A state audit of the Public Service Commission found the agency may have collected $2.2 million too much from the utilities it regulates and also spent nearly $500,000 on an out-of-state law firm without the approval of the Board of Public Works.
Legislative Auditor Bruce Myers said the PSC must bill the utilities to cover agency operating expenses, but the annual assessments were not reduced by other items the companies paid.
The audit covered 2004 through 2006, when the PSC was controlled by commissioners appointed by Gov. Robert Ehrlich.
PSC Chairman Steven Larsen, recently appointed by Gov. Martin O?Malley, responded to the audit in a July 16 letter that “the commission intends to comply fully with the letter and spirit of the law” and is trying to determine how to dispose of the excess collections.
In fiscal 2004, the PSC gave a no-bid sole-source contract to the Washington-based law firm of Dickstein Shapiro to handle legal issues involving PEPCO and an out-of-state bankruptcy.
Dickstein Shapiro was paid $453,000.
PSC spokesman LaWanda Edwards said the agency counsel was conferring with the Department of Budget and Management and the Board of Public Works because “apparently there are some finance and procurement litigative consulting contracts, such as this one, that are exempt from having to go to BPW.”
Also without the approval of the board, the PSC paid a $27,000 settlement to a former employee whom a court determined was wrongfully fired.
