In a strongly worded decision issued Tuesday, Baltimore Circuit Judge Albert Matricciani Jr. ordered the Public Service Commission to convene new hearings on Baltimore Gas & Electric Co.?s proposed 72 percent rate hike.
The decision, which came just hours after a packed courtroom heard arguments from both sides, included a stunning rebuke of the commission.
“The Court does not believe that the Commission acted in the public interest or with fairness to customers in the face of a recently announced 72 percent residential rate increase,” Matricciani?s decision read.
The decision requires the commission to hold new hearings that will allow the city an opportunity to cross-examine BGE executives and present other facts that might help reduce the rate hike.
Matricciani said in his decision that the commission could keep the rate caps in place “briefly” past the July 1 deadline until a decision is made.
The order marked a surprising setback for BGE officials, who argued that the city?s request for a review of the commission?s decision should be denied.
“Too little, too late,” BGE counsel Deborah Jennings argued before the judge. “The city had its chance, and it has passed.”
Jennings was forced to argue on behalf of the commission?s tardy attorney, answering sharp questions from Matricciani over why BGE objected to a review of the decision, if, as Jennings argued, the 72 percent rate increase was not legally reviewable.
“If that?s true, why would you object to a review?” the judge asked.
“Because we?re ready to implement this program now,” Jennings answered, referring to the rate stabilization plan that would defer the rate increase for customers who chose to “opt-in.”
In his arguments, City Solicitor Ralph Tyler urged the judge to throw out the commission?s decision because the April 28 hearings were “unlawful.”
“The commission cannot perform its public obligation without the facts,” Tyler said, citing missing testimony regarding savings from the merger, executive compensation, and cross-examination of BGE officials.
Mayor Martin O?Malley hailed the decision in a written statement Tuesday evening.
“This is a victory for working families who shouldn?t have to pay a 72 percent rate hike because our state government decided to make itself powerless in the face of a huge rate hike,” he said.
The commission has the right to appeal the judge?s decision.
