With a 50 percent rate increase set for June 1 for Baltimore Gas and Electric customers, state officials have stepped up calls to reregulate BGE and separate it from its parent company, Constellation Energy.
“When Martin O?Malley ran for governor, he decried the increase in electricity costs,” said state Del. Jill Carter, who is running for mayor. “Sadly, we did not resolve this issue in the legislative session. Now, there is no other alternative but a special session to prevent this unfair rate increase that will be a hardship for many Marylanders.”
Carter and activist organizations have called on O?Malley, Senate President Mike Miller and Speaker of the House Michael Busch to convene a special session. None have done so.
“A call for a special session is unnecessary and inconsistent with the explicit direction set forth by the governor and General Assembly during the 2007 session,” BGE spokesman Rob Gould said.
Gould said the Public Service Commission has already conducted hearings to consider BGE?s proposed rate increase. He added that a commission interim report is due to the General Assembly in December.
During the PSC hearings, Chair Steven Larsen and Commissioner Susanne Brogan questioned BGE lawyers about the appearance of impropriety by Constellation Energy?s chief risk officer, John Collins.
“Let me get this straight. Mr. Collins, who is privy to the actual bid submissions to BGE, can then walk over to Constellation?s side, put on his chief risk officer hat and be a part of their bidding process?” Brogan asked. “I am not impugning his credibility, but that gives the appearance of impropriety, wouldn?t you agree?”
According to Gould, the Federal Energy Regulatory Commission had no objection to Collins? role in both the regulated and nonregulated sides of Constellation?s business operations and that Collins signed a confidentiality agreement.
Other utility providers agreed a separation was in order.
David Hernandez, president and CEO of Liberty Power, said, “To ensure a fair process, utility companies should be separate from generation companies. When the end user and supplier is owned by the same company, you have a vertically integrated monopoly, which doesn?t create competition, only higher prices.”
