BGE settlement settles little -- Litigation and Regulation, Cal...

As the governor who promised to stop the BGE rate increase and got hammered for failing, Martin O'Malley surely must be happy to get something back for customers.

[Burned Out]

Thanks for your skepticism. Please keep public pressure on these guys through your columns. We poor(er) consumers have little recourse in our dependence on gas and electricity in our daily lives, and when the great powers-that-be in their infinite wisdom saw fit to deregulate "energy" in 1999 they basically gave the only player in town, BGE, free reign to stick it to its customers, in that it was (and still is) a de facto regional monopoly in an economic sector, public utilities, that has significant barriers to entry for competitors.

So what's a consumer to do: buy solar panels, windmills? We have few affordable alternatives.

[Randy]

Wait until they privatize water.

[Matthew-Daniel Stremba]

And which one of these realities---O'Malley's yesterday "deal" wrapping things up including core unresolved issues OR Constellation's slippery getting away with making BGE's electric cost its customers way more than the market rate---which will we Marylanders remember next time gubernatorial elections roll around?
MDS

[Burned Out]

Randy wrote:

Wait until they privatize water.

Wait until they privatize air!

[lll]

This is fair, it would have been easier if BGE would still have owned everything instead of splitting in 1999 deregulation. Our rates would be a lot cheaper if BGE still ran everything .

[falling circulation]

Nice coloumn but Jay the governor says everything is fine and he is doing his best for the working families of MD. The Baltimore O'Malley editorial board parrots this on a daily basis.

BTW,
Have you looked at job postings for the Examiner? I hate to lose your column when the Baltimore O'malley goes belly up.

[David Spears]

It is a sad day when Marylanders' no longer have the backbone to stand up and say hell no we are taking this sitting down. When your utility cost reaches as much as ones mortages or rent payment then maybe the citizens will stage protests as a collective group aginst these greedy uncaring rip-off artist and say (we want you out of our State.)
Why can't the State Government force these people out and take over the Maryland utility system. If they wanted your land or your house they would claim emanate-domain.
and take it. Therefore let the State of Maryland take over its utility system for the good of the people. I wouldn't care if you raised my taxes to buy these blood suckers out, but let do somthing and do it now!

[Marylander]

David,
Under emminent domain you would have to pay fair market value which would bankrupt the state and who would run it, it is extremely complex.

I believe the PSC supervised and approved the auction. Therefore it was legal, within the paramaters of FERC and MD deregulation.

What about the other two thirds of MD? Sun and Owe Malley don't seem to care. Allegany deregulates next year.*ssho*es

[Marc]

Money greases the squeaky wheel, and while there is no shortage of corrupt officials, there is a shortage of committed people willing to do whatever it takes to make things right. Take to the streets, show the uber rich that you can't take it with you.

[SAM]

I hate my electric bills as much as anyone. They're much higher than lsat year & I've insulated my house to the hilt, have new energy efficient windows, keep the thermostat set at very conservative levels, etc., etc., etc. all to no benefit. However, and I know I may be grossly misinformed, but weren't we payin below market rates these past few years and only now are paying the same rates as other markets? Anyone noticed the price of gas at the pump? Cost of food and most anything that energy costs affect? Tough times but maybe this country can start really looking at ways to cut our dependence on fossil fuels. Good grief, I remember this being talked about since the 1973 oil crisis and what significant steps have we taken since then? On the other hand, I acknowledge that Exxon's profits (profits, mind you, not sales) are in the billions of dollars and Mr. Hancock makes a case that our energy might not have been purchased at the wholesale level at the best prices. Hmm... this is complicated but all I'm suggesting is that while easy to demonize, perhaps there are other factors at play.

[Kenjin]

It’s trite but true - voters get the government they deserve.

Too bad Mike Miller hasn't gotten what he deserves - a firing squad - for defrauding ratepayers of billions and billions, forever and ever.

Actually, I'm opposed to capital punishment on moral grounds, so life in prison might serve as an appropriate deterrent to massive legislative malfeasance like his.

Oh wait a minute, like kings of yore Miller is infallible according to the ancient principle of sovereign immunity.

You see in the final analysis we ratepayers are ultimately responsible, as victims, for our own rape by CEG.

[Agree With Sam]

Sam - your comments are spot on. The prices for oil, coal & natural gas are through the roof right now. If we want to reduce the costs we pay for goods that are produced by these fuels, we need to reduce consumption...Or find more. Currently natural gas is high because demand has been high and supplies/production/imports are low. The government is expecting supply to outperform demend this year mainly from increased LNG imports but so far this year that has not happend. The global price for natural gas is higher than the US price so shipments are going to other countries. I have read that we are off as much as 40% YTD on LNG imports.

Bottom line, we are in a time when fuel prices are high and it is our responsibility to do our part to help bring those costs down by cutting back on consumption.

Many say that if BGE was re-regulated we would be paying less per kWh...How do you know?? Can they somehow produce electricity cheaper than everyone else in America? Nothing comes for free - we will pay for it somehow.

[Johnnie]

great article by the Sun's BEST! Keep it up. Tough year for MOM....Hillary, BGE, Spitzer (don't look now MOM) special session. 1 and done for MOM. Dont worry, u little opportunist, your dad-in-law will take care of landing u another job like he has since u "fell in love" with his daughter. He's a male version of Hillary.

[In The Know]

For any commercial customers...

