Judge upholds PSC?s rate hike decision

Published June 10, 2006 4:00am ET



Baltimore City Circuit Court Judge Albert J. Matricciani Jr. issued orders late Thursday evening upholding the Public Service Commission?s recent decision to impose a 21 percent increase to Baltimore Gas and Electric residential users July 1.

The 21 percent increase is part of a 72 percent rate hike BGE plansto impose on residential customers July 1.

PSC announced the plan Monday after Matricciani had ruled earlier that PSC and BGE had erred when they agreed to a previous plan calling for a 19 percent rate hike to begin July 1 and the remaining portion of the 72 percent increase to be phased in over the next 18 months.

Baltimore City officials had asked the judge to review the June 5 announcement by the PSC to impose a rate stabilization plan beginning July 1 that included the 21 percent rate hike.

“The judge essentially upheld the action of the commission,” said Christine Nizer, manager of external relations for the PSC.

She added that the public has the “misperception that the 21 percent rate increase is set in stone.”

She said hearings ? that included a scheduling hearing at 10 a.m. Monday ? are aimed at perhaps amending the rate plan.

In a separate order, Matricciani denied a request by the Office of the People?s Counsel to clarify an option he gave the PSC to extend seven-year-old rate caps that have prevent BGE from raising rates.

“Given the severe time constraints facing them when the court issued its order on May 30, 2006, it seemed reasonable to suggest a temporary remedy, which would permit the PSC to conduct the adjudicatory hearing ordered, while delaying the rise in residential rates,” Matricciani said.

He added that the PSC acted properly in deciding to go with its previous 19 percent plan.

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