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WBAL radio
Thursday, June 11, 2009
Click to listen: Sen. Jim Rosapepe, who co-sponsored legislation to re-regulate electricity, reacts to today's decision.
http://wbal.com/apps/news/templates/story.aspx?articleid=29164&zoneid=2
PSC Rules EDF Deal Will Affect BGE Rates
Robert Lang
The Public Service Commission has ruled Constellation Energy must get approval from state regulators before it can sell nearly half of its nuclear assets to the French government owned EDF.
The company had argued state approval was not necessary, because its nuclear energy business is not regulated by the state.
However, in a 36-page ruling, the commission said that the deal would have a direct impact on Constellation's subsidiary BGE, and the rates customers pay.
The commission does not say whether the deal should proceed.
The commission has ordered all parties to appear next week for a status conference.
The company announced the deal with EDF in December, after it abandoned a takeover of the company by Warren Buffett's Mid-American Energy.
EDF is Constellation's largest shareholder.
Company officials say they will have more to say on the decision later today.
A pair of state senators want the PSC to tie rate cuts for BGE officials to any approval of the deal.
Prince George's County Democrat Jim Rosapepe and Eastern Shore Republican E.J. Pipkin submitted their proposal to the PSC last week.
Rosapepe called today's decision, "great news for consumers."
"It clarifies an issue that evidently Constellation was unclear about which was that the public needs to be protected and the PSC has the jurisdiction."
Governor Martin O'Malley issued the following statement on the decision today from his office:
“The Public Service Commission’s unanimousruling today confirms the State’s longstanding position that EDF’s $4.5 billion acquisition of Constellation’s nuclear assets would provide the French energy company the power to exercise ‘substantial influence’ over Constellation Energy.
“The ruling now triggers a broader inquiry by the PSC to determine whether the proposed CEG/EDF deal is in the public interest.
“I continue to have full confidence in Chairman Nazarian and the members of the PSC to review this proposed deal with a mandate to protect BG&E ratepayers, first and foremost. I also appreciate the PSC’s willingness to conduct this inquiry in an expedited manner to accommodate Constellation and EDF’s anticipated closing date this fall.
“Although the State’s position on substantial influence is clear, it should in no way be interpreted as our opposition to the EDF deal. To the contrary, I believe that this partnership could help secure a more stable and cleaner energy future for our state and our nation. But the public interest must be addressed as part of any deal in order to ensure that ratepayers and the utility are protected.”
WBAL radio
Tuesday, June 2, 2009
Click to listen: Senator E.J. Pipkin is among those who wants conditions applied to the state's approval of the Constellation Energy deal with EDF.
http://wbal.com/apps/news/templates/story.aspx?articleid=28535&zoneid=2
Lawmakers Want Conditions On Constellation-French Deal
Robert Lang
A pair of Maryland lawmakers is looking to stop the deal between Constellation Energy and a French company, unless there is something in it for the consumer.
Democratic Senator Jim Rosapepe and Republican Senator E.J. Pipkin want state approval Constellation's Energy's proposed sale of some of its nuclear operations to a French company tied to BGE customer rate relief.
The senators have detailed their concern in a letter sent to PSC Chairman Douglas Nazarian.
"We want to see a rate reduction...long term contracts that could that could lead to a lower cost for ratepayer. We think that's the least of what could be accomplished in this transaction," Pipkin told WBAL News.
The senators are asking the PSC to require Constellation to sell its nuclear energy to BGE at a regulated rate. They say the electricity generated should meet the needs of BGE ratepayers, before it is sold to anyone else. Pipkin believes this requirement would cut residential customer rates by 10%.
Company officials have not commented on the senators' letter.
However, in testimony in April before the PSC, company officials maintained the deal with EDF (Electirictite de France) wouldn't affect BGE or its customers.
Pipkin doesn't buy the company's argument.
"Who's kidding who here? This all has an impact on BGE rate payers," Pipkin said.
Pipkin and Rosapepe also want the PSC to force Constellation to cut the $1.1-billion payment to Warren Buffett's Mid- American Energy, for abandoning a merger last year.
Pipkin believes the lower payment to Mid-American would help boost the price of Constellation stock.
Constellation wants permission to sell just under half of its nuclear operations to EDF.
The PSC is due to rule on the deal in the next week.
WBAL radio - The Bruce Elliott Show
Tuesday, March 10, 2009
Click to listen: Senator E.J. Pipkin and Tom Firey of the Cato Institute joined Bruce Elliott deliberating the issues of reregulation.
Click to listen: Sen. Jim Rosapepe joined Bruce Elliott stating his case for reregulation.
Click to listen: Part 2 of the discussion with Bruce Elliott and Sen. Jim Rosapepe on reregulation.
http://wbal.com/apps/news/templates/?a=22905&z=37
Maryland consumers recognized long ago that the state's deregulation of electric rates in 1999 has been a catastrophe for us and our state. In a failed market where electric generators earn monopoly profits and no new capacity has been added since 1999, the right answer is reregulation.
Regulating electric utilities worked for more than 100 years in Maryland and works in most states which never deregulated. That's why we've drafted SB 795 / HB 1312 to end deregulation in a prudent way which protects consumers.
The co-sponsors of the bill, Senator E.J. Pipkin (a Republican) and Jim Rosapepe (a Democrat), both joined Bruce Elliott on The C4 Show this week to discuss the possibilities of reregulating utilities.
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