All MD utilities go to auction next week to purchase Type I non summer rates beginning in October 2008. Larger Type II customers will be at auction for summer rates (June-Aug) as well.

Commercial rates for Type I summer customers were auctioned in January/February and were posted on the applicable utility web-site weeks ago...The results are not good for consumers.

As example - If you are a Type I GS TOU customer in the BGE service area you will be paying over 17 cents per kWh during the On-Peak hours from June through September.

The results of next weeks auction will be based on where fuel prices are at the time...HIGH!

Do yourseld a favor - find another supplier that will compete for your business!

[In The Know - Sometimes]

Correction - the auction begins 4/14 and does include Residential.

Residential and Type I October Contracts
Type II June Contracts
Issue any revisions to bid block targets Apr 14, 2008
Price proposals due – Residential, Type I & type II Apr 21
Bid assurance collateral due Apr 21
Award bids Apr 21
Execute FSAs, transactions and DOA Apr 23
Execute Guaranty Agreement, if applicable Apr 23
Public hearing for Commission’s review of results Apr 24
Commission approval of transactions Apr 25
If necessary, issue reserve procurement bid block targets Apr 28
Reserve procurement price proposals due May 5
Reserve procurement bid assurance collateral due May 5
Award reserve procurement bids May 5
Execute reserve procurement FSAs, transactions and DOA May 7
Execute Guaranty Agreement, if applicable May 7

[Paul in Perry Hall]

The amazing thing -- in February 2006 there were at least a half dozen electric providers waiting to jump in as Central Maryland went off the artificially low rate caps. Unfortunately, Mike Miller and Martin O'Malley chose politcal haymaking over the people of Central Maryland. The result is any electric supplier with an ounce of brains has seen how both BGE and Constellation have been treated by the administration and the legislature and would not be caught dead making a real go of it in this unstable regulatory environment. Had they let the rates go up (as they -- the Democratic Machine in MD -- had agreed to in 1999, there would be full scale competition in Maryland now. Maybe one day they will learn not to meddle in markets and focus on proper public policy.

[Questionauthorit y]

SAM wrote:

I hate my electric bills as much as anyone. They're much higher than lsat year & I've insulated my house to the hilt, have new energy efficient windows, keep the thermostat set at very conservative levels, etc., etc., etc. all to no benefit. However, and I know I may be grossly misinformed, but weren't we payin below market rates these past few years and only now are paying the same rates as other markets? Anyone noticed the price of gas at the pump? Cost of food and most anything that energy costs affect? Tough times but maybe this country can start really looking at ways to cut our dependence on fossil fuels. Good grief, I remember this being talked about since the 1973 oil crisis and what significant steps have we taken since then? On the other hand, I acknowledge that Exxon's profits (profits, mind you, not sales) are in the billions of dollars and Mr. Hancock makes a case that our energy might not have been purchased at the wholesale level at the best prices. Hmm... this is complicated but all I'm suggesting is that while easy to demonize, perhaps there are other factors at play.

Interesting thoughts. I heard a woman on TV say"Where was BGE when my husb lost his job?" Sorry, but I had to chuckle...where was Safeway? Where was Philips Morris (you know people keep buying smokes when prices go up)? Where was GM? Where was Countrywide? People are amusing...

[Questionauthorit y]

Agree With Sam wrote:

Sam - your comments are spot on. The prices for oil, coal & natural gas are through the roof right now. If we want to reduce the costs we pay for goods that are produced by these fuels, we need to reduce consumption...Or find more. Currently natural gas is high because demand has been high and supplies/production/imports are low. The government is expecting supply to outperform demend this year mainly from increased LNG imports but so far this year that has not happend. The global price for natural gas is higher than the US price so shipments are going to other countries. I have read that we are off as much as 40% YTD on LNG imports.
Bottom line, we are in a time when fuel prices are high and it is our responsibility to do our part to help bring those costs down by cutting back on consumption.
Many say that if BGE was re-regulated we would be paying less per kWh...How do you know?? Can they somehow produce electricity cheaper than everyone else in America? Nothing comes for free - we will pay for it somehow.

Refreshing when someone intelligent actually posts...

[Realist]

"Reasonable for a politician, maybe." More like reasonable for everyone. How do you not see that a settlement is the best option in this case? If you wanted to start a complaint and subsequent investigation and hearing at FERC that would take at least a year to do and then whatever the decision would be, that would get appealed at the DC Court of Appeals and take another couple years. I know you want to investigate "the core of deregulation," but that has essentially already been done here and across the country, Jay. Maryland wasn't the only state that deregulated and then realized it wasn't all it was cracked up to be, and you seem to be looking at this in hindsight, which is much different than the view held in 1999. I have no problem with a populist article, but you need to recognize when something good has been accomplished and I think your article detracts from that too much.

[Lets look at the state]

I have no confidence that the state is looking out for me.

Lets look at tax we pay for electricity. Unless I am reading the bill wrong, the tax we pay is 6% of the total cost from supply and delivery. The costs for supply, as we all know, are approaching doulbe what we paid 3 years ago. Does this mean that the state is collecting double as well...No...More than double since the SUT went from 5% to 6%. This state constantly bashes BGE & CEG for high rates but they are taking our increased tax dollars to the bank instead of finding ways to promote competition. How about a tax reduction to 3%...That should be close to what we were paying 3 years ago.

I would love to see tax totals from electricity for the last 10 years.