The Maryland Office of the People?s Counsel warned Monday that a proposed merger between Baltimore Gas and Electric and Florida Power and Light would provide no benefits to Maryland residents, but could expose them to risks.
“The evidence shows that residential ratepayers do not stand to gain from this merger. Worse yet, they may even be harmed by possible declines in reliability and service quality and the loss of potential competitors in the retail supply market,” said People?s Counsel Patricia Smith.
The People?s Counsel filed testimony Monday opposing the merger, which was approved by the General Assembly and governor in April. The office has also filed a protest and is seeking a hearing with the Federal Energy Regulatory Commission.
The proposed benefits to customers may be an illusion, said Deputy Counsel Theresa Czarski.
“The $600 million they put on the table is full of loopholes and contingencies such that it may never happen,” she said.
Much of the money comes from deferring items consumers already have to pay, with only $21 million resulting from savings generated by the merger, Czarski said. That adds up to about $4 a month per household. “A lot of that money could cease to exist after four years.”
A representative for BGE could not be reached for comment Monday.
