{"data":{"id":"us-md/md.-code-public-utilities-4-309","jurisdiction":"us-md","citation":"Md. Code, Public Utilities § 4–309","heading":"","body":"(a) (1) In this section the following words have the meanings indicated.\n(2) “Eligible limited–income customer” means a residential customer of a utility company with annual income that:\n(i) 1. is at or below 175% of the federal poverty level; or\n2. for a customer at least 67 years of age, is at or below 200% of the federal poverty level; or\n(ii) meets a broader designation approved by the Commission.\n(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.\n(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.\n(5) (i) “Utility company” means an electric company, a gas and electric company, or a gas company.\n(ii) “Utility company” does not include a small rural electric cooperative.\n(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.\n(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.\n(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.\n(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.\n(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:\n(i) a separate application for approval of the mechanism; or\n(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.\n(2) A proposal submitted under this section shall allocate the prudently incurred costs of the limited–income mechanism across rate classes.\n(3) The proposal shall include:\n(i) a detailed description of the proposed mechanism;\n(ii) the proposed method for allocating the mechanism’s costs across customer classes;\n(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;\n(iv) a time frame and process for the Commission to review the effectiveness of the mechanism after implementation; and\n(v) any other information the Commission considers necessary or useful to evaluate the proposal.\n(e) In evaluating a limited–income mechanism, the Commission shall consider:\n(1) the degree to which the mechanism promotes affordability of electricity or natural gas for limited–income customers;\n(2) the public interest in allocating the costs of the mechanism between the utility company’s shareholders and rate payers;\n(3) the impact on rates, utility operating costs, customer arrearages, customer disconnections, uncollectible costs, and successful completion of payment plans;\n(4) the ability of a limited–income customer to continue to receive benefits when relocating within the same service territory;\n(5) coordination of benefits under the mechanism with any other public or private assistance that may be available to the customer;\n(6) a minimum level of support or assistance structure to provide equitable availability of limited–income assistance across the State; and\n(7) any other information the Commission considers appropriate.\n(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.\n(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.","path":["Article - Public Utilities"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu\u0026section=4-309","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T20:00:28Z","sha256":"696d634d1261fe81ad2103a24130135db1bd0a83116cd1497bf016639f71a20f","source_id":"us-md","stale":false,"prev":"us-md/md.-code-public-utilities-4-308","next":"us-md/md.-code-public-utilities-4-401"},"notice":"GroundRules: Original legal text. Not legal advice."}