The Public Service Commission canceled the hearing scheduled Wednesday on the Constellation Energy-Florida Power and Light merger, because of concerns related to questions over the link between the merger and the electric rate stabilization plan.
PSC spokeswoman Christine Nizer said the delay raised in the petition filed by Citizen?s Watch and Acorn had prompted the staff to recommend a delay, which the commission approved. No new hearing date has been set.
The petition, filed by Citizen?s Watch, ACORN and four other consumer activist groups, charged that details surrounding the negotiations over Gov. Robert Ehrlich?s rate stabilization plan with Constellation should be shared. The petition charged that the lack of disclosure by Ehrlich make it impossible for the groups to knowledgeable scrutinize the merger.
Ehrlich announced an “opt-in” plan last week negotiated with Constellation, the parent company of BGE, that would allow customers to phase in rate increases over time. The plan also required that consumers pay $15 per month for two years to BGE to participate in rate deferral plan.
Citizen Watch?s Tyson Slocum said the proposed merger between Constellation Energy and Florida Power and Light is a key part of the current rate hike.
“Prices are going to continue to go up if we don?t properly scrutinize this merger,” Slocum said.
The announcement comes as the merger between Constellation Energy and Florida power light is being criticized. At an energy roundtable on Wednesday, Baltimore Mayor Martin O?Malley questioned whether the merger was a good idea. “I don?t know if the merger is in the best interest of the citizensof Maryland,” O?Malley said.
Slocum said that his organization intends to use the hearing to explore the relationship between Constellation Energy and BGE, particularly how large a part Constellation played in the power action that prompted the 72 percent rate increase, a figure the company has not disclosed. “If Constellation is supplying 90 percent of the power to BGE, that?s not competition,” Slocum said.
“We need to know the truth.”
