1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2) “Eligible limited-income customer” means a residential customer of a utility company with annual income that:

      1. (i) 1. is at or below 175% of the federal poverty level; or

         1. 2. for a customer at least 67 years of age, is at or below 200% of the federal poverty level; or
      2. (ii) meets a broader designation approved by the Commission.
   3. (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. (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. (5)

      1. (i) “Utility company” means an electric company, a gas and electric company, or a gas company.
      2. (ii) “Utility company” does not include a small rural electric cooperative.
2. (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.

3. (c)

   1. (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. (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. (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.

4. (d)

   1. (1) A utility company that proposes a limited-income mechanism for Commission approval under subsection (c) of this section shall include the proposal in:

      1. (i) a separate application for approval of the mechanism; or
      2. (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. (2) A proposal submitted under this section shall allocate the prudently incurred costs of the limited-income mechanism across rate classes.

   3. (3) The proposal shall include:

      1. (i) a detailed description of the proposed mechanism;
      2. (ii) the proposed method for allocating the mechanism's costs across customer classes;
      3. (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;
      4. (iv) a time frame and process for the Commission to review the effectiveness of the mechanism after implementation; and
      5. (v) any other information the Commission considers necessary or useful to evaluate the proposal.

5. (e) In evaluating a limited-income mechanism, the Commission shall consider:

   1. (1) the degree to which the mechanism promotes affordability of electricity or natural gas for limited-income customers;
   2. (2) the public interest in allocating the costs of the mechanism between the utility company's shareholders and rate payers;
   3. (3) the impact on rates, utility operating costs, customer arrearages, customer disconnections, uncollectible costs, and successful completion of payment plans;
   4. (4) the ability of a limited-income customer to continue to receive benefits when relocating within the same service territory;
   5. (5) coordination of benefits under the mechanism with any other public or private assistance that may be available to the customer;
   6. (6) a minimum level of support or assistance structure to provide equitable availability of limited-income assistance across the State; and
   7. (7) any other information the Commission considers appropriate.
6. (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.
7. (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.

Added by Acts 2021, c. 638, § 1, eff. May 30, 2021; Acts 2021, c. 639, § 1, eff. May 30, 2021.