1. A. A utility shall offer hourly priced nonresidential electric supply service to all nonresidential customers ineligible for Type I or Type II SOS, excluding special generation contract customers.
2. B. A utility shall provide hourly priced service beginning with the time periods provided for Type III service in Regulation .03 of this chapter.
3. C. A utility may not change or alter tariff rules, terms, and conditions for HPS under §B of this regulation for a period of at least 2 years.

4. D. The rate for HPS shall include:

   1. (1) One of the following:

      1. (a) The PJM hourly LMP for energy; or
      2. (b) If PJM alters its pricing methods, the nearest equivalent to LMP;
   2. (2) Charges associated with PJM capacity obligation;

   3. (3) FERC-approved:

      1. (a) Transmission rates;
      2. (b) Ancillary services;
      3. (c) Energy losses;
      4. (d) Administrative costs;
      5. (e) Any other FERC approved or PJM charges and costs directly related to the utilities' hourly priced service;
   4. (4) Costs required to meet statutory renewable requirements;
   5. (5) Any other price elements directly related to the service as approved by the Commission;
   6. (6) Taxes;
   7. (7) An applicable administrative charge intended to recover the utility's verifiable and prudently incurred costs; and
   8. (8) A Commission-approved reasonable return.

Authority: Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

Effective date: June 7, 2004 (31:11 Md. R. 857)