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PJM - Maryland Governor Looks for New Ways to Push Re-regulation Measures
By Kevin Stafford, Market Manager, PJM & MISO, GDF SUEZ Energy Resources NA
Governor Martin O’Malley announced he
would not introduce an energy re-regulation bill during the 2010
session of the Maryland General Assembly.
Legislation
backed by O’Malley to re-regulate energy markets cleared the
Senate last year, but died in a House committee.
This
year, the governor said he plans to focus on other issues that
resonate with Maryland voters – including home foreclosures and
job creation.
However, although the issue may be off the
legislative table, O’Malley is pushing for re-regulation through
a different avenue – the Maryland Public Service Commission. The
commission is considering two cases in which it could order
utilities to build new generation.
O’Malley has filed
comments with the commission urging it to order the new
generation, the costs of which would be recovered through a
wires charge from all Maryland electricity customers.
This is essentially a new way to have customers pay for
additional generation at what industry experts and consumer
groups view as a poor time for a rate increase.
Additionally
under this approach, Maryland commercial and industrial
customers will bear the brunt of the increase – subsidizing mass
market customers.
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