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March 23, 2011

O'Malley's offshore wind bill hits turbulence

Good midcourse handicapping on the offshore wind legislation by the Daily Record's Nicholas Sohr. I haven't looked at them closely, but Mac Middleton and Dereck Davis are right to question the bills, which seem rushed. Sohr reports:

“I have real concerns about [the bill] right now,” said Sen. Thomas M. “Mac” Middleton, D-Charles, chairman of the Senate Finance Committee, through which the governor’s bill must pass if it is to get a vote in the full chamber.

Middleton said worries about the cost have generated interest in watering down the legislation, SB 881 and HB 1054, to study the issue over the summer.

And:

“I think there’s a reluctance to do anything that raises electric bills any amount,” said Del. Dereck E. Davis, chairman of the House Economic Matters Committee. “Even if you’re on the low end of the range, I think that’s something that folks have reservations about.”

The Sun's Annie Linskey reports:

But Middleton said the bulk of the opposition is centered on the costs to ratepayers. After facing tough elections and angry votes last November, many senators and delegates are particularly sensitive to pocketbook issues.

House Speaker Micheal E. Busch did not sound as rushed. "It is a distance run, not a sprint," he said. Complicated legislation, like the wind bill, can benefit from "thorough dissection," he said.

"Sometimes it takes more than one session," Busch said.


Posted by Jay Hancock at 8:59 AM | | Comments (2)
Categories: BGE/electricity
        

Comments

Jay,

Although I'm not sure if I completely understand the whole PJM Interconnector capacity charge issues you wrote about a few months back, perhaps that could be the solution to funding the wind project.

Why not force current energy producers to use the unspent PJM Interconnector capacity charges that they pocket from us ($175 per year from each ratepayer, with billions collected so far) for the wind farm?

I realize this would cut off the governor's childhood friend's access to green corporate welfare, but it would save ratepayers a bundle.

Jason

Hi Jason. Thanks for the note. Maryland doesn't have the power to force payment of the PJM capacity charges for anything but Constellation Energy profits. Thanks deregulation! The Maryland PSC can order these types of payments at BGE but not at Constellation, and the capacity payments are part of the deregulated, Constellation-only hoard. JH

Please show figures for a successful wind farm project. I've seen failure reports for denmark, Holland, Great Britain, and Texas. Should we add Maryland?

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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