Opponents of the proposed liquified natural gas facility at Sparrows Point this week are targeting Baltimore-based Legg Mason, whose clients make up the largest shareholding in the company trying to bring the plant to Dundalk.
In a federal utility regulations filed earlier this month, Legg Mason claimed to be merely a “passive investor” in AES Corp., but residents say that as a 19 percent owner, the company is in position to help them halt the energy firm?s plans.
“We believe as the largest single investor in AES, Legg Mason is in position to control the company,” said attorney Bart Fisher, who is representing a group of Dundalk residents known as the LNG Opposition Team. “Their presentation is misleading.”
Legg Mason executive Michael Rae earlier this month filed a request to be exempted from a new law that allows the federal government to regulate top shareholders in utility companies as such. In his request, Rae said Legg Mason and its affiliates are simply holding companies of AES Corp.
“If you?re a holding company, you can file for an exemption,” said Rae, Legg Mason?s director of compliance and associate general counsel. “All we?re saying is, ?Please don?t regulate us as a utility company.? ”
But Fisher and residents say if Legg Mason is under federal regulations as a utility company, they may have an easier time accessing financial records during legal proceedings associated with federal approval of the proposed plant. If Legg Mason executives opposed the plant, Fisher said, they may be able to convince AES officials the plan is not in the public?s interest.
AES? plans call for ultra-cold liquified gas to arrive by ships and transformed into natural gas at the plant. The gas would be transported through an 87-mile pipeline through Harford County into Pennsylvania.
The Federal Energy Regulatory Commission will ultimately approve or deny the plant, which AES officials say could generate millions of dollars yearly in tax revenues, clean energy and job opportunities.
A FERC official said Tuesday the law exempting holding companies from regulation is new and the agency will continue to take comments onLegg Mason?s request until May 26. Thresholds for a company?s investment are unclear at this time.
Legg Mason attorneys declined to comment on Dundalk residents? call for the company?s assistance in their battle against AES? proposal and the environmental impacts of dredging, accidental explosions, terrorism and effects on property values.
“We have a corporate giant here in town that in our minds could help us,” said LNG Opposition Team coordinator Sharon Beazley. “For 100 years, we?ve been exposed to toxins in air, water and subsurface. It?s got to stop.”
