Feb 1, 2008 5:23 am US/Eastern
Lawmakers Battle Constellation Lawsuit
BALTIMORE (WJZ) ―
There's growing outrage coming from state lawmakers a day after BGE's parent company Constellation Energy made two announcements.
One is that they've accrued record profits, and the other is a lawsuit against the state.
Mary Bubala reports BGE is also saying they're going to charge more for electricity.
Constellation officials are vigorously defending their decision to go ahead with a lawsuit against the state for nearly $400 million that the consumer would pay.
Lawmakers, including the governor, are on the offensive and say they'll spare no expense to protect consumers.
"I'm outraged, and I'm angry. And I think they're nothing but a bunch of nasty bullies," said Del. Pat McDonough.
Constellation says the $400 million, in the form of rebates to ratepayers, was part of a bargain and claims the state didn't hold up its end.
"This is less about the $386 million and much more about the principal of a contract and the sanctity of that contract," said Rob Gould of Constellation Energy.
But to ratepayers like Nicole Bell, who will end up paying more for power if Constellation wins, it's all about the money.
"We're already broke! We can't afford anything, and it's just making it so much worse," said Bell.
Many consumers are already experiencing sticker shock after rates were hiked up 50 percent last summer.
That was part of an overall 72 percent hike that went into effect after deregulation, and we will see another five-and-a-half percent this summer due to the rising cost of energy.
"I definitely keep the heat down lower," said consumer Kate Cunningham.
Governor O'Malley spoke first to
Eyewitness News Wednesday night and Thursday publicly reiterating a pledge to protect ratepayers.
"We are all united in standing together and defending the best interests of the state of Maryland and the best interest of our consumers as well as utilities to come up with a stable regulatory environment with predictability and affordability for Maryland's energy needs in the future," said O'Malley.
Whether that means exploring re-regulation, the government has not said.
O'Malley has stressed conservation.
The Public Service Commission will meet with Constellation officials at a hearing next Wednesday.
On Wednesday, Constellation announced double digit profits in 2007 and expects to see another double digit growth in 2008.
(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)
