Pipkin Makes the First Move
A day after Constellation Energy Group announced it would sue Maryland to recoup $386 million in credits it was forced to give utility customers as part of a legislation package passed in the wake of a 72 percent rate increase in 2006, state Sen. E.J. Pipkin announced three bills he will sponsor that seek to re-regulate Maryland's electric market and recoup nearly $1 billion from the utility conglomerate.
Here's his press release:
January 31, 2008
FOR IMMEDIATE RELEASE
Senator E. J. Pipkin (R. Upper Shore 36), fighter for the ratepayer, has introduced three pieces of legislation to return $975 million in stranded costs back to the ratepayers and move Maryland back to a re-regulated market to provide a more stable and reliable delivery of power.
“Constellation continues to threaten the people of Maryland with lawsuits and increases in cost,” said Pipkin. “This is the result of the 1999 regulatory scheme that funneled millions of taxpayer dollars to a monopoly. The Public Service Commission has given us the tools to reregulate and the time to act is now.”
The bills Senator Pipkin has introduced to reregulate and take back the stranded costs for the consumers are:
*SB278 - Maryland Energy Independence Act of 2008
*SB448 - Constellation Energy Group, Inc. and Baltimore Gas and Electric Company - Return of Transition Costs
*SB450 - Public Service Commission - Electric and Gas Consumers.
SB278 would require that 100% of the electricity used in Maryland be generated within the state by 2018. By requiring Maryland to be energy-independent, the state portfolio of power generation, such as clean burning coal and nuclear power, would put the state in a great position to take advantage of low prices. SB448 would require Constellation Energy to return $975 million in stranded costs to the ratepayers. SB450 would require that the PSC consider achieving the lowest price the commission’s top priority when setting rates.
“We now know that the 1999 deregulation scheme was a failure. Ratepayers have been paying record prices for energy while Constellation has posted record profits,” said Pipkin. “We need to fix the mess and keep our focus on achieving the lowest prices for consumers.”
This year culminates over three years worth of Senator Pipkin’s efforts to reverse the negative consequences of deregulation. In 2004 Senator Pipkin sponsored SB 739 to protect Maryland consumers from double-digit rate increases. In 2006 Senator Pipkin sponsored SB1099 to return stranded costs, projected to be $500 million, back to the ratepayers. The bill passed through the House and Senate but was vetoed by the Governor.
Senator E.J. Pipkin serves on the Finance Committee, the committee that will hear all three bills.
Comments
Given the fact that the legislature was at the middle of this thing in 1999 - is it really wise for Mr. Pipkin to continually call what the did a 'scheme'?
And why should we believe this isn't another scheme that will cost us even more money???
Posted by: Frank | January 31, 2008 3:29 PM
Pipkin is a doofus. He made a fortune as a junk bond trader on Wall Street, i.e., not creating or providing anything useful to society, but now holds himself out as some kind of champion of the common man as he runs for a different office every 2 years. He and that other windbag Pat McDonough should just shut up and start focusing on constituent service instead of constantly engaging in demagogy to further their own political ambitions.
Posted by: One disgruntled Republican | January 31, 2008 4:22 PM
I do not know Senator Pipkin that well, but calling him a "doofus" says more about you than it does Senator Pipkin. When are we going to stop insulting people just to make a point? We need to act like adults. Talk about the issues and leave the name calling to the kids in middle school.
Posted by: Philip Gonyo | January 31, 2008 7:07 PM
Pipkin is the guy saying Gilchrest is not conservative enough and he is introducing a bill to regulate electricity?
Maybe he should introduce a bill to make gas cost 99 cents a gallon while he's at it. and a 4% interest rate cap on credit cards.
Posted by: Mike | January 31, 2008 7:50 PM
Marylanders should not have to rely on energy funds and financial assistance in order to keep warm in winter. Kudos to Pipkin, the House, and Congress if they can help reverse this horrible BGE de-regulation mess. Hopefully Pipkin is looking out for us, unlike O'Malley who vetoed the bill. What gives with our new gov? Wishy washy O'Malley should discover his stance on issues, develop some integrity, and keep his campaign promises to help make energy (and anything else for that matter) more affordable.
Posted by: jed | February 11, 2008 12:36 AM