Six consumer advocacy groups have filed a complaint with the Federal Energy Regulatory Commission charging that Baltimore Gas & Electric Co. prices for energy are not “just and reasonable.”
The petition, filed on behalf of lead advocates Public Citizen, a consumer advocate group, and ACORN, a community activist organization, claims that BGE?s transfer of its power plants to Constellation Energy allows higher prices.
“They transferred their coal plants to Constellation, so they are no longer regulated by the state of Maryland,” said Tyson Slocum. “It?s the primary cause of the rate hike.”
Constellation Energy was formed in 1999 after the Maryland General Assembly passed a bill to deregulate energy in the state. Shortly thereafter, BGE transferred its power facilities to Constellation to take advantage of the new regulatory climate.
“The state thought it would be great idea. It no longer protected consumers,” said Tyson Slocum, acting director of Public Citizen.
Slocum said the petition asks the commission to investigate and rule on whether the rates BGE charges are “just and reasonable,” a legal standard used to determine if rates are fair.
Sonja Merchant, 49, a Baltimore resident and an ACORN member, said the increase in her monthly bill exceeds the proposed 72 percent hike.
“My bill has increased from $91 a month to $307, and that?s with budget billing.” she said. “That?s higher than 72 percent, so I support the filing.”
Merchant has applied for energy assistance to cushion the rate increases, but still thinks something needs to bedone. “This can?t be fair,” she said.
But BGE spokesman Robert Gould said the rate increase reflects the market. “The 72 percent increase represents the marketplace and nothing else,” he said. “BGE has not made one cent of profit on the commodity since 1999.”
Slocum, though, thinks the only long-term solution to the problem is to turn back the clock.
“The lawmakers that supported it should be ashamed of themselves. The only solution is to end the experiment and re-regulate.”
