Gov. Martin O?Malley and key legislative leaders said billions of dollars in rate relief for electricity consumers are in jeopardy if the House of Delegates doesn?t correct a change the Senate made to legislation enabling settlement of the state?s lawsuit with Constellation Energy.
Late Thursday, the Senate passed legislation that resolves nine years of disputes between the state and Constellation, providing a $170 rebate to customers and saving them from $1.5 billion in future liability for closing a nuclear power plant. But the senators tacked on an amendment saying any future power plants built in Maryland must be regulated by the state and they must offer their electricity first to state consumers.
“This was a vote against the governor,” said Senate Finance Chairman Thomas Mac Middleton, floor leader for the bill. “They were using the legislation as a vehicle to get a message across about reregulation.”
Middleton said therewere other measures in the works that would re-establish stronger regulation of utility companies that was abandoned in 1999.
The amendment was called a deal-killer by the Public Service Commission and Constellation officials. But the amendment?s co-sponsor, Sen. Jim Rosapepe, a Democrat representing Prince George?s and Anne Arundel counties, said, “I think the Senate sent a very strong message to utilities, the Public Service Commission and consumers. The painful era of electricity deregulation is coming to an end.”
“It?s totally consistent with Gov. O?Malley?s efforts to protect consumers,” Rosapepe said.
O?Malley disagreed, calling the amendment “a mistake. We hope it?s corrected in the House.” But the governor got the message. “This settlement does not solve a lot of problems we have in the future” with electricity and energy use. But it does take care of some of the problems in the past, he said.
Rob Gould, Constellation spokesman said the the settlement is in the best interest of BGE customers. ” Hopefully it will be passed in accordance with the agreement. That said, if this amedment is included, it will nullify the agreement.”
House Economic Matters Chairman Dereck Davis called the Senate amendment “troubling.” “This is not the bill to do it on,” Davis said.
The House has already given tentative approval to the enabling legislation without any amendments, as PSC Chairman Steven Larsen had requested them to do. It was scheduled for a final vote Friday night.
“There?s a lot of money at stake,” Davis said.
