Liveblog: PSC approves CEG/EDF deal with 'conditions' including $100 credit for BGE ratepayers
And we're liveblogging the PSC decision on Constellation and EDF. EDF and Constellation want to have EDF buy half of Constellation's nuclear-energy business for $4.5 billion.
The Public Service Commission approves the deal with "conditions." One of the conditions is "a distribution rate credit to Baltimore Gas & Electric residential ratepayers of $110.5 million." Note -- every BGE residential customer gets a distrubtion credit, whether you have switched electricity suppliers to WGES or anybody else.
"The total $110.5 million rebate will provide a credit of approximately $100 for each BGE residential customer."
UPDATE: The PSC is basically asking EDF and Constellation to divert money they were going to spend on a visitor center at Calvert Cliffs, charitable contributions, a delay in a distribution rate increase etc. and spend it instead on the residential ratepayer credits.
"This condition should not restrict EDF or CEG from building a visitor center or funding CEG's foundation or both," the PSC says.
UPDATE: Another condition of the EDF investment: Constellation has to put $250 million in cash into Baltimore Gas & Electric between now and June 30. Future dividends paid by BGE parent Constellation would also be restricted.
UPDATE: The PSC tells Constellation and EDF they have until Nov. 6 -- next Friday -- to say whether or not they intend to go through with the deal.
And more:
-- Whether or not EDF and Constellation build a third reactor at Calvert Cliffs is up to them, the PSC says. "As we explain, the decision to build Calvert Cliffs 3, and the fate of any impact to our State from that project, lies in the Companies' hands at this point, not ours..." the order says.
-- Ouch! "It is unfortunate, though, if public officials, churches, Chambers of Commerce, business owners, the press and, most of all, the Companies employees' have been (mis)led to believe that our decision approving this Transaction guarantees that Calvert Cliffs 3 will be built."
-- The commission punts on the pay of Constellation CEO Mayo Shattuck, saying it has no jurisdiction. "But even if we might, as individuals, question the wisdom of paying anyone millions of dollars a year given CEG's recent history, it is our role as Commissioners to focus on BGE and its ratepayers."
-- No kidding! "We will not pretend that this rebate, which will amount to approximately $100 per residential customer, will make a significant difference in anyone's bill, although every little bit helps."
Comments
Jay, why doesn't anyone talk about how O'Malley said he would lower rates, but he actually raised our BGE rates with a so called conservation credit? Yet another broken promise by O'Malley.
Posted by: Reggie | October 30, 2009 1:29 PM
"Yet another broken promise by O'Malley"? How about 4 years of Kendall's dumb husband doing all he could do to benefit his Corporate benefactors while screwing over the citizens of Maryland? I'll take admirable goals which ultimately prove unobtainable in full, versus 4 years of saying "F*** you" to the citizens any day!
Posted by: MikeWall | October 30, 2009 2:13 PM
What some forget is that Ehrlich new what he could and couldn't do or control about BGE and prior legistaltion, O'Malley had no clue and or as I see it did what he did for political gain REGARDLESS of the impact on the citizens down the road. O'Malley is nothing but an empty suit looking for his next photo-op to further his political career.
Posted by: Mike | October 30, 2009 4:04 PM
Thank you MikeWall for demonstrating that for you and partisans like you the common good always takes a back seat to personal invectiveness.
Posted by: Dan | October 30, 2009 4:44 PM
OWEMally is destroying the business industry with his baseless demands just to advance himself politically. If it wasn't for DC being down the road this are would be destroyed because no one besides the government would want to operate under these politcal pressures. Especially an publically traded business
Posted by: JB | October 30, 2009 5:03 PM
Dan,
What Ehrlich did to us is far worse than any language I may have used. Besides, the language used to describe Gov. O'Malley by those who agree with your point of view has been far worse (apparently you consider bigotry to be appropriate)! I'm tired of idiots standing up for so-calld "pro-business" policitians without realizing (DUH) that being pro-business is being anti-people - this is EXACTLY what our founding fathers brought this country into being to get away from - i.e., the European aristocracies!
Posted by: MikeWall | October 30, 2009 5:16 PM
Mr. Wall and Mr. JB, you two need a time out. Ehrlich, O'Malley, who cares, the real point of this is that this State, nay, this country needs expanded energy capabilities. Remember that both of the above mentioned are first, politicians. That means neither is to be believed since by my definition each is a liar and a whore. That said, it is imperative that we move forward, with or without the CEG/EDF deal. The infrastracture of this country is sorely in need of repair not new roads and new bridges but fixing those that we already have. I wish our elected officials would turn their attentions to what is most needed.
Posted by: reader203 | October 30, 2009 8:41 PM
MikeWall writes "Being pro-business is anti-people." What is that supposed to mean? Where are the jobs supposed to come from if not from businesses? Are not businessmen people too? In a free market do not people have the freedom to choose to work or not? And if people choose to work a vibrant economy means they have a greater choice of work to do. And if one chooses not to work, well don't complain when the bills go unpaid.
Posted by: Dan | October 30, 2009 11:20 PM