(N) TO INTANGIBLE TRANSITION PROPERTY AS DEFINED IN § 7-501 OF
THE PUBLIC UTILITY COMPANIES ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 4-403 of the
Public Utility Companies Article of the Annotated Code of Maryland be repealed. Any
net accumulated over recovery or under recovery of actual fuel costs by each electric
company as of the initial implementation date under Title 7, Subtitle 5 of the Public
Utility Companies Article, as enacted by this Act, shall be credited or debited, as
appropriate, to the electric company's rates and shall be refunded or collected; as
appropriate, over a period not to exceed 12 months.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Public Utility Companies

7-203.

(a) (1) The Commission shall:

(i) impose an environmental surcharge per kilowatt hour of
electricity [generated] DISTRIBUTED TO RETAIL ELECTRIC CUSTOMERS within the
State; and

(ii) authorize each electric company to add the full amount of the
surcharge to its customers' bills.

(2) To the extent that an electric company fails to collect the surcharge
from its customers, the amount uncollected shall be deemed a cost of power
[generation] DISTRIBUTION and allowed and computed as such together with other
allowable expenses for purposes of rate-making.

(b) (1) The Comptroller shall collect the revenue from the surcharge
imposed under subsection (a) of this section and place the revenue into a special fund,
the Environmental Trust Fund.

(2) The Comptroller shall maintain the method of collection of the
surcharge from each electric company, and the money collected shall accrue to the
Fund.

(e) (1) Each fiscal year; the Secretary of Natural Resources shall coordinate
the preparation of the annual budget required to carry out the provisions of the Power
Plant Research Program under Tittle 3, Subtitle 3 of the Natural Resources Article.

(2) Each fiscal year, on approval of the annual budget by the General
Assembly for the Power Plant Research Program, the Commission shall establish the
amount of the environmental surcharge per kilowatt hour of electric energy
[generated] DISTRIBUTED in the State that is to be imposed on each electric company
in accordance with subsection (a) of this section.

(d) (1) Notwithstanding any other provision of this subtitle, the amount of
the surcharge for each account OF EACH RETAIL ELECTRIC CUSTOMER may not
exceed the lesser of 0.15 mill per kilowatt hour or $1,000 per month.