FIGHTING FOR REAL SOLUTIONS—As of July, 1.2 million Marylanders are paying the first 15 percent of a 72 percent electric rate increase. Maryland PIRG is working to address the electric system’s underlying problems to prevent unreasonable rate hikes in the future.

On June 23 the Maryland General Assembly passed Maryland PIRGsupported legislation that begins to address the underlying problems that caused a 72 percent rate increase for 1.2 million Maryland residents.

The bill calls for the replacement of the current members of the Public Service Commission and requires that the merger between Constellation and Florida Power and Light benefits the public. It also gives the Commission strong directives to consider options to make rates more fair.

“The General Assembly took the fi rst step in what will be a long road to fi x our deregulation debacle,” said Maryland PIRG Policy Advocate Johanna Neumann.“Now the Public Service Commission must shine a light into areas that have been shrouded in secrecy for the past seven years.”

In 1999, energy companies, including Enron, promised that deregulation would bring competition and lower prices to Maryland. Instead, we’ve seen the largest rate increase in Maryland history and energy efficiency programs have been abandoned.

Maryland PIRG is the lead consumer group working on this issue, and will organize testimony and present research to the Public Service Commission about the options available to them to improve the rules. The PSC’s recommendations, due December 31, are sure to shape legislation for the 2007 session.

“Consumers should pay rates based on the cost of generating energy, and energy effi ciency programs need to be considered,” said Neumann. “Ultimately, we need to rewrite the rules of how electricity is bought and sold in Maryland so that they benefi t consumers.”