Deregulation left BGE customers with higher costs, PSC says

Full story: Baltimore Sun 26
State utility regulators told lawmakers today that an agreement to move to deregulation in 1999 saddled Baltimore Gas and Electric customers with $1.15 billion in costs in exchange for rate cuts that amounted ... Full Story
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Dan in B-more hon

Plymouth, MN

#1 Jan 17, 2008
Regulation created the problem in the first place.
Duh

Baltimore, MD

#2 Jan 17, 2008
"Deregulation left BGE customers with higher costs, PSC says"

No sh*t!
rzig

Hartford, CT

#3 Jan 17, 2008
It costs legislators little to be wrong and make unprofitable deals.
BGE had much to lose and gain by making a bad deal. So is it any suprise that BGE got the better end of the deregulation arrangement.
We should not blame "deregulation". We should blame corrupt and arrogant legislators for signing such a poorly crafted law.
Dave

Baltimore, MD

#4 Jan 17, 2008
Well, we all know that Bob Erhlich caused the 75 % rate increase by passing legislation to deregulate when he was the Governor in 1995. Quoted Martin O'Malley, Michael Busch, Michael Miller, the Democratic GA, and the blind loyal Democrat voters. Obviously not true, but I bet if the liar and dishonest O'Malley thought he could sell it, this would be his response. Well, Democrat voters see how those you blindly elect,just based on their party affiliation,have caused. Sky rocket BG&E rates (they aren't finish raising them)and the largest tax increase in History pushed through in a not required Special Session. And, O'Malley and the other dishonest, corrupt, arrogant Democrats in the GA aren't finished yet. They are going to raise tax on alcohol, and wine to take more money out of the working man's pocket. Their justification for raising alcohol/wine tax .... because it hasn't been done recently. Great reason, and shows you their arrogance. I hope every Marylander sees these corrupt politicians for what they really are, and vote them out of office. Especially, the free loading O'Malley family. Having trouble getting home today in the weather ..... just think O'Malleys have State Troopers driving them in taxpayers 4 wheel drive (expensive) vehicles at your tax expense. Bet none of the O'Malley free loaders will experience trouble getting home and to other things.
Frank

Baltimore, MD

#5 Jan 17, 2008
Please tell me the PSC has been working on more thant this?

Didn't we already know this? Well, we did know it, but the Democrats had to spend a year blaming it on Ehrlich so they could get their "boy" elected.

If O'Malley cannot come up with better things for these people to do - then he needs to go as well.

When is enough, enough?
MarkP

United States

#6 Jan 17, 2008
The liberal democrats in Maryland will never quit blaming others for their stupidity because the brainwashed voters in Maryland forget the truth after having the lies pounded into their brains daily by O'Malley and his bunch. We had a great Governor in Robert Ehrlich but the people of Maryland keep believing the lies and pie in the sky promises of the democrats. Look at the millions it has cost us and the BILLIONS of dollars it will cost us. Another article in the Sun today is about the millions we have overpaid on the "market rates" that BGE and Consellation Energy manipulated to be higher. When will people learn???
Dave and Frank

Owings Mills, MD

#7 Jan 17, 2008
I agree with you both 100%. What a load of crap brought to you by pretty much one party Maryland Government. Ehrlich must be dying watching the little he was able to get done destroyed by O'Malley in a year.

Maryland "A great place to live, if you can afford to stay."
cate58

Sykesville, MD

#8 Jan 17, 2008
I am so angry over the effects of deregulation, and the unwillingness of our current state government to admit they made a mistake and undo what has been done. How? Well, why not start a truly public utility. I'd rather pay higher taxes in the short run for a publicly owned utility which has lower rates over the long term than the current situation. What about using eminent domain to buy what's left of BGE and Constellation Energy? Sounds like a best use for casino revenue to me.

On another note, the projected need to increase the amount of power available over time which will result in higher costs to me almost immediately (according to the Governor's plan) infuriates me. I don't need more power - I'm already conserving. It seems to me that increased power is only necessary to support economic development efforts like those associated with BRAC. Well, let businesses pay for the expansion, not residential consumers.

