In continuing hearings before the Public Service Commission, an executive for Constellation Energy told the five-member panel that his company was in business to make profits for its shareholders, not cost-savings for Maryland consumers. Constellation supplies Baltimore Gas and Electric Co. with its energy needs, much like a network server provides individual computers.
“We have an obligation to increase profits [for our shareholders],” said John Collins, vice president and chief risk management officer for Constellation Energy Inc., in response to questions by PSC chairman Steven Larsen.
“Can you offer lower priced energy to BGE?” said Larsen.
“No, we can?t, and we don?t believe anyone else in the marketplace can, either,” Collins said.
The blue-ribbon commission posed many questions to the Constellation executive in the sixth day of hearings into BGE?s proposed 50 percent rate increase, which would take effect in June.
On Friday, PSC members heard from John “Skip” Trimble of South River Consultants who told the commission that if Maryland managed its energy needs like an investment portfolio or mutual fund, consumers could potentially see a 15 percent to 25 percent savingson their bills.
When Commissioner Harold Williams asked Collins about the concept of portfolio management for the state, Collins replied, “[Trimble] should bundle [portfolio management services] and sell it to customers. Proof [of his success] would be in the number of customers he attracts.”
According to Collins, managing the energy needs of BGE customers like an investment portfolio would be too risky.
Discussions then focused on Maryland?s power-generation plants.
The state?s plants feed all their power onto a grid that is routed to a server, which then provides energy on a daily basis not only to Maryland, but also to Pennsylvania, New Jersey and other states.
Several commissioners asked Collins about having Maryland?s generators serving the state?s needs only.
“Wouldn?t that be cheaper than the current SOS system if Maryland?s energy came from the [local plants]?” asked Commissioner Lawrence Brenner. “Couldn?t it come from the zone and still provide a profit for Constellation?”
But Collins told the panel that dedicating Maryland?s energy plants specifically for Maryland?s use would not be feasible and was not that simple.
To that Brenner said, “The commission will be looking at all alternatives within the marketplace and available incentives that will help drive down prices for Maryland consumers to as cheap as reasonably possible.”
