Posted on 06/25/2006 11:52:48 AM PDT by Tolerance Sucks Rocks
ANNAPOLIS -- State lawmakers voted yesterday to overturn Gov. Robert L. Ehrlich Jr.'s veto of the Democrats' energy plan that will postpone a 72 percent rate increase by Baltimore Gas and Electric Co. but forces customers to pay interest on the deferred charges.
The company's 1.1 million residential customers will see their bills increase 15 percent on July 1 -- not the 72 percent increase to market rates set earlier this year in a wholesale electricity auction overseen by the utility-regulating Public Service Commission.
However, the money customers save will still be owed to the company, and the customers will have to repay it and about $109 million in interest over 10 years.
Mr. Ehrlich, a Republican seeking re-election this fall, said he vetoed the bill because it forces the debt and interest payments on customers.
Senate President Thomas V. Mike Miller Jr. said the average monthly interest and debt payment of $2.19 would be canceled out by the elimination of some current fees and by future rate savings.
"There is no interest," Mr. Miller, a Prince George's County Democrat, said after the veto override passed his chamber without debate. "You can't legally say that [in the bill] because it would be an unconstitutional taking under law."
Senate Minority Whip Andrew P. Harris told the Associated Press that Senate Republicans chose not to debate the bill because they knew Democrats had the votes to override the governor.
"There are numerous parts of this bill that are faulty," said Mr. Harris, Baltimore County Republican. "We're not here to work and solve a problem. We're here for political reasons."
Ehrlich spokesman Henry P. Fawell said Democrats overrode the veto to enact a "incumbent protection plan" for lawmakers that does little more than forestall the massive rate increase until after this year's elections.
(Excerpt) Read more at washingtontimes.com ...
Dispatch from the Land of Peasant Living.
Brought to you by The Socialist Republic of Maryland.
Well at least Ehrlich will have a clean conscious and can wash his hands of the whole mess by pointing to this veto and the Democratic legislature's action later on when the roof finally comes down on Maryland energy consumers in about 18 months.
Are the idiots making electricity from natural gas? It's time to put a stop to that and start using coal. This is an energy crisis.
I've been trying to figure out how this is going to work. Those of us in MD who are served by Delmarva are paying approximately 10 cents/kwh for the supply cost. This is after a 10% increase last June and a 35% increase this June. I believe part of that cost is deferred product costs due to the rate freeze which we all enjoyed since 1999.
BGE states their supply cost is about 6 cents/kwh.
Since the cost of producing electricity cannot vary by very much, that 6 cent cost is running at a deficit which must be made up in the future.
By delaying the increase, what will be the amount of the increase when it finally is put in place?
Sounds to me like Mike Miller is owned and operated by BG&E. I knew he was a POS, but this is crazy. this is nothing more than borrowing from Peter to pay Paul and Paul gets the interest.
Repubicans have been coming ahead in maryland and legislation like this can only help us.
Masachusetts and California are the first states people think of when we compare socialism and communism to sate government. But Maryland beats them both hands down..
We have two nuclear power plants at Calvert Cliffs, on the Chesapeake Bay. Of course they are over 30 years old and liberals in Maryland, afraid of pocket knives, drawings of guns, and the word "nuclear" will never allow any more nuclear power plants to be built. So, sure, when demand doubles but supply stays the same, prices will go WAY up...
If you look at the definition of "Public Utility" the dictionary you will find that they are not a bottom line, golden parachute, gross salary, big bonus operation, at least they are not supposed to be. When the Governor loads the Public Service Commission with company hacks what do you suspect is going to happen to the price of electricity?
(Denny Crane: "Every one should carry a gun strapped to their waist. We need more - not less guns.")
We need nuclear and coal electricity plants right now. Lots of them. Natural gas is not going to work. We need that for heat, and the demand for natural gas electricity is making everyones' heat nearly unaffordable.
A short sighted vote buying plan comes due, and these people's reaction to the bill is to push it back even further where it will cost even more.
Blue state politics at their very best.
most utilities use their nukes and coal plants for baseline demand
then during high demand periods, the natural gas plants come on line because they can be easily started and stopped.
plus the nat gas plants do not need all the pollution controls that coal plants do
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.