Posted on 06/05/2006 5:30:14 AM PDT by .cnI redruM
Maryland officials are scaring off investment in the state with such anti-business moves as the court-ordered scrutiny of Baltimore Gas and Electric Co.'s energy rates and the law that forces Wal-Mart to pay employee health benefits, business leaders say.
"Wal-Mart yesterday. BGE today. Who's next?" asked William R. Burns, spokesman for the Maryland Chamber of Commerce, which represents about 850 businesses employing more than 340,000 people statewide.
He said companies are thinking twice about operating in Maryland after Baltimore Circuit Judge Albert J. Matricciani Jr. ordered the state's Public Service Commission to review the utility company's pending 72 percent rate increase and open its books for political leaders.
The lawsuit by Baltimore Mayor Martin O'Malley, a Democratic candidate for governor, also succeeded in voiding the energy plan of Gov. Robert L. Ehrlich Jr., a Republican seeking re-election.
The plan -- which Mr. Ehrlich brokered in April after the Democrat-controlled legislature adjourned without agreeing to any action -- gradually would have phased in the company's rate increase to market-based electricity prices when the 1999 rate caps expire July 1.
(Excerpt) Read more at washtimes.com ...
Wal-Mart has already demonstrated their willingness to bail out of anyplace that tries to put the squeeze on them.
And you wonder why people are leaving the Northeast in droves in favor of states with less onerous governmental regulations.
I hate to invoke the "C" word here, but this is beginning to sound like some sort of Communist Central Committee running the economic show. We definitely do not need this sort of activity in this country. In my opinion, in almost every instance, the pricing of goods and services should be driven by supply and demand.
Combined WalMart and DelMarVa Ping.
And it's noto just BGE customers getting the screws put to them........DelMarVa Power has been under heavy scrutinity on this side of the Bay, for the unreal rate increases set to go into effect July 1 in Marlyand, June 1, in Virginia and they went into effect May 1 in Delaware.
".....the utility company's pending 72 percent rate increase...."
I think this might require some public scrutiny.
Wal-Mart should pull out of Maryland and set an example.
While BGE's hike is the highest........all power companies are cranking rates up sky high...as deregulation in Maryland, Delaware and Virginia comes to an end. There have been rate caps in place since 1999.
Don't get me wrong, I'm not giving the utilities a pass here, just that not all fault liew with them.
I thought they already did.
Perhaps they will soon.
I think a 96 hour blackout may get a lot more attention-especially when they can cut off power to the state capitol buildings to make a point! No rate increase since '99, who's kidding who here?
It's true. Compared to most other states, we've had it pretty easy for the past 6 years. Now the utility companies may charge for the deferred transmission expenses as well as an increase in fuel costs. Unfortunately, that equals a large increase. I get my power from Delmarva (formerly Conectiv) in my part of Maryland. We had a 10% increase last year and this month are experiencing a 35% increase. But we had all those years of savings!
Dear Gabz,
The rate increases are only unreal in relation to the unrealistically low rates we've been receiving the past few years.
BGE is my power company, and for the most part, they really stink really badly. We had a five minute windstorm back in March that had us out of power for over two days. We recently experienced several days with on-again, off-again power. BGE sucks.
That being said, the rise in rates is likely pretty much justified. We're switching to Washington Gas' energy for a 12% savings (so my energy cost will "only" rise about 57%!). As well, we've committed to minimize the use of A/C this summer. Haven't turned it on, yet, in spite of three days in a row in the upper 80s / low 90s.
At this rate, it's getting worthwhile to consider setting up some solar energy generation. We have several roofed structures on our property, and thus, between those and the house, we have a lot of roof space for solar panels. It's expensive, I know. The last time I looked, balancing against our savings, it really never got to break even. Now, I wonder.
sitetest
It would be interesting to know what the rate increases are based upon and what part of the business they apply to. Example: are they for base rate items such as facilities, power plants and operations or are they for items like fuel purchases which are usually a pass through with no profit allowed.
Most regulators set a return on investment allowed and within that return it is up to the utility to managed their business so that they make a profit.
The imminent deregulation of the power distributors has been a know fact for YEARS! No one has been willing to address the cost issue and now everyone is looking at BGE like they are responsible for the increase. BGE has tried to put this issue on the table for a long time. The leaders that MD voters have put in place have done nothing and will just continue to screw the residents. Sheesh, I cannot believe how everyone in Baltimore and Annapolis is standing around with thumbs up you-know-where with stupid WTF, “how did this happen?” looks on their faces…I’m done ranting now.
This is like that tv commercial...you can pay me now, or you can really pay me later!! I guess the folks there must think this crap s free, or should be free. What a bunch of freeloaders and goldbricks the dimwits are.
I agree, which is why I commented earlier that all blame/screaming/whatever can't be laid at the base of the utilities.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.