Governor Hogan's Veto Override Saga

I saw where the House has already overrode Governor Hogan's veto on three of last years legislative bills - and have postponed the veto override on the revised RPS (Renewable Portfolio Standards) - acceleration.

https://www.washingtonpost.com/local/md-politics/maryland-house-overrides-three-of-gov-hogans-vetoes/2016/01/20/1e88d704-bf77-11e5-9443-7074c3645405_story.html?utm_term=.1867fbaf0631

This tells me that Mike Miller didn't have enough votes to ensure the override. And so he is going to try again next week.

It is definately a 'Sunshine Tax' as Governor Hogan has noted - and if Mathias or any other Eastern Shore representative votes in favor of the override - it will result in substantial increases in Marylander's utility rates.

Here is a response to an article that was written by a Baltimore Sun reporter - but as you already know - it has to do with the way the Maryland electric utilities treats its "cost of service" base for surplus electricity generated by solar systems.

Letter directed to Baltimore Sun reporter Scott Dance - regarding his misleading fake news report regarding Governor Hogan's statement that the accelerated RPS was not a 'Sunshine Tax'. 

http://www.baltimoresun.com/news/maryland/politics/bal-fact-checking-gov-larry-hogan-s-push-against-100m-sunshine-tax-20170123-story.html

SBYNews was (once again) the one that originally broke this story several weeks ago. The Baltimore Sun is just now trying to do catch-up - and - unsuccessfully.

I have to disagree with your assessment. The first Community solar projects have yet to come online. 

http://mgaleg.maryland.gov/webmga/frmMain.aspx?id=hb1087&stab=01&pid=billpage&tab=subject3&ys=2015rs 

But when they do - look out - if you macro out the 'scale' and the effects on Marylander's residential electricity rates - it will prove to be economically disastrous.

Do you understand the "cost of service" as to where all of the surplus payments to the community solar subscribers is going to come from? It is from each utilities customer base - not the utility. 

All of this is being propelled by the already accelerated RPS standards - and - if they increase it as many politicians have been pushing for - it will prove to be an absolute financial disaster to Maryland residents - particularly the poor.

I do not know if you are aware - but what concerns me more than anything else about the Community Solar Program - is that in the event a subscriber decides to purchase a subscription between the 100% -200% of their baseline annual usage - then - the payment he or she receives for the surplus electricity will be borne by all of Maryland's utility ratepayers. In essence - the utilities electric customers that do not have solar - are being penalized for the escalation of utility costs.

The payment or payments that the utility is to provide each subscriber at the true-up period (May of each year) - those payments are going to be treated as an expense item for the utility and is being lumped-in into their overall "cost of service".

Utilities charge their customers rates set by the state public utility commissions. The rate is based on the "cost of service" plus a level of profit set by the commission based the utility's "rate base." The "cost of service" includes operating and maintenance expenses (including the Community Solar true-up payments), economic depreciation, interest, and tax expense. The "rate base" is supposed to reflect the value of the utility's assets and is a dollar amount that is multiplied by the rate of return set by the commission.

For example: If a utility's cost of service is $10 million a year, it has a rate base of $100 million and the commission has set the regulated return at 6%, then the utility could charge a rate for electricity that would generate $16 million (i.e., $10 million plus 6% of $100 million) for the year.

If one were to expand out these surplus electricity payments on a macro scale - it could prove to detrimental to utility customers, and, particularly the poor.

As far as I can tell - hardly anybody is addressing this glitch.