For Larsen, PSC was never about the Public or Service

Public Service Commissioner Steve Larsen is stepping down, and I think that Marylanders should be happy to be rid of him.

Larsen was never the guy O'Malley promised us, promising a professional regulator who was going to make sure energy rates for consumers were lowered. Instead, we got a professional statist with a long record of sticking it to taxpayers who was more interested in cockamamie sticking it to taxpayers and keeping rates as high as possible in direct contradiction to Governor O'Malley's promise.

Of course, the Baltimore Sun's article on Larsen was a complete puff piece, talking about how Larsen was a "quick study" of energy issues that he was unqualified to be discussing. And of course there was talking about Larsen's great bipartisanship, which meant we got a quote from the one Republican always willing to kiss Governor O'Malley's ass:

Both Democrats and Republicans in the General Assembly said Larsen did a good job leading the PSC.

"He certainly worked to be nonpartisan, and with both sides of the aisle," said Del. James King, an Anne Arundel County Republican on the Economic Matters Committee, whic handles many of the energy issues. "Unfortunately for me and every other resident in the state of Maryland, I don't think we solved a lot of the issues that we face with the energy situation, but I don't think that's from any lack of effort."

I would say that we should hold up that Governor O'Malley's new PSC Commissioner is going to be more sensible, but guess what? This one's a trial lawyer:

Though little known in Annapolis, Nazarian handled numerous high-profile cases before Maryland courts. Among them was a 1998 case where he successfully challenged the arrest of paroled inmate Vincent Henderson. Henderson was among dozens who were re-arrested after the state concluded it had incorrectly calculated the amount of good behavior time due some inmates, and prematurely released them. The case resulted in the release of nearly 50 inmates.

Nazarian also represented the state in a series of lawsuits against the law firm of Orioles owner Peter G. Angelos. The case related to attorney's fees Angelos was due in connection with national tobacco litigation.

"His experience doing litigation and preparing cases is exceedingly good training for now trying to set policy and decide issues in the regulatory context," said Ralph S. Tyler, Maryland's insurance commissioner.

Great.....just what we need. And Tyler finishes up with this quote about the new Commissioner:

"I expect that [Nazarian] will lead the commission in a way where it will be fair, but it will be fair in looking out for the public interest," he said.

Not bloody liklely. But what I do suspsect is that Nazarian will be a chip off of the Larsen block, attempting to lead Maryland further and further into an O'Malleynomic hell of higher regulatory costs, higher energy costs, and ever higher taxes. Like Larsen, serving the public interest will be the farthest thing from his mind...

Change of Heart

Remember how the Sun used to kvetch and moan about how it was Governor Ehrlich's fault that energy rates were going up? Remember how the