intangible benefits gained by the unregulated subsidiaries. The case involved complaints regarding merchandise and appliance services provided by Baltimore Gas and Electric Co. (BG&E). Trade and business groups charged that the utility had launched a new business venture of kitchen remodeling and was using ratepayer subsidization to support its expansion.The PSC found that the state's public service law only granted authority over rates and public utility services offered by a regulated company. Preapproval of diversification activities was, thus, not required to assure just and reasonable rates and adequate provision of regulated services. The PSC upheld, however, a decision by the hearing examiner requiring the utility to notify the PSC about nonutility activities.