Maryland Public Service Commission

The Constellation Experience

Ring-fencing after the subprime meltdown.

When Électricité de France stepped in to buy Constellation Energy’s nuclear assets and help the company avoid bankruptcy, the Maryland Public Service Commission conditioned the sale on a set of ring-fencing provisions. The industry has been using such structures to protect ratepayers in complex and high-risk M&A transactions since the 1990s. The protection isn’t foolproof, however—and it can bring problematic regulatory trade-offs.

Summer of Discontent

Smart-grid planners feel the heat.

State utility regulators begin to question the benefits of smart grid technology, and customers take to the streets in public protests and demonstrations to oppose installation of smart meters.

Stakeholder Collaboration

Consensus building is an imperative and educational art form.

With public opposition rising against almost any kind of utility project or investment, collaboration among stakeholders with widely divergent points of view never has been more critical. Three recent utility cases demonstrate how a formal stakeholder collaboration process can build support for otherwise contentious decisions.

People (August 2009)

Duke Energy named Lynn J. Good group executive and CFO, replacing David L. Hauser, who left Duke to become chairman and CEO of FairPoint Communications. Pepco Holdings named Anthony J. Kamerick as senior v.p. and CFO. And others...

Standard-Offer Service: Beauty or Beast?

Is development of retail choice compatible with best-priced standard-offer service for smaller customers? Conflicting policy priorities threaten to distort Maryland’s retail energy markets.

Buyer's Remorse

The PJM complaint and the rising cost of electric reliability.

Who says ratepayers must accept the traditional measure of electric reliability—a single one-hour outage every ten years? If shown the bill ahead of time, might they decide otherwise; that such luxury is no longer affordable? Consumers are making similar decisions about gasoline and mortgages. Why not electricity?

Natural-Gas Revenue Decoupling: Good for the Utility, or for Consumers?

Among a host of arguments for and against RD is the question of upside for consumers.

Retaining adequate earnings is the driving motive for revenue decoupling (RD) among gas utilities, while conservationists view RD as necessary for the removal of resistance to energy efficiency. But the benefits of RD to consumers are less certain.

People

(July 2006) The New York Independent System Operator named Rana Mukerji to serve as vice president, market structures. CMS Energy elected Jon E. Barfield as an interim appointee to the company's board of directors and also re-elected 10 incumbents. Pepco Holdings Inc. elected Frank O. Heintz and Lester P. Silverman to the board of directors. TXU Corp. elected the following directors: E. Gail de Planque, Leldon E. Echols, Kerney Laday, Jack E. Little, Gerardo I. Lopez, J.E. Oesterreicher, Michael W. Ranger, Leonard H. Roberts, Glenn F. Tilton, and C. John Wilder. And others...

A Brief History of Rate Base: Necessary Foundation or Regulatory Misfit?

Regulators today must define earnings for energy retailers virtually bereft of fixed assets.

Applying the traditional rate-base concept to the new hybrid companies is where the gap between the old and the new regulatory paradigms resembles a deep schism. The current shifts in regulation should cause regulators to revisit and reconsider concepts that once reigned supreme in ratemaking.

Do Utility Mergers Deliver?

Not in all cases, or for all stakeholders. Here’s why.

The industry perceives substantial benefits from consolidating. But what is the track record? Does the regulatory and strategic landscape suggest these mergers are beneficial?