Maryland Statutes
Subtitle 3 - Specific Rate Regimes
Section 4-309 - Limited-Income Mechanism to Benefit Limited-Income Utility Customer -- Adoption by Utility Company -- Proposal Items -- Consideration by Commission -- Eligibility for Other Assistance Programs

(a)    (1)    In this section the following words have the meanings indicated.
        (2)    “Eligible limited–income customer” means a residential customer of a utility company with annual income that:
            (i)    1.    is at or below 175% of the federal poverty level; or
                2.    for a customer at least 67 years of age, is at or below 200% of the federal poverty level; or
            (ii)    meets a broader designation approved by the Commission.
        (3)    “Limited–income mechanism” or “mechanism” means a process approved by the Commission under this section to benefit an eligible limited–income customer of a utility company.
        (4)    “Payment plan” means an agreement between an eligible limited–income customer and a utility company to pay an arrearage balance over a specific period of time to avoid disconnection of a utility service.
        (5)    (i)    “Utility company” means an electric company, a gas and electric company, or a gas company.
            (ii)    “Utility company” does not include a small rural electric cooperative.
    (b)    The General Assembly finds and declares that the societal benefits of a well–constructed limited–income mechanism to benefit Maryland’s eligible limited–income customers are in the public interest.
    (c)    (1)    Subject to the approval of the Commission, a utility company shall adopt a limited–income mechanism to benefit an eligible limited–income customer.
        (2)    Notwithstanding § 4–503(b) of this title, the mechanism may take the form of a program, tariff provision, credit, rate, rider, or other means to assist an eligible limited–income customer to afford a utility service.
        (3)    A municipal electric utility may adopt a limited–income mechanism subject to the approval of the Commission in the same manner as a utility company in accordance with this section.
    (d)    (1)    A utility company that proposes a limited–income mechanism for Commission approval under subsection (c) of this section shall include the proposal in:
            (i)    a separate application for approval of the mechanism; or
            (ii)    only with the prior approval of the Commission, an application for a base rate proceeding, including an alternative rate proceeding, or any other proceeding to alter the utility company’s base rates under the authority of the Commission.
        (2)    A proposal submitted under this section shall allocate the prudently incurred costs of the limited–income mechanism across rate classes.
        (3)    The proposal shall include:
            (i)    a detailed description of the proposed mechanism;
            (ii)    the proposed method for allocating the mechanism’s costs across customer classes;
            (iii)    the rationale supporting the utility company’s proposal for a mechanism to benefit the eligible limited–income customers in the utility company’s service territory;
            (iv)    a time frame and process for the Commission to review the effectiveness of the mechanism after implementation; and
            (v)    any other information the Commission considers necessary or useful to evaluate the proposal.
    (e)    In evaluating a limited–income mechanism, the Commission shall consider:
        (1)    the degree to which the mechanism promotes affordability of electricity or natural gas for limited–income customers;
        (2)    the public interest in allocating the costs of the mechanism between the utility company’s shareholders and rate payers;
        (3)    the impact on rates, utility operating costs, customer arrearages, customer disconnections, uncollectible costs, and successful completion of payment plans;
        (4)    the ability of a limited–income customer to continue to receive benefits when relocating within the same service territory;
        (5)    coordination of benefits under the mechanism with any other public or private assistance that may be available to the customer;
        (6)    a minimum level of support or assistance structure to provide equitable availability of limited–income assistance across the State; and
        (7)    any other information the Commission considers appropriate.
    (f)    If an approved limited–income mechanism requires that the Office of Home Energy Programs must certify an eligible limited–income customer’s qualifications to participate in a limited–income mechanism, the Office shall certify an eligible limited–income customer’s qualifications before the customer may participate in the mechanism.
    (g)    An eligible limited–income customer who participates in a mechanism under this section may also be eligible for other assistance programs offered in the State, including those offered by a utility company or the Office of Home Energy Programs, the Department of Housing and Community Development, or any other public or private source.