Maryland consumers will begin paying small monthly fees on electric bills this year to subsidize an ambitious energy-conservation initiative, under plans approved by regulators yesterday.
The surcharges will not be set until spring, said Public Service Commission Chairman Douglas Nazarian, but preliminary estimates range from less than $1 to about $3 per month for residential ratepayers.
Electricity bills have been a thorn in O'Malley's side since he campaigned in 2006 on the unfulfilled promise of undoing a 72 percent electricity rate increase for 1.2 million customers of BGE, the state's largest utility. The O'Malley administration successfully negotiated a $170 credit for BGE customers in September, but critics were quick to upbraid the governor yesterday for policies that pile on fees at a time of economic hardship.
"I thought one of the claims of this administration ... was they were going to fight higher rates," said Del. Warren E. Miller, a Howard County Republican who sits on the House Economic Matters Committee. "Now what I'm hearing is they're going to issue an order to impose an additional charge, thereby making electricity more expensive."
The BGE plan approved yesterday anticipates a $390 million investment in energy conservation through 2015, which the Baltimore-based utility can recover through fees imposed on industrial, business and residential customers. The state's four other electric companies - Pepco, Delmarva Power & Light Co., Allegheny Power and Southern Maryland Electric Cooperative - have 90 days to propose a cost structure for their respective energy conservation programs.
A BGE spokeswoman declined to comment yesterday, saying officials there had not yet reviewed the PSC's order, which was released late in the day.
When all five electric company plans are up and running, the energy-conservation initiatives will represent investment of about $1 billion through 2015, said Malcolm Woolf, director of the Maryland Energy Administration, who called yesterday's actions "the first significant step" toward achieving O'Malley's conservation goals.
Maryland's goal of drastically reducing peak-energy consumption by 2015 is an "ambitious" goal that "no state has yet achieved," Malcolm acknowledged. "But few states have faced the energy challenges that Maryland has," he added.
The conservation requirements were adopted by the General Assembly last year amid rising energy demands that threatened to lead to rolling blackouts. The economic recession has reduced energy consumption, Nazarian said, but over time officials expect Maryland to struggle with rising consumer demand unless a "structural" reduction in consumption is achieved.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
11 comments:
Yet another increase in the name of conservation. How much more Democrats? You have bled me to the verge of foreclosure now. I have a suggestion that makes very good common sense. For the Home owners that what to do their part, give them grants to install geo-thermal and solar systems. this would reduce the usage and be able to sell back excess to the power companies. This would compensate for the ones not owning their homes and also cut down on a percentage the power companies would have to generate. OOPS!!! I forgot if the power companies didn't generate this power, they could not raise their rates at will. This was a good thought but I forgot these types of ideas only go to the GOOD OLE BOYS and not to the ones that suffer the most. Some examples are the unemployed, retired, elderly, disabled, even ones that have a job and want to do what they can but cannot afford the high price tag and survive in the process. Thanks again Democrats. Have A Happy New Year.
As soon as my rate decreases by the 50% decrease in fuel prices, I'll be willing to consider this, as long as it's not there to pay for the windmills SEVEN miles off the coast. That should be a private investment. What on earth is the increase for? Put the windmills on land where maintenance will be cheap, dummies.
The price to compare for delmarva power is 11.33 cents kWh. I have talked to friends in Georgia they pay about 6.5. I have family in other parts of Maryland they are paying about 7 or 8 cents. WHY THE HELL IS Delmarva power so high. The custemers of BGE dont want the 72% increase yet Delmarva power customers been paying inflated rates for years. Even with the 72% increase I bet Delmarva power is still more expensive. Start asking friends on other power companies how much they pay per kWh. Its listed on most bills.
Alleghany county has the best electric supply, because the local government truly cares about the residents there. Delmarva Power is ripping people off big time and it seems not one person gives a damn. My thermostat never goes over 68 in the winter and never under 73 in the summer (if we use it at all) yet our bill for a 1300 sq ft. rancher runs us well over $300 a month. I wasn't paying that much for a 5 bedroom 3 level house in Pasadena! There is obviously something wrong with that but can we get anyone to check it out? Nope.
To concerned retiree: I agree with you. I would install solar without a second thought, but how in the heck can anybody afford that when the dang energy bills are so high! Tax breaks after the fact aren't enough.
There should be accountability. If significant investment does not occur as a result of the fee, then reduce or eliminate the fee after a two-year trial period. I'm pissed that the fee I pay for restoration of the Bay has not had any significant effect on the Bay at all, in fact the state of the Bay is even worse. But I'm charged the fee whether the intended use worked or not. And without an end.... Please make your voice heard--no more increases without accountability.
All Official Filings should be addressed to Terry Romine, Executive Secretary at the address below:
William Donald Schaefer Tower
6 St. Paul St., 16th Floor
Baltimore, MD 21202
Why do the people keep voting for liars like him? It was obvious by his record in Baltimore what he would do.
One other warning for all readers. If you feel like your bill runs higher than most, get your meter checked. We built a new house and the contractor complained about his bill while building the house. Delmarva adjusted it for him. We moved in and for three years we felt our bill was way out of line. We finally went out one month and bought florescent bulbs for almost all our lights, then even cut back on what lights we used. The next bill went up! I had them come check the meter and when we cut off the main breaker, the meter still ran! They replaced the meter and our bills were cut in half. But if you think they will admit anything was wrong, forget it! They said the meter was tested and worked fine. The Utilities Commission is more or less OWNED by Delmarva, so if you want compensation, you better have a lawyer present when they check your meter.
If you want freedom from the Utility Companies, you'll have to look at equipment to install yourself, don't bank on elected officials or appointed ones to control the beast!
11:30 -- Delmarva Power is high so they can afford to pay their worthless employees so much money (not that they are all worthless, but the ones sitting in an office for a 12 hour shift with nothing to do but play the Wii I think could use a pay cut)
anon 11:30 My in laws pay 4 kw in western PA. Electric bill is usually around 35-45 YEAR round. Next the govt will be bailing out the power companies. Dpl needs competition-they are given a free hand to deal. I like the fact that in each month's bill they send us a "good neighbor" envelope to donate to people who can't afford their electric. Why in the Hell doens't DPL reduce the damn rate?Then they may be able to afford. I find at times its a struggle to pay our bill each month, and we are not poor. Why dont they reduce their rates. The cost of generating it has to have gone down-The price of fuel is down!!Simple No competition. The richer get richer- the poor get poorer....
What else is new? We already pay thru the nose to subsidize "energy assistance" programs.
I do want to applaud Choptank-when we had all those high winds on New Years Eve and all the DPL customers wewre in the dark, Choptank made sure their customers were not.
Do you know of the web site where the government is giving grants to convert to wind power ? I am a local electrician and would love to help locals to escape dps'hold on us all ! Besides isnt there a law that the local utilities have to buy back any extra power created that isnt used ? Lets all start the turning of the page and make these monopolies start paying instead of them sucking us dry !
But I first do need that web site for wind power Governmental Grants. And I promise....I will make it availible to all for it is only right.
Help me to help you .
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