ANATOMY OF A SHAKEDOWN

When Akron-based First Energy Corp. sought a $4.7 billion merger with Allegheny Energy, which serves Maryland customers through its Potomac Edison subsidiary, in February 2010, it received a taste of Martin O’Malley’s shakedown tactics.

As a condition of approval, the O’Malley controlled Maryland Public Service Commission, in January 2011 placed several conditions on the merger. One condition in particular mandated that First Energy assist in developing a Tier 1 renewable energy source capable of generating 13,000 megawatts.

In December 2010, Malcolm Woolf, head of the Maryland Energy Administration—appointed by O’Malley—testified before the Public Service Commission in favor of requiring First Energy to support a Tier 1 renewable energy project. It was the first time Woolf ever testified before the commission since O’Malley appointed him in 2007.

More