In a disturbing decision, the Maryland Public Service Commission (PSC) this week rejected Baltimore Gas & Electric's (BG&E) plan to deploy 1.2 million meters. Despite providing a potential $2.5 billion return on a $500 million initial capital investment and getting $200 million in DOE funding, the plan was rejected because the PSC was not convinced that it justified the proposed customer surcharge or that it would enhance the electricity transmission grid or the company's distribution 'backbone.' However, BG&E can resubmit its proposal dropping any proposed cost recovery surcharge and including a business case that is not centered on mandatory time of use pricing. The decision is troubling because the upcoming Clean Air Act legislation threatens to shut down 30 percent of all coal-fired plants, making it essential that utilities like BG&E have smart meter deployments to help meet demand through demand response and energy efficiency. The decision also jeopardizes a portion of the $200 million in DOE funding that BG&E was awarded. For more information, contact the UTC Legal/Regulatory Department.
↧