Prospects Dim for Electric Re-regulation 4/09

Expressing frustration with Governor O'Malley's handling of energy issues, Delegate Ruth Kirk, D-Baltimore City, summarized the views of many at a House Economic Matters Committee hearing on electric re-regulation when she said, "If I can help it, I'm going to make sure this bill does not get passed." Baltimore Business Journal, March 27, 2009 (click here)

With seven days left in the legislative session, prospects look dim for re-regulation this year. 

Why?  Legislators understand that re-regulation is a long-term fix.  Constituents want a short-term fix - they want the immediate rate relief that was promised by candidate O'Malley during the 2006 campaign (click here)

When the Chairman of the Public Service Commission (PSC), Douglas Nazarian, testified before the Senate Finance Committee, he emphasized that this bill would not provide any immediate relief to electric rates.  It is only provides a mechanism to give the PSC the ability to require companies to construct new generation facilities that could improve Maryland's long term prospects for energy rate relief.

But O'Malley has a lot of political capital invested in the passage of the Administration's bill (Senate Bill 844 - Public Service Commission - New Electric Generation Facilities - Rate Regulation and Contracts).  In a speech before the Maryland Association of Counties last summer, O'Malley promised that solutions to Maryland's energy crisis would be his priority during this legislative session. (click here)

Unfortunately, the session was almost one-third over before he introduced a bill.  With only six weeks left in the session, O'Malley issued a press release stating, "Today, we announce that the days of blind faith in broken, deregulated markets are over in Maryland."  click here.  While the Senate bill passed on March 30th by a 27-19 vote, House legislators may think differently.

Opinions vary, so we offer this reading list for anyone interested in learning more on this topic:

Barry Rascovar - The Gazette - Caution: Dangerous Road Ahead - http://www.gazette.net/stories/03272009/poliras154750_32476.shtml 

Jay Hancock - Baltimore Sun - Rushing into Energy Legislation Could Produce Nasty Shock - http://www.baltimoresun.com/business/bal-bz.hancock11mar11,0,4001160.column