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Constellation, state to settle lawsuits for $187M in ratepayer relief
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Related Topics: BALTIMORE
BALTIMORE (Map, News) - Constellation Energy Group and the state have reached a settlement which would end their ongoing feud over the 1999 deregulation of Maryland’s electricity industry and provide a one-time $170 credit to Baltimore Gas and Electric Customers, Constellation announced this morning.
Gov. Martin O’Malley’s office had no comment on the settlement, which requires approval by lawmakers before the General Assembly’s current session ends on April 7. A news conference was scheduled for this afternoon.
Under the agreement, the state will reaffirm the 1999 deregulation settlement and end months of investigations by its Public Service Commission. In return, BGE residential customers will receive the one-time credit, totaling $187 million, and will no longer be liable for costs associated with the eventual decommissioning of the Calvert Cliff Nuclear Power Plant.
“This agreement would provide far-reaching benefits for our customers, our shareholders, and the State of Maryland,” Mayo Shattuck, Constellation president and CEO said in a statement. “All parties gain meaningful benefits in this carefully crafted settlement, and the overarching value is a return to regulatory stability and normalcy.”
The settlement resolves lawsuits filed by the state and Constellation against each other earlier this month over $386 million the company was ordered to credit to ratepayers under 2006 legislation. It would restore all but $40 million of those credits.
The disagreement between the two sides heated up in January with a PSC report concluding that deregulation had cost ratepayers $1.15 billion but saved them just $315 million. BGE claimed that costs totaled just $155 million but savings came to $1.8 billion. The report sparked a round of contentious hearings and back-and-forth between the two sides, culminating in the lawsuits.
The agreement would also give the PSC greater oversight to examine the records of any Maryland electric utility. Constellation said it would work to develop a new nuclear power plant at Calvert Cliffs before its other sites. The company had threatened to build a new plant in another state following the PSC report.
acahall@baltimoreexaminer.com
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Examiner Reader said:
I smell a Payoff!!!!!!!!!!
4 agree | 5 disagree
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richard f said:
Thank you Larry,Moe,& Curly another great move my our leaders.......................NOT !
3 agree | 4 disagree
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Dick Fitzcharles said:
This entire mess was precipitated by Miller and Bush back in the Nineties with their push for deregulation of Utillites, they new full well going in what the end result would be and it has come to pass. I say forget the lousy $170 rebate as I have to pay my $600. electric bill which was only $250 a year ago. Regulate these thieves and lets rid ourselves of the Pirates in Annapolis. This rate increase was their first priority after O'Malley was elected, and then they waited for the voters to cool down for a year before they beat us up for more taxes, wake up citizens! before we have nothing left.
5 agree | 3 disagree
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John Clark said:
Is there no end to O'Malley's lies? Examiner, you are getting to be as bad as the Sun with slanted stories peppered with O'Malley spin. This is a bad deal. O'Malley knows it. It's your job to objectively report what the public stands to lose by taking this deal, like no more PSC investigation into the glaring conflict of interest bewtween Constellation and BGE. The legislature should reject this bad deal. It will make 1999 deregulation forever worse not better.
16 agree | 3 disagree
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Examiner Reader said:
"I find it pretty outrageous and appalling" that Governor O'Malley would sell Maryland residents out, repeatedly, and insult them with this BS minor appeasement payout. I know you have never fought for anyone but yourself, Mr. Governor, but could you just this once think abou the rest of us first? Please. I'm sure you will still receive enough money in campaign donations.
7 agree | 4 disagree
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Examiner Reader said:
As a BGE "ratepayer", I am 100 percent willing to keep the amended bill, or scratch the so-called settlement altogether and continue the court case. That miniscule, one-time, payout to ratepayers is an insult considering the Constellation rate theft and the already 72 percent increase, as well as the impending 9 percent increase in June. I'll take my chances in court!
3 agree | 4 disagree
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Examiner Reader said:
The democrats can't undo what the democrats did in 1999. Everything the democrats are doing now is simply making it even worse for the citizens of this state. Frankly, as a stockholder, I would recommend that Constellation Energy pack up and leave Maryland, leaving the democrats holding the bag. Perhaps then the voters of this state would wake up.
7 agree | 3 disagree
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Examiner Reader said:
if the yo'malley plan passes, several years from now maryland will have rolling blackouts. utilities will build generation plants where they can receive the most return on the investment. constellation will build the palnts in surrounding states, give those states the jobs and sell the power to maryland. another flawed yo'malley plan. he must be drinking too much of katie's bath water.
12 agree | 4 disagree
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johnn said:
i dont like omalley and i dont believe anything he says does or belives in,as far as im conserned he is the worst govenor in the world
10 agree | 4 disagree
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Examiner Reader said:
Ratepayers will recieve $346 M in credits, not pay that amount.
4 agree | 4 disagree
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Examiner Reader said:
It makes me laugh when people use terms like Constipation Energy, Hitlery, Oblahma, McCon, etc. It just shows that the person has moved past the maturity of 7-year-old name-calling. If the 5:34 7-year-old read the press release, he'd find that while the customers get $187 million, they'll still have to pay $346 million. So, maybe, all the legal experts were right when they said the governor didn't have a legal leg to stand on.
