR PRODUCE THE ELECTRICITY PLUS A REASONABLE RETURN.

2. THE COMMISSION SHALL REEXAMINE THE FINDING
MADE UNDER THIS SUBPARAGRAPH AT LEAST ANNUALLY.

(4) ON OR BEFORE JULY 1, 2001, THE COMMISSION SHALL ADOPT
REGULATIONS OR ISSUE ORDERS TO ESTABLISH PROCEDURES FOR THE
COMPETITIVE SELECTION OF ELECTRICITY SUPPLIERS, INCLUDING AN AFFILIATE
OF AN ELECTRIC COMPANY, TO PROVIDE STANDARD OFFER SERVICE TO CUSTOMERS
OF ELECTRIC COMPANIES UNDER PARAGRAPH (2) OF THIS SUBSECTION. EXCEPT FOR
CUSTOMERS OF ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC UTILITIES.
UNLESS DELAYED BY THE COMMISSION, THE COMPETITIVE SELECTION SHALL TAKE
EFFECT NO LATER THAN JULY 1, 2003.

(5) AN ELECTRIC COMPANY MAY PROCURE THE ELECTRICITY NEEDED
TO MEET ITS STANDARD OFFER SERVICE ELECTRICITY SUPPLY OBLIGATION FROM
ANY ELECTRICITY SUPPLIER INCLUDING AN AFFILIATE OF THE ELECTRIC COMPANY

(D) NOTWITHSTANDING THE DATES SET FORTH IN THIS SECTION OR ANY
OTHER LAW, CUSTOMER CHOICE MAY NOT COMMENCE UNTIL LEGISLATION IS
ENACTED TO RESTRUCTURE MARYLAND TAXES TO ADDRESS THE STATE AND LOCAL
TAX IMPLICATIONS OF RESTRUCTURING THE ELECTRIC UTILITY INDUSTRY.

(E) THE COMMISSION SHALL, BY REGULATION OR ORDER, ADOPT
PROCEDURES TO IMPLEMENT THIS SECTION, INCLUDING THE ALLOCATION OF ANY
UNUSED OPPORTUNITY FOR CUSTOMER CHOICE AMONG CUSTOMER CLASSES.

7-511.

(A) EXCEPT FOR ELECTRIC COOPERATIVES AND MUNICIPAL ELECTRIC
UTILITIES:

(1) COMPETITIVE BILLING SHALL BEGIN ON JULY 1, 2000;

(2) COMPETITIVE METERING FOR LARGE CUSTOMERS SHALL BEGIN ON
JANUARY 1, 2002; AND

(3) COMPETITIVE METERING FOR ALL OTHER CUSTOMERS SHALL BEGIN
ON APRIL 1, 2002, OR EARLIER IF REQUESTED BY THE ELECTRIC COMPANY.

(B) THE COMMISSION SHALL ADOPT REGULATIONS OR ISSUE ORDERS TO
IMPLEMENT THIS SECTION.