ROBERT L. EHRLICH, JR., Governor                           H.B. 391

(ii) The Chairman may include a site deleted from a 10-year plan
under subparagraph (i) of this paragraph in a subsequent 10-year plan.

(3)     The Chairman shall include information in the annual 10-year plan
on current and projected efforts by electric companies and the Commission to
moderate overall electrical generation demand and peak demand through the electric
companies' promotion of energy conservation by customers and through the electric
companies' use of alternative energy sources, including cogeneration.

(4)      TO THE EXTENT THAT THE COMMISSION REQUIRES AN ELECTRIC
COMPANY TO REPORT THE INFORMATION DESCRIBED IN PARAGRAPH (3) OF THIS
SUBSECTION, A SMALL RURAL ELECTRIC COOPERATIVE DESCRIBED IN § 7-502(A) OF
THIS TITLE MAY SATISFY THE REQUIREMENT BY SUBMITTING TO THE COMMISSION
A COPY OF A REPORT THE POWER REQUIREMENT STUDY THAT THE SMALL RURAL
ELECTRIC COOPERATIVE SUBMITS TO THE FEDERAL ENERGY RECULATORY
COMMISSION THAT INCLUDES THE REQUIRED INFORMATION RURAL UTILITIES
SERVICE.

(b) (1) The Commission shall evaluate the cost-effectiveness of the
investments by electric companies in energy conservation to reduce electrical demand
and in renewable energy sources to help meet electrical demand.

(2) The evaluation of investments shall include:

(i) the electric companies' promotion and conduct of a building
audit and weatherization program, including low-interest or no-interest electric
company financing for the installation of energy conservation materials and
renewable energy devices;

(ii) utilization of renewable energy sources;

(iii) promotion and utilization of electricity from cogeneration and
wastes; and

(iv) widespread public promotion of energy conservation programs.

7-203.

(a) (1) The Commission shall:

(i) impose an environmental surcharge per kilowatt hour of
electricity 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
distribution and allowed and computed as such together with other allowable
expenses for purposes of rate-making.

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