ROBERT L. EHRLICH, JR., Governor                           H.B. 797

(2)     The Commission shall determine a fair and equitable allocation for
collecting the charges among all customer classes pursuant to subsection (d) of this
section.

(3)     [Any] IN ACCORDANCE WITH SUBSECTION (F)(5)(II) (F)(5) OF THIS
SECTION, ANY unexpended universal service program funds returned to customers
under subsection [(h)] (F) of this section shall be returned to EACH customer
[classes] CLASS AS A CREDIT in the same [proportions as they were collected]
PROPORTION THAT THE CUSTOMER CLASS CONTRIBUTED CHARGES TO THE FUND.

(4)     An electric company shall recover universal service program costs in
accordance with § 7-512 of this subtitle.

(5)     The Commission shall determine the allocation of the universal
service charge among the generation, transmission, and distribution rate components
of all classes.

(6)     The Commission may not assess the universal service surcharge on a
per kilowatt-hour basis.

(c) (1) On or before December 1[, 1999, and on an annual basis thereafter]
OF EACH YEAR, the Commission shall report, subject to § 2-1246 of the State
Government Article, to the General Assembly on the universal service program,
including:

(1) (I) subject to [subsections (d) and (e)] SUBSECTION (D) of this
section, a recommendation on the total amount of funds for the program for the
following fiscal year BASED ON:

(I) 1. THE LEVEL OF PARTICIPATION IN AND THE AMOUNTS
EXPENDED FROM THE UNIVERSAL SERVICE PROGRAM DURING THE PRECEDING
FISCAL YEAR;

(II) 2. HOW PAYMENTS TO CUSTOMERS WERE CALCULATED
DURING THE PRECEDING FISCAL YEAR;

(III) 3. THE PROJECTED NEEDS OF THE UNIVERSAL SERVICE
PROGRAM FOR THE NEXT FISCAL YEAR; AND

(IV) 4. THE AMOUNT OF ANY SURPLUS CARRIED OVER IN THE
UNIVERSAL SERVICE PROGRAM FUND UNDER SUBSECTION (F)(5)(I) OF THIS SECTION;

(2) (II) for bill assistance:

(i) 1. the total amount of need, as determined by the
Commission, for electric customers with annual incomes at or below 150% of the
federal poverty level and the basis for this determination; and

(ii) 2. the percentage of need, as determined by the Commission,
but at a minimum of 50%, that should be funded through the universal service
program and the basis for this determination;

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