A reader asks:

Do you have information on Pepco and BGE electricity prices and the changes in the last 10 years (or so)? My understanding is that Pepco prices have risen about the same amount, but over a bit longer time period - so the shock was not as great. I also want to understand why everyone (including the governor) are not concerned about the Pepco price increases.

My answer:

I'm pretty sure the increases over time are about the same. Here are the reasons everybody's mad at BGE: BGE transferred its power plants to parent Constellation at book value (for free) and then got the state to force ratepayers to pay another $1 billion for taking the plants off BGE's hands. These plants, especially the Calvert Cliffs nuclear plants, produce low-cost electricity, and under regulation BGE once passed the low price on to customers. Now, with deregulation, parent Constellation can charge whatever the market bears and is making enormous profits. So BGE customers have lost the plants, paid Constellation $1 billion for taking them and now are paying even more in big markups that never would have been allowed under regulation.

Pepco, on the other hand, sold its plants on the open market in 2001 or so and rebated the proceeds to ratepayers. And it didn't own any nuclear plants, to my knowledge. That's what makes the BGE situation different. In one case ratepayers got paid for the plants; in the other, they didn't.

I should add that Constellation offered to let regulators appraise the plants over time so that BGE ratepayers could collect rebates if the plants rose in value (as they did). But the state rejected that deal. It's also true that Constellation has invested lots in capital improvements in its generation plants. But that investment doesn't come close to the profits and capital gain Constellation has made on the facilities.