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Pull the Plug on Maryland's Electric Re-regulation Bill

Annapolis - Legislation that would give the state control over building new power plants and effectively do away with customer choice for most customers would do nothing to lower consumer bills in the short-term and would actually steer them higher over the long-term, said the Electric Power Supply Association (EPSA) today, urging members of the Maryland House of Delegates to defeat SB 844/HB 1530 if it reaches the floor for a vote.
"Putting the construction of new power plants at the discretion of state government will not lower rates and will in fact drive them higher over time," said John E. Shelk, president and CEO of EPSA. "As evidence, look to Georgia, Florida, North Carolina and West Virginia, all states that never restructured their markets and where utilities are seeking sizable rate increases to help pay for more generation. And utilities in states that recently re-regulated such as Virginia, Ohio and Michigan are now seeking double-digit rate increases, with Virginia's largest utility filing just last week for an additional series of multi-year rate increases. It makes no sense to re-regulate and put all the risk for these multi-billion dollar, multi-decade power plant decisions squarely on the backs of consumers, possibly without going through any competitive process," said Shelk.

Shelk added, "Under this bill, customers will be justifiably outraged to learn they may end up underwriting the considerable cost of power they will never use if they choose to purchase their electricity from a non-utility provider or to participate in demand response programs."

Shelk said, "Instead of limiting itself to state-specific power supply options as envisioned under this bill, Maryland currently gains from a regional approach that provides more choices for utilities buying power, allowing them greater access to least-cost options regardless of their location or ownership. In fact, through its participation in the PJM Interconnection, Maryland already is set to reap the benefits of planned new generation in the region. This regional approach becomes even more valuable as policies are adopted that increase the use of renewable energy. Indeed, areas of the country without a regional approach are now seeking to create one," said Shelk.

"The decisions that legislators make now will reverberate for decades. Those states that didn't devote sufficient time and attention to this issue certainly must regret their hasty decisions that have produced higher rates, not lower ones," he said.

For more information, see EPSA PowerFact "Continued Rate Increases in Non-restructured States"

CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660

EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.