Maryland Code § PU-7-706

Section PU-7-706
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(a) (1) Except as provided in paragraph (2) of this subsection, in
accordance with the obligation to provide standard offer service through the bid
process created under § 7-510 of this title, the Commission shall allow an electricity
supplier to recover actual dollar-for-dollar costs incurred, including a compliance fee
under § 7-705 of this subtitle, in complying with a State-mandated renewable energy
portfolio standard.
(2) In accordance with the Phase II settlement agreement approved
by the Commission in Order No. 78710 in Case No. 8908 on September 30, 2003, for
any full-service agreement executed before the renewable energy standard under
this subtitle applies to an electric company, the electric company and its wholesale
electricity suppliers may pass through their commercially reasonable additional
costs, if any, associated with complying with the standard, through the end of the
year of standard offer service in which the requirement took effect.
(b) An electricity supplier may recover a compliance fee if:
(1) the payment of a compliance fee is the least-cost measure to
customers as compared to the purchase of Tier 1 renewable sources to comply with a
renewable energy portfolio standard;
(2) there are insufficient Tier 1 renewable sources available for the
electricity supplier to comply with a renewable energy portfolio standard; or

(3) a wholesale electricity supplier defaults or otherwise fails to
deliver renewable energy credits under a supply contract approved by the
Commission.
(c) Any cost recovery under this section:
(1) for all electricity suppliers, may be in the form of a generation
surcharge payable by all current electricity supply customers, except as otherwise
provided in § 7-704(e) of this subtitle;
(2) shall be disclosed to customers in a manner to be determined by
the Commission; and
(3) may not include the costs for a power purchase contract under the
federal Public Utility Regulatory Policy Act contemplated in rates or restructuring
proceedings.
(d) (1) In accordance with regulations adopted by the Commission in
consultation with the Department of Commerce, the Commission may waive the
recovery of all or part of the compliance fee assessed on the load of a particular
industrial or nonretail commercial customer for a particular year, based on a
demonstration by the applicant of an extreme economic hardship that significantly
impairs the continued operation of the applicant.
(2) Any compliance fee recovery that is waived under this subsection
may not be assessed against other customers.
(3) An electricity supplier is not liable for any compliance fee that is
waived under this subsection.

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