Md. Code, State Finance and Procurement § 2–401

(a) In this subtitle the following words have the meanings indicated.

(b) “Annual operating costs” include the cost of:

(1) the production, treatment, pumping, storage, transmission, and distribution of water and the maintenance and repair of equipment associated with these functions;

(2) the collection, pumping, transmission, and treatment of wastewater, and the maintenance and repair of equipment associated with these functions;

(3) administrative overhead;

(4) debt service;

(5) depreciation; and

(6) servicing customer accounts.

(c) “Lateral system construction costs” include:

(1) any cost necessary to plan, design, acquire, construct, inspect, test, and put into operation the lateral system to serve a State facility; and

(2) any indirect cost incurred by the local jurisdiction that is necessary to construct water and sewer lines.