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Examiner Reader said:
Who would have thought a settlement will be reached? What did the Gov have on BGE and Constipation energy. Guess we will never know?
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avid reader said:
Just another O'Malley rip off tactic. he is the worst governor in America
8 agree | 3 disagree
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Examiner Reader said:
So much for O'Malley's pre election promises to lower our bills. When will we learn that he is just another lying politician that will say anything to get elected. To the ones who voted for him, hope your happy.
9 agree | 4 disagree
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Reader said:
It is not unclear who will pay this tax! Will pass it on to the consumers. Leopold is nt an economic fool, he will pocket the revenue and not share. Then comes teh court date for Leopold who has contats in the press you would not beleive because he does not share.
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Examiner Reader said:
It is not unclear who will pay this tax! Constellation It is not unclear who will pay this tax! Constellation Energy will pass any tax increase on to consumers. Leopold is an economic idiot and this tax will not solve his slumping revenue problem, but exacerbate it. Cut government spending and taxes. That will generate more tax revenue as the economy is stimulated.
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Examiner Reader said:
Can we, the oppressed citizens of the Democratic People's Republic of Maryland (DPRM) sue O'Malley & his cronies for being idiots & allowing this stuff to happen? 1st he blames the rate increases on Ehrlich in the election, forgetting of course that Glendening & his cronies did this crap w/ their votes in '99. He will fix it if you elect him. So the voters of Baltimore City, PG & Montgomery Counties elect him & now everyone in MD is suffering. Are there really still people who were hoodwinked into voting for this guy who still believe/believe in him? Still support him & are apologists for him? He makes Glendening look like he was a good governor.
10 agree | 5 disagree
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richard f said:
That's funny I find the same thing of O'Malley.Maybe he can go whine to his Father-in-law.Oh that's right he retired,I know he can whine to Busch and Miller and the YES MEN will tell him what a good job he's doing.HA!
6 agree | 5 disagree
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Examiner Reader said:
Why do I feel Omalley pays someone 150K a year to disagree w/ people on these comment pages. No one in this state supports Omalley except people that fear him and/or on his payroll. FACT!
14 agree | 5 disagree
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Examiner Reader said:
9:38 I hope the voters of Omalley get all that is coming to them. I love when they commplain about bills. Maybe next time they will be careful who they vote for. That will never happen because Baltimore City is going to vote for another Omalley feat they lose their free handouts. PG and Montgomery county will do the same thing in fear they will lose their government jobs and have to do real work Suffer hard and suffer long you Demoncrats deserve it
11 agree | 7 disagree
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Examiner Reader said:
May Constellation be successsful in its lawsuit. After all, in 1999 the democrats slammed the citizens of Maryland. Interestingly enough, the people of Maryland didn't learn and voted for more of the same two years ago. Perhaps by the next election, the voters will wake up and see the light; but, you know, I wouldn't bet on it. Apparently, most Maryland voters are of very low IQ.
9 agree | 9 disagree
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Skip Loeffler said:
I wonder if O'Malley has a bumper sticker on his Black Suburban reading: Don't blame me, I voted for Ehrlich. Things are going to get much worse.
6 agree | 8 disagree
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avid reader said:
O'Malley is even worse than Glendening. That is hard to do.
9 agree | 7 disagree
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Examiner Reader said:
omalley is hoping this latest childish out burst from him will gloss over the fact that he is giving a huge raise to PSC chief larsen and then hiring 3 more people who are supposed to know something about electricity, to run the agency for larsen at a paltry price of 1/2 million a year. (that's dollars) I personally don't think this plan of owe'malley's will work. I think the people of this state have a longer attention span than he thinks. He started all this mess when he was mayor, saying he was going to fix constellation and filed a frivolous lawsuit.
20 agree | 15 disagree
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Examiner Reader said:
I find it pretty outrageous and appalling that Omalley takes more money from me to pay for someone elses insurance when I can barely feed my wife and two kids!!!!!
21 agree | 17 disagree
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Marylanders Voted in a Fool said:
Talk about "biting the hand that feeds you". Constellation pumps hundrens of millions of dollars into the state's economy and actually wants to expand here, increasing jobs and revenues into the state, but with knucklehead O'Malley, and his retarded buddies in Annapolis, Constellation is now thinking of moving to New York and expanding there. Way to go, O'Moron!
21 agree | 14 disagree
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the truth saves said:
"Outrageous" "appalling"?, sounds like O'Malley's talking about himself?
29 agree | 18 disagree
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Fed up with LEFTARDS said:
From the Washington Times. “But Mr. O’Malley said he was planning to defend residents “when companies like Constellation sue ratepayers to try to shift another $385 million on their backs on the same day that they report record profits.” I am no psyciatrist, but in this statement I see the boy removing himself and the Legislature from all blame in the lawsuit. I have not received any notice that I am being sued. Has any other “ratepayer”? Him saying that Constellation is suing the “ratepayers” and NOT the State of Maryland, ie. the State government, tell me he feels he has no responsibility in this whole mess. I believe now more than ever he is indeed in need of a mental evaluation and treatment.
