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Maryland attorney general wants say in BGE hearing
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Related Topics: Annapolis
Annapolis (Map, News) - Maryland Attorney General J. Joseph Curran Jr. wants to be the voice of Marylanders before the state’s Public Service Commission as the body considers Baltimore Gas & Electric Co.’s request to sell bonds to offset lower rates.
The Maryland General Assembly approved legislation that required lower rates to mitigate the proposed 75 percent hike BGE initially sought.
The commission must decide if BGE can sell rate stabilization bonds. The bonds will cover the BGE’s costs to sell electricity at the low rates. The rates are less than BGE’s cost to produce the electricity.
In testimony presented to the commission on Nov. 3, David M. Vahos, director of finance for BGE, said the company wants to sell bonds that would mature within 10 years.
Vahos estimates that the rates charged to customers will create $614 million deferred costs from July 1, when the rate stabilization plan went into effect, to May 2007.
“Shortly before the issuance of the Bonds, these cost estimates will be revised and updated,” Vahos said. “The update will reflect actual costs incurred.”
He estimates that by 2007, short-term borrowing costs to cover the lower rates will reach $7.3 million.
Mark Case, vice president for regulatory issues for BGE, said the public service commission, will hold a hearing on Dec. 14 and is scheduled to make a decision on Dec. 22.
“If we get approval, we can get a AAA bond rating,” Case said.
Kevin Enright, a spokesman for the Attorney General said the office wants to intervene because the bond sale and the process to undertake it “will affect all ratepayers in Maryland, directly or indirectly.”
He added that no party represents all Marylanders. The Attorney General filed a request to intervene to represent Marylanders on Nov. 27.
eeldridge@baltimoreexaminer.com
Comments from Examiner Readers
8:45 AM MST on Sat., Apr. 21, 2007 re: "Co-op laws decried as prohibitive"
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Examiner Reader said:
So where are we with this effort? I assume it's dead or we would have heard more about it since December. It would aos be nice if reported would spell out approximately what BG&E's new proposed "price to compare" would be if nothing is done. They all say 50% increase, so to me that says to me: $0.113 x 1.5 = $.1695 (or there about) I'm glad I switched to WGES and got $0.089. I recently got a letter from them telling me I'll need to moving into a 1 or 2 year fixed contract soon. New rates for me are: $0.109 and $0.11 for 1 and 2 year contracts respectively. Note the site currently has offerings of $0.113 (for 5% wind power). The only thing close is Commerce at $0.092 and $0.098 variable rates. Pepco has a nice $0.127 100% green option so I could be saving the world. It's only appealing if the BG&E rates go up to what I calculated above (not including deferral interest). Feel free to chime in any time.
167 agree | 153 disagree
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