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Electricity re-regulation fight beginning before '10 session
Lawmakers pick sides as contentious issue comes to fore
Friday, Nov. 6, 2009
 Click here to enlarge this photo COLLEGE OF SOUTHERN MARYLAND
Lt. Gov. Anthony G. Brown, middle, chats with Del. John L. Bohanan Jr., left, and Sen. Thomas "Mac" Middleton during a legislative breakfast reception at the College of Southern Maryland on Wednesday hosted by Annapolis lobbyist Gregory Steve Proctor.
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House Economic Matters Chairman Dereck E. Davis will vote against proposals to re-regulate Maryland's electricity industry and vowed to prevent the issue from consuming his panel's work in the 2010 General Assembly.
His comments, made Wednesday during a legislative breakfast at the College of Southern Maryland more than two months before the 90-day session, could set the tone for a debate that went unresolved last session and still promises to be a highly charged topic when lawmakers return to Annapolis in January.
But Davis' opposition, which he said he came to after hearing a raft of testimony and months of analysis on the issue, deals a blow to re-regulation supporters who hoped its passage would boost supply and drive down energy rates.
The state legislature should not be in such a rush to move back toward a regulated environment, especially given the failures of deregulation that many lawmakers now acknowledge was a mistake, said Davis (D-Prince George's).
"It's really become pretty clear to me that, as my 11-year-old would say, maybe we ought to just chill out," he said.
Residential energy prices are starting to decrease, new energy plants that will increase in-state generation capacity are being planned and outside suppliers are now soliciting for Maryland customers, said Davis, pointing to a flier he received recently in the mail from Dominion Power advertising affordable rates.
He's also not convinced that re-regulation will guarantee price reductions that would bring them down to where they stood before artificial rate caps imposed under deregulation expired in recent years.
In the meantime, he's hopeful the use of smart energy meters and other conservation initiatives will help to reduce ratepayers' bills.
But legislators leading the charge to go back to a regulated market said that's wishful thinking.
"We've waited plenty. We've studied it to death," said Sen. E.J. Pipkin (R-Upper Shore). "The [Public Service Commission] in their statements last year made it clear that deregulation has failed."
Davis pledged to not let the issue drag out over the course of the session and prevent his committee from tackling other important legislation it considers.
Earlier in the breakfast program, Senate Finance Chairman Thomas "Mac" Middleton (D-Charles) said the ball was in Davis' court to move a re-regulation bill through the House first next session.
The Senate passed a re-regulation bill this year only to see it fizzle in Davis' committee in the waning days of the legislative session.
"It doesn't make any sense to go through that battle again and then have it go nowhere in the House," he said.
Even without Davis' support, Sen. James C. Rosapepe (D-Prince George's, Anne Arundel) believes re-regulation will get a huge boost if Gov. Martin O'Malley (D) makes it one of his legislative priorities.
"It's certainly something we're considering as we craft our legislative agenda," said O'Malley press secretary Shaun Adamec.
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