20 agree | 16 disagree
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J.Lennon said:
Imagine there's no BGE.... even if I tried... Imagine all the people... struggling to to survive.
Ok, won't be that bad.
But when, not if, but WHEN Constellation spins off BGE, we're going to be in trouble. Constellation would have more freedom to be acquired and/or move wherever they like. And of course free up some nice vacant real estate in Baltimore City. Oh, and take those highly compensated brokers with them. I bet they'll go to Connecticut. Stamford seems like a logical place. Another location for Constellation might be Northern VA. Still on the 95 corridor; still close enough for Shattuck's wife to be a Ravens cheerleader, etc. Another potential location where Constellation will end up is in the Denver area. Makes more sense to be centrally located when on the world stage (allowing more day-time talk to China and still be close to NY and close enough to the European markets).
Say bye-bye. Thanks Owe'Malley.
16 agree | 16 disagreeVote on this comment: I agree or I disagree
Examiner Reader said:
MOM started this whole thing when he held his state of the state address and ran his mouth about the state possibly taking legal action against constellation. What an idiot he is. The right thing would have been to hold negotiation's behind closed doors and not make it public. mom drew first blood!!
22 agree | 17 disagree
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Examiner Reader said:
I dislike my BG&E bill as much as anyone, but I can't say I blame Constellation for what they are doing. If MOM and his bunch had spent as much time trying to fix the problems for all concerned as they did in making Constellation their political whipping boy, we may not be having this conversation!
28 agree | 16 disagree
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Examiner Reader said:
First the Glendening bunch screwed things up back in 1999. The the MOM/Glendening bunch screwed it up again in 2007. What happened to all those promises that MOM was going to save us from the evil electricity barons? He must have forgot in all the excitement of giving raisies and hiring more people to HIS PSC.
30 agree | 18 disagree
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Examiner Reader said:
Thank you MOM for promising to stop the BGE rate increase and blaming it on Erlich, I still have hope.
18 agree | 14 disagree
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Examiner Reader said:
What's outrageous and apalling is O'Malley in the State house.
37 agree | 13 disagree
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Fed up with LEFTARDS said:
"“We are confident that the General Assembly acted lawfully,” O’Malley said." Like it did with the WalMart bill? Like it did in firing the PSC? Like it did with early voting? The Politburo in Annapolis has no use for the law.
18 agree | 16 disagree
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Fed up with LEFTARDS said:
The boy gov is an idiot. This is HIS fault. Now it will cost US more for his pettiness. Just like the children of the state will pay for his pettiness for wanting to get rid of Dr. Grasmick. This boy is trouble for Maryland citizens. HE MUST BE STOPPED
29 agree | 19 disagree
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Examiner Reader said:
omalley can't really believe that the legislature acted lawfully. And he also knew that constellation was going to withdraw the "standstill" agreement. Man, this guy knows all, hears all, sees all, and feels all. He just doesn't know what to do with information. He's got no pinball.
27 agree | 20 disagree
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confused said:
I find it pretty outrageous and appalling that the same day (week) that it is announced we are going to get another BGE rate increase (some 5% or more) this summer, marty announces that he's giving PSC head a raise and hiring 3 more assistants to do larsen's job to the tune of 1/2 million a year. THATS watt I consider outrageous and appaling. This is OUR money you are spending, marty.
22 agree | 13 disagree
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Examiner Reader from Manchester said:
Marty "outraged", "appalled"? Maybe now he knows how the rest of us have been feeling...especially since his special session. Hey, give me an $80K pay raise, and I can "decline to comment", too. Heck, I'll decline for even less than that!
19 agree | 16 disagree
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Again said:
I guess they are not lining his pockets anymore?
27 agree | 16 disagree
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Examiner Reader said:
This is our state.
I'm appalled at O'Malley's stupidity.
What does this idiot think? That since Constellation is based in Maryland, a money-losing subsidiary should lose more money by offering discounts to Maryland residents? Such a requirement violates the Commerce Clause of the US Constitution. AND it violates Maryland law (transfer-pricing rules).
But since when do we expect O'Malley to know anything about the law? What an idiot. He should resign. Immediately.
O'Malley is ruining our state. This our state; not his.
20 agree | 15 disagreeVote on this comment: I agree or I disagree
Examiner Reader said:
I know people that are gas and electric traders for Constellation that are making 300,000 and 500,000 dollar bonus and buying million dollar houses yet people can afford to heat their houses. What is wrong with these here.
28 agree | 14 disagree
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Examiner Reader said:
O'Malley steals Constellation’s money and then complains when they seek to recover it. LOL. Hey Marty, just re-regulate. That will solve all the problems. Of course, there won't be enough power to go around, but it will be less costly. The people in Maryland are fools. They deserve all the economic pain that bad governent can deliver.
36 agree | 19 disagree
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ann said:
Just wait until the new auction bids come in for electricity.
17 agree | 16 disagree
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Examiner Reader said:
O'Malley is all talk and no action, unless its raising taxes
24 agree | 15 disagree
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