Utility Regulatory News
The utility reporter specializing in weekly coverage of state PUC rulings.
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News Excerpts From a Recent Utility Regulatory News
LETTER # 3860 -- March 7, 2008
CALIFORNIA ELECTRIC RESTRUCTURING:
PUC Seeks to Resurrect Customer Choice
Although making it clear that it would like to see the now-suspended direct access
component of the state's electric restructuring plan reinstated, the California
Public Utilities Commission (PUC) has determined that, as the state's regulatory law
is now crafted, it is without authority to lift the suspension on its own. In May 2007,
the PUC had promulgated a rulemaking to assess whether and how direct access
could be reimplemented. The state's landmark electric restructuring plan had been
built around the concept of direct access, under which a customer could choose to
contract for the generation portion of service from an incumbent utility or an alternative
electric service provider (ESP). However, amid charges that the state's energy
crisis of 2000-2001 had been caused in large part by wholesale energy suppliers
being able to game the system, the state decided to suspend direct access. ...
MARYLAND ELECTRIC RESTRUCTURING:
State, Constellation Energy Square Off
On December 19, 2007, President George W. Bush signed the Energy
Independence and Security Act of 2007, which features improved vehicle fuel
economy standards and reductions in U.S. dependence on oil. The Act is also touted
as a major step forward in expanding the production of renewable fuels, reducing
dependence on oil, and confronting global climate change. The Act also includes several
items of interest in the energy industry sector. ...
GEORGIA ELECTRIC RATES:
Environmental Compliance Rider Included in New Tariffs
Aflurry of recent legal action has signaled the escalating tension between
Maryland state officials and Constellation Energy Group (CEG), parent company
of Baltimore Gas and Electric Company (BGE). The skirmish began with two reports
issued by the Maryland Public Service Commission (PSC) in December and January,
both of which were highly critical of the state's 1999 electric restructuring plan (see
Letter Nos. 3847, 3854). Those reports cited a number of flaws in the plan and concluded
that the plan and a related settlement agreement with CEG had been "seriously
imbalanced" in CEG's favor. In the wake of those reports, CEG was called to
appear before the commission early last week to testify about the windfall the PSC
has alleged the utility will receive as a result of the electric restructuring initiative.
During that hearing, Constellation denied that it would reap any undue profits from
the restructuring plan and argued that its 1999 restructuring agreement was fair for
both it and ratepayers. But a mere three days later, the State of Maryland filed suit in
a local circuit court seeking enforcement of a 2006 state law that had amended that
agreement and required BGE to pay out almost $400 million in credits to its customers. ...
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