I will not vote for the current governor again if he continues down this path, and I've been a loyal Democrat all of my life.
Mark

Rosedale, MD

#11 Jan 17, 2008
Miller and Busch will just brush this aside.

I can still picture the file film that the TV stations ran of the signing of the deregulation bill.

Miller was all smiles.

How much time and money was wasted for them to tell us that deregulation screwed it all up?

As stated above, it's astonishing that O'Malley could blame the rate hikes on Ehrlich, run on stopping them, and then just ignore them.

This state is full of morons.

Sad, but true.

“Don't protect me from me!”

Since: Jul 07

Vienna, VA

#9 Jan 17, 2008
Dave and Frank wrote:
I agree with you both 100%. What a load of crap brought to you by pretty much one party Maryland Government. Ehrlich must be dying watching the little he was able to get done destroyed by O'Malley in a year.
Maryland "A great place to live, if you can afford to stay."
And if you can afford to stay, you're probably smart enough to leave.

“Don't protect me from me!”

Since: Jul 07

Vienna, VA

#10 Jan 17, 2008
cate58 wrote:
I am so angry over the effects of deregulation, and the unwillingness of our current state government to admit they made a mistake and undo what has been done. How? Well, why not start a truly public utility. I'd rather pay higher taxes in the short run for a publicly owned utility which has lower rates over the long term than the current situation. What about using eminent domain to buy what's left of BGE and Constellation Energy? Sounds like a best use for casino revenue to me.
On another note, the projected need to increase the amount of power available over time which will result in higher costs to me almost immediately (according to the Governor's plan) infuriates me. I don't need more power - I'm already conserving. It seems to me that increased power is only necessary to support economic development efforts like those associated with BRAC. Well, let businesses pay for the expansion, not residential consumers.
I will not vote for the current governor again if he continues down this path, and I've been a loyal Democrat all of my life.
A truly public utility sounds like a great idea until you recognize the fact that it would be rund by the same crowd of crooks and incompetents that find a way to spend our money and not deliver results.

I have no faith in Government's ability to do such things well.
Liars in Office

Washington, DC

#12 Jan 17, 2008
I agree- I can't believe the loyal faithful elected O'Malley because he would reverse the deregulation and improve the state. 1 year in our energy costs are ridiculous, state taxes are the highest in the nation, schools are terrible -oh, and did you hear about his "modest" budget, where he cut the funding for schools? I'm so glad he's using state funds for trips to Ireland, as well. With all of this pillaging, I'm sure he needs some time off to relax. Maryland needs to get real and stop living the party line. Ehrlich was a good governor- maybe not great but never raped the people of Maryland like O'Malley is so willing to do.
carmanjw

Myrtle Beach, SC

#13 Jan 17, 2008
Paul

You might want to look at and give some equal time to CEG's analysis of the PSC's biased report as noted in the following link:

http://news.morningstar.com/news/ViewNews.asp...

CEG's analysis shows the bias of Larsen et al who want to "cherry pick" the deregulation effort and to ignore already litigated results of the MGA's failed deregulation attempts. You usually tell the whole story; lets set this record straight.

“Don't protect me from me!”

Since: Jul 07

Vienna, VA

#14 Jan 17, 2008
carmanjw wrote:
Paul
You might want to look at and give some equal time to CEG's analysis of the PSC's biased report as noted in the following link:
http://news.morningstar.com/news/ViewNews.asp...
CEG's analysis shows the bias of Larsen et al who want to "cherry pick" the deregulation effort and to ignore already litigated results of the MGA's failed deregulation attempts. You usually tell the whole story; lets set this record straight.
Are you saying that Larsen is biased? Say it ain't so! After all, he's a professional regulator, which means he is good at telling people how to do something he has never done.
Van Scoyvey

Jessup, MD

#15 Jan 17, 2008
This same deal was done in more than 20 states, with the same results: ratepayers forked over billions in "stranded costs" to the utilities for property the ratepayers already owned--or should have owned. The deal was inked by states with Republican and Democratic governors, and Republican and Democratic legislatures alike. It was dreamed up by economists--who more than even regulators and politicians have no connection to the real world. These economists were mostly of the right-wing persuasian, many of them employed by companies like Enron. None of them, it seems, understood the concept of "line loss" or Ohm's Law, which in fact governs the electons transmitted through copper wires. All of this is in the public record, for all to see. This was not an O'Malley deal or an Ehrlich deal--it was a deal done by people in many states who believed the fairytale of market fundamentalism, and who did not understand either basic economics of basic physics. Best to stop blaming each other and get this scam undone.
Bulb Man

United States

#16 Jan 17, 2008
So whats the scoop. Did BGE customers pay for cfl bulbs on their bills like people of Western MD were going to, til they found out about the deception by Allegheny Power and protested until it was rescinded by Allegheny Power? Or not?
smokestack

Waldorf, MD

#17 Jan 17, 2008
Until there is revolt in the streets we the people are right where the Government wants us,
Bent over and powerless.
Joe

Towson, MD

#18 Jan 17, 2008
Van Scoyvey wrote:
This same deal was done in more than 20 states, with the same results: ratepayers forked over billions in "stranded costs" to the utilities for property the ratepayers already owned--or should have owned. The deal was inked by states with Republican and Democratic governors, and Republican and Democratic legislatures alike. It was dreamed up by economists--who more than even regulators and politicians have no connection to the real world. These economists were mostly of the right-wing persuasian, many of them employed by companies like Enron. None of them, it seems, understood the concept of "line loss" or Ohm's Law, which in fact governs the electons transmitted through copper wires. All of this is in the public record, for all to see. This was not an O'Malley deal or an Ehrlich deal--it was a deal done by people in many states who believed the fairytale of market fundamentalism, and who did not understand either basic economics of basic physics. Best to stop blaming each other and get this scam undone.
Right On, Van...Ilove these lock step posters who blame O'Malley for a deal shoved at us when he wasn't even mayor, much less Govenor yet, he tried to unwind it, but the same crooks basically tore up the tracks behind them, this bunch was inspired by the same "free-market" horse manure spreaders that sprung Enron (Bush's number one contributor) on Calif when I lived there. Utilities are a public trust, their largest projects and infrastructure funded usually by public bonds, this is forgotten because we live in a country where people ignorantly fear their government when the government should in fact fear its people.

“Don't protect me from me!”

Since: Jul 07

Arlington, VA

#19 Jan 18, 2008
Joe wrote:
<quoted text>
Right On, Van...Ilove these lock step posters who blame O'Malley for a deal shoved at us when he wasn't even mayor, much less Govenor yet, he tried to unwind it, but the same crooks basically tore up the tracks behind them, this bunch was inspired by the same "free-market" horse manure spreaders that sprung Enron (Bush's number one contributor) on Calif when I lived there. Utilities are a public trust, their largest projects and infrastructure funded usually by public bonds, this is forgotten because we live in a country where people ignorantly fear their government when the government should in fact fear its people.
I don't blame O'Malley for the deal and I never did. However, I do blame him for deceiving his sheep into believeing that he would do something when MOM and many of us knew damn well that he couldn't and wouldn't do anything.

This and the pretend "structural deficit" as well as his 7 years as Mayor lead me to conclude that O'Malley is incapable of being straightforward and honest about anything.
Skipper

Silver Spring, MD

#20 Jan 19, 2008
Anyone who blames one party or the other for deregulation is an idiot. Both parties bought into the theory put forth by idiotic economists like Professor Kahn. His theory is that competition will keep prices down. So where is the competition for electricity? For natural gas? Certainly not anywhere in Maryland.

Well, you reap what you sow. Deregulation of energy was bound to fail; and prices were bound to rise. What deregulation brought was the sale of generators by the utilities (which brought them massive profits) for enormous amounts to 3d parties who had to raise rates to recoup their costs. It also brought brokers, middlemen, etc., all of whom had to make a profit. So who pays for all this? Why you and me, of course.

What we need is independent legislators who are smart enough to see thru the garbage put forth by idiots like Kahn.

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