(C) (1) AN ELECTRIC COMPANY SHALL BE PROVIDED A FAIR OPPORTUNITY
TO RECOVER FULLY ALL COSTS OF THE FOLLOWING THAT HAVE BEEN OR WILL BE
INCURRED BY THE ELECTRIC COMPANY UNDER PUBLIC PURPOSE PROGRAMS OR
OTHER PLANS ESTABLISHED BY LAW OR ORDERED BY THE COMMISSION;

(I) DEMAND SIDE MANAGEMENT AND OTHER ENERGY

CONSERVATION PROGRAMS AND PLANS;

(II) UNIVERSAL SERVICE PROGRAMS AND OTHER PUBLIC PURPOSE
PROGRAMS; AND

(III) CONSUMER EDUCATION PROGRAMS UNDER § 7-505(B)(1) OF

THIS SUBTITLE.

(2) (I) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION,
THE COSTS SUBJECT TO THIS SUBSECTION SHALL BE FUNDED IN THE ELECTRIC
COMPANY'S DISTRIBUTION TERRITORY BY A SURCHARGE OR OTHER COST RECOVERY
MECHANISM COLLECTED ON A STATEWIDE BASIS THAT;

(I) 1. FULLY RECOVERS FROM CUSTOMERS IN THE TERRITORY
THE COSTS OF THE PLANS AND PROGRAMS IN THE TERRITORY; AND

(II) 2. SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH,
WITH RESPECT TO ANY OF THESE COSTS NOT INCLUDED IN RATES ON JANUARY 1,
2000, IS NOT SUBJECT TO ANY OTHERWISE APPLICABLE RATE FREEZE OR CAP,

(II) THE RECOVERY BY AN ELECTRIC COMPANY OF COSTS FOR A
UNIVERSAL SERVICE PROGRAM IS SUBJECT TO ANY APPLICABLE CAP REGARDLESS
OF WHEN THE COSTS ARE INCLUDED IN RATES.

(3) DURING THE FISCAL YEAR ENDING JUNE 30, 2000, AN ELECTRIC
COMPANY MAY NOT, UNDER PARAGRAPH (2) OF THIS SUBSECTION, RECOVER COSTS
OF A CONSUMER EDUCATION PROGRAM ESTABLISHED BY LAW, REGULATION, OR
ORDER.

7-512.1.

(A) (1) THE COMMISSION SHALL ESTABLISH A UNIVERSAL SERVICE
PROGRAM TO ASSIST ELECTRIC CUSTOMERS WITH ANNUAL INCOMES AT OR BELOW
150% OF THE FEDERAL POVERTY LEVEL.

(2) THE COMMISSION, WITH INPUT FROM A PANEL OR ROUNDTABLE OF
INTERESTED PARTIES, SHALL CONTRACT WITH A FOR PROFIT OR NONPROFIT
MARYLAND CORPORATION EXISTING AS OF JULY 1, 1000 TO ADMINISTER THE
UNIVERSAL SERVICE PROGRAM.

(3) THE COMMISSION SHALL HAVE OVERSIGHT RESPONSIBILITY FOR
THE UNIVERSAL SERVICE PROGRAM.

(4) THE COMPONENTS OF THE UNIVERSAL SERVICE PROGRAM SHALL