Democrats not impressed with governor’s last-minute plans

Future of Public Service Commission, schedule for electric rate hike at heart of testimony for veto hearing

Wednesday, June 21, 2006

by Douglas Tallman

Staff Writer

Ehrlich administration aides earlier this week promised both sides would be heard during Tuesday’s veto hearing in Annapolis on the legislation granting Baltimore Gas and Electric customers relief from a 72 percent rate hike on electricity.

‘‘We want to give equal time. We will give equal time,” Ehrlich spokesman Henry P. Fawell said Monday.

Between 75 and 100 people signed up to speak.

Gov. Robert L. Ehrlich Jr. (R) called for the unusual hearing, hours after the General Assembly passed the legislation during a rare special session in Annapolis last week.

‘‘It will give an opportunity for the public to be heard on this scheme. ... A lot of people want to be heard,” Ehrlich told reporters. ‘‘Whether they’re positive or negative, people need to know the fundamental facts.”

In some ways, the relief plan resembles others proposed in the past several months. Under the General Assembly’s plan, all BGE customers would get a 15 percent increase on July 1 that lasts for 11 months. The bill also fires the Public Service Commission, the five-member board that has been the center of the rate controversy ever since it signed off on a 72 percent increase in electricity rates.

On June 1, 2007, the new PSC would approve another rate increase that would get BGE customers at market rates by Jan. 1, 2008. Customers also would be charged $2.19 a month for 10 years to cover the cost of the deferral.

BGE’s rates have been capped since 1999, and the 72 percent represents, in part, recent increases in energy costs, brought on by bad weather in the Gulf of Mexico and political unrest around the Persian Gulf.

The governor’s critics — that is, the elected officials who passed last week’s rate relief plan — have looked at the veto hearing skeptically.

Updates
The veto hearing continued in Annapolis as The Gazette was going to press, For updates, go to www.gazette.net.
Key provisions
The electricity rate bill, which passed the House 109-26 and the Senate 36-11 last week, would: Fire the Public Service Commission, to be replaced by 10 names submitted by the Senate president and House speaker.
Increase residential rates by 15 percent on July 1, which last until June 1, 2007.
Charge BGE customers $2.19 a month for 10 years to cover the cost of deferring the rate hike.
Allow customers to participate in another rate deferral plan developed by the new PSC on June 1, 2007, or pay market rate prices for their power.
Have all customers paying market rates beginning Jan. 1, 2008.
Pass on savings generated by the proposed $11.5 billion merger between BGE’s parent company, Constellation Energy Group, and Florida Power and Light.
Cutting energy bills Saturday, June 24 10 a.m. — The Clean Energy Partnership holds a forum for residential ratepayers on why electricity bills are going up, what you can do, whether deregulation is working. Speakers: County Executive Douglas M. Duncan, County Council President George L. Leventhal, state Sen. Robert J. Garagiola, Pepco President Thomas Graham. BCC Regional Services Center, 4805 Edgemoor Lane, Bethesda.
Tuesday, June 27 7 p.m. — Workshop, hosted by county Department of Environmental Protection, identifies ways of cutting energy use by 10 percent or more and how to choose an electricity supplier. Whole Foods, 1649 Rockville Pike, Rockville. Call Eric R. Coffman, DEP’s senior energy planner, at 240-777-7754 or e-mail eric.coffman@ montgomerycountymd.gov.

‘‘The question I have is how many people will step forward and say, ‘Please don’t fire the PSC’? I’m not sure such a person exists out there,” said House Majority Leader Kumar P. Barve (D-Dist. 17) of Gaithersburg.

Senate President Thomas V. Mike Miller Jr. said he was willing to give the governor the benefit of the doubt, assuming the hearing will be balanced.

‘‘But I’m having doubts his minions will allow it,” Miller said.

Miller (D-Dist. 27) of Chesapeake Beach was not reserved when it came to assessing Ehrlich’s performance during the special session.

‘‘The entire day, he didn’t participate. He offered no amendments, no suggestions. We did the best we could. The speaker and I had to work in harmony, we had to work hard to make government work,” he said.

‘‘He walked way from the field of honor. ... You go into battle and you fight valiantly,” Miller continued.

Ehrlich, however, remained on the sidelines.

‘‘After everything’s over, he comes in and shoots the wounded. It’s cowardice,” Miller said.

The plan focused on BGE and its 1.1 million customers in Central Maryland. The bill also codified the deferred rate plan approved for Pepco and Delmarva Power and Light customers in May.

‘‘It puts Pepco and Delmarva customers much more in line with how we’re going to treat the BGE customers,” said Sen. Patrick J. Hogan (D-Dist. 39) of Montgomery Village.

Other power companies will benefit from a change in the way utilities will bid their electricity needs. Part of the reason for the 72 percent increase was blamed on the timing of BGE’s power auction.

Miller said he was not going to testify at Tuesday’s veto hearing.

Fawell said the Senate president’s testimony wasn’t needed.

‘‘There are eight years of documentation of what Mike Miller thinks about deregulation. He doesn’t need another day,” Fawell said.

The governor would rather hear from Marylanders who will be affected by the measure directly rather than legislators, he said.

The hearing began at 3 p.m. and was expected to last until 8 p.m. in the Governor’s Reception Room, on the second floor of the State House, in Annapolis.

People who wanted to testify had to go online to www.maryland.gov or call 410-974-3336. They had to have received an e-mail or telephone confirmation in order to speak Tuesday.

That procedure drew sharp criticism from Terry Lierman, chairman of the Maryland Democratic Party.

‘‘This entire process is a sham,” Lierman said in a statement. ‘‘It’s not only a sign of a weak and indecisive chief executive, it’s also proof of how dependent Ehrlich is on cheap public stunts to bolster his failing public image.”

‘‘It’s easy to say what you want when you have no evidence and no responsibility,” Fawell said. ‘‘Equal time means equal time.”

Ehrlich has until Thursday to decide whether to sign the bill, veto it or let it become law without his signature.

If he chooses to veto the bill, the legislature can react quickly to override his veto. The special session ended early June 15 with a recess, not adjournment.

‘‘We’re in recess. We’re ready to come back anytime,” Miller said.