20060707 KDDC Recent MGA actions on Electric Dereg will hurt Marylanders

Recent General Assembly actions on Electric Deregulation will hurt Marylanders

July 7, 2006

In light of Maryland's Court of Appeal's decision today to halt the General Assembly's firing of the Public Service Commission, you may want to be sure to read an Op-Ed column in today’s Baltimore Sun as to how the Maryland General Assembly’s approach, in the long and short run, will hurt Marylanders in the future electric market.

It is written by Ray Gifford, president of the Progress and Freedom Foundation, is a former chairman of the Colorado Public Utilities Commission:

From the Baltimore Sun

Assembly's BGE stance will hurt Marylanders

By Ray Gifford

July 7, 2006

WASHINGTON -- Maryland will suffer for some time because of the General Assembly's poor, populist choices about electricity.

As expected, the legislature overrode Gov. Robert L. Ehrlich Jr.'s veto of a bill that limits Baltimore Gas and Electric's rate increases and eliminates all of the current members of the Public Service Commission. The bill is a travesty for Maryland consumers and good regulation.

By repealing the rate increases, the legislature effectively denies BGE the ability to pay the competitive price for electricity. While this is hailed as a populist victory over corporate greed, no one has made an effective case that the PSC's determination of the need for an increase was wrong or overestimated BGE's costs. Instead, the legislature chooses to defy simple regulatory math; an electric utility must be able to charge what electricity costs or it will provide too little or slowly go out of business.

Read the rest of the column here.

20060707 KDDC Latest edition of the Westminster Main Street News is now available

Extra! Extra! Read all about it. The latest edition of the Westminster Main Street News, by Westminster Economic Development Administrator Stan Ruchlewicz.

Always informative and well written - click here: "Downtown Westminster Main Street News!"
to download the latest edition.

20060707 KDDC MD Court puts canning the PSC on hold

July 7th, 2006 at 1:55 PM.

Tom Stuckey, writing for the Associated Press reports that the MD Court of Appeals has put a temporary stop on the Maryland General Assembly firing the Public Service Commission.

Maryland State lawyers say that the Maryland General Assembly has the power to not only replace the Public Service Commission, but the august body even has the power to replace the replace judges of the Court of Special Appeals if it didn't like a ruling; saying: "As unpalatable as if may be, the legislature has that power," Berman replied."

The AP piece was placed on the Baltimore Sun's web site at 1:26 PM:

Md. court temporarily halts plan to fire PSC

Appellate judges say law cannot be enforced pending further order

By Tom Stuckey

The Associated Press

Originally published July 7, 2006, 1:26 PM EDT

"The five members of the Public Service Commission won a temporary reprieve today when the Court of Appeals issued an order enjoining the enforcement of sections of a bill passed last month to replace the current commission with new appointees.

The court's decision came in a two-paragraph order prohibiting replacement of the commission members "pending further order of this court."

Be sure to find the time to read the ENTIRE article. In a precious exchange, at the end of the article:

"Assistant Attorney General Michael Berman told the judges that the legislature has inherent authority to replace state employees. That power can only be limited by the state constitution, and there are no constitutional restrictions that would apply in the case of the Public Service Commission, he said.

"The General Assembly was addressing a problem, and the problem required ending the terms of the commission," Berman said.

Berman was questioned closely on how far the power extends to replace employees.

Could the General Assembly replace judges of the Court of Special Appeals if it didn't like a ruling, Bell asked.

"As unpalatable as if may be, the legislature has that power," Berman replied. (my emphasis)

He said if the legislature went too far in exercising its power, it could be reined-in by voters at the next election."

Read the rest of the article here.

Gee, if we could only get the all-powerful Maryland General Assembly to use that power for public good instead of serving themselves. Ah, for starters, perhaps they would consider replacing North Korean communist leader Kim Jong Il.

The opera that we know as the Maryland General Assembly continues to entertain.

####