Baltimore mayor blasts rate deal

Thebattle over who has the best plan to save Baltimore Gas & Electric Co. customers from the impending 72 percent rate increase hit a fevered pitch Thursday, as Mayor Martin O?Malley tried to sell his own solution while characterizing Gov. Robert Erhlich?s proposal for a phased-in rate increase “a loan shark deal.”

Erhlich?s deal would stagger the rate increases over several years, allowing consumers to opt in to defer some payments until 2008, with rate increases phasing in at 19 percent in 2006 and 25 percent in 2007. The plan also includes a $15 monthly fee, which O?Malley spokesman Rick Abbruzzese characterized as “Ehrlich?s new energy tax.” He said the plan “will cost Maryland families more than 72 percent in the long run.”

The mayor?s plan focused primarily on regulatory reform, energy efficiency and energy assistance for low-income Marylanders. Calling for capping BGE rates at “reasonable levels,” by July, the plan offered few specifics as to what “reasonable” would mean.

O?Malley?s proposal featured a stinging critique of the Public Service Commission, the agency responsible for setting consumer power rates in Maryland. O?Malley characterized the commission as “industry insiders” who serve the interest of the energy industry.

O?Malley also demanded a moratorium on the merger between Constellation Energy and Florida Power and Light until a reasonable rate increase was negotiated.

O?Malley also proposed converting the state vehicle fleet to “hybrid and other energy efficient vehicles” to save money on fuel costs, as well as promoting weatherization programs that would create and enforce “rental housing standards to promote energy efficiency housing in the state.”

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