HB 556
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 556 (Delegate D.E. Davis)
Economic Matters Finance
Public Service Commission - Virtual Public Hearings
This emergency bill authorizes the Public Service Commission (PSC) to hold virtual public
hearings on applications for utility rate increases and certificates of public convenience and
necessity (CPCN). For rate increase hearings, appropriate notice must be provided so that
persons in the affected service area may participate. For CPCN hearings, PSC must
prominently provide the virtual hearing information on its website and provide a
comparable opportunity for public comment and participation. Other requirements related
to the application processes are unchanged.
Fiscal Summary
State Effect: Special fund expenditures for PSC’s travel and other public hearing expenses
may decrease, likely no sooner than FY 2022, as discussed below. Special fund revenues
from assessments on public service companies decrease correspondingly. The overall
effect on PSC’s finances is likely modest.
Local Effect: Local government travel-related expenses may decrease, likely no sooner
than FY 2022; the amount, if any, does not materially affect local government finances.
Small Business Effect: Minimal.
Analysis
Current Law: Public hearing requirements for rate increases and CPCN applications do
not explicitly specify that a hearing must be in person, but related requirements presuppose
a physical location, such as references to specific utility service territories and project
locations, and requirements for physical signage at CPCN hearings.
State Fiscal Effect: PSC advises that it is currently holding public comment hearings
virtually, pursuant to an executive order issued as a result of COVID-19. Therefore, the
bill has no effect until after the expiration of that temporary authority – likely no earlier
than fiscal 2022, despite the bill’s emergency status. At that point, PSC has the option
under the bill to continue holding some or all public comment hearings on rate increases
and CPCN applications virtually. PSC advises that virtual hearings reduce its expenditures
associated with travel to and from in-person hearings, as well as provide operational time
savings. Since PSC’s costs are paid from assessments imposed on public service
companies, any reduction in PSC expenditures likewise reduces PSC revenues. However,
as PSC’s annual travel budget is approximately $77,000 in total, the potential effect on
PSC’s finances is likely modest.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 430 (Senator Kelley) - Finance.
Information Source(s): Public Service Commission; Department of Legislative Services
Fiscal Note History: First Reader - January 26, 2021
rh/lgc Third Reader - February 16, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 556/ Page 2


Statutes affected:
Text - First - Public Service Commission - Virtual Public Hearings: 3-104 Public Utilities, 3-113 Public Utilities, 7-207 Public Utilities
Text - Third - Public Service Commission - Virtual Public Hearings: 3-104 Public Utilities, 3-113 Public Utilities, 7-207 Public Utilities