Energy cooperative bill on the table

Published June 7, 2006 4:00am ET



Columbia residents may be the first in the state to have their pick between two cooperatives ? or a combination of the two ? that could be organized to pool their energy bills for a better rate.

Howard County Council Member Kenneth Ulman, D-District 4, proposed a bill Monday to petition the state for the ability to create a cooperative.

In addition, the Columbia Association is moving forward with plans to develop an energy cooperative for its 33,000 lean-paying residents.

“My impression is, most likely it would end up being one plan that is offered to both constituencies,” said Phil Marcus, board member at the Columbia Association.

“I think it would be crazy to compete.”

Ulman estimates residents could save between 15 percent and 20 percent on their energy bills under the county bill, but Wayne Harbaugh, manager of pricing and regulatory services at Baltimore Gas and Electric, said the estimate is a little high.

Marcus said the savings under the association?s plan could be 8 percent to 10 percent.

If the county bill passes, the Maryland Public Service Commission must determine whether enough competition is available to residents from energy providers.

“Because we have not done it before, there is no specific standard to determine the level of competition,” said Christine Nizer, the commission?s manager for public relations.

The commission will determine how many residents receive service from the four energy providers for the Howard County area: Pepco Energy, of Arlington, Va.; Ohms Energy Co., of Rosedale; Washington Gas Energy Services, of Herndon, Va.; and Commerce Energy, of Orange County, Calif., Nizer said.

Some residents say no true competition exists despite the four providers.

“I suspect there are some other providers out there, but I don?t know about it. It hasn?t been advertised,” said Allan Harris, a Columbia resident who said he would be interested in joining the cooperative.

“I don?t want to pay any more than anyone else. I certainly am looking for alternate sources.”

The Columbia Association, which has been working to form a cooperative for eight months, just completed the bidding process for a consultant, CQI Associates LLC, to help its residents and businesses combine their energy bills.

The association will first create a cooperative for its businesses, and then bring residents on board about 10,000 at a time, Marcus said.

Public hearings

Two more Howard County Council meetings will be held to determine whether to petition for the ability to form an energy cooperative for residents.

A public hearing will be held June 19; the council will vote July 3. The meetings will begin at 7:30 p.m. in the Banneker Room of the George Howard Building on Court House Drive in Ellicott City.

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