Constellation Energy Issues Statement Regarding BGE's Appeal to the Maryland Court of Special Appeals
May 16 2006 - 5:35PM
PR Newswire (US)
BALTIMORE, May 16 /PRNewswire-FirstCall/ -- Constellation Energy
(NYSE:CEG) and its subsidiary Baltimore Gas and Electric Company
(BGE) today released the following statement regarding BGE's appeal
to the Maryland Court of Special Appeals concerning a lower court
ruling prohibiting the utility from communicating the specifics of
a Maryland Public Service Commission (PSC) approved rate
stabilization plan. "It is extremely unfortunate, particularly for
BGE's customers, that certain elected officials continue to use the
issue of higher energy costs for nothing more than political gain
and advantage, while at the same time, offering no viable
alternative to the increase. "In this case, the important option to
phase-in market prices is being forestalled by a legal challenge by
the City of Baltimore, the net effect of which continues to deprive
BGE's residential customers - not only those in Baltimore City, but
all its customers throughout Central Maryland - of the opportunity
to phase-in market prices under favorable terms. "Despite what
others may say, the increase in electric bills is real and is a
reflection of nothing more than the transition from rates frozen at
6.5 percent below 1993 levels to market prices during a global
energy crisis. That is why throughout the past several months, we
have remained steadfast in our commitment to work with all
stakeholders in an effort to find a viable solution for the benefit
of our customers, while at the same time, ensuring the continued
financial strength of BGE. We believe that the rate stabilization
plan, as approved by the Maryland Public Service Commission,
achieves these objectives by offering BGE customers an attractive
option for easing the transition to market prices beginning July 1,
2006. "Unfortunately, the recent court order preventing BGE from
communicating with its customers will only serve to confuse an
already frustrated customer base. It is our hope that through
today's appeal, the court will lift the stay on communications
related to the rate stabilization plan, thereby permitting BGE the
opportunity to provide its customers with the information they need
to make a timely and informed decision. Time is of the essence.
Denying communications with less than 60 days to go before the
increase in electric costs becomes effective, against a backdrop of
politically charged rhetoric, is counterproductive and only serves
to confuse our customers." Yesterday in a filing with the Circuit
Court for Baltimore City, BGE also requested that the case be
remanded back to the PSC for cross examination pertaining to the
Rate Stabilization Plan. BGE contends that the PSC order approving
the optional rate stabilization plan is valid as it stands.
However, BGE is seeking to expedite resolution of the rate
stabilization plan so that its customers will have the option to
phase-in the market prices on July 1. Constellation Energy
(http://www.constellation.com/), a FORTUNE 200 company with 2005
revenues of $17.1 billion, is the nation's largest competitive
supplier of electricity to large commercial and industrial
customers and the nation's largest wholesale power seller.
Constellation Energy also manages fuels and energy services on
behalf of energy intensive industries and utilities. It owns a
diversified fleet of more than 100 generating units located
throughout the United States, totaling approximately 12,000
megawatts of generating capacity. The company delivers electricity
and natural gas through the Baltimore Gas and Electric Company
(BGE), its regulated utility in Central Maryland. DATASOURCE:
Constellation Energy CONTACT: Robert L. Gould of Constellation
Energy, +1-410-234-7433 Web site: http://www.constellation.com/
Company News On-Call: http://www.prnewswire.com/comp/084087.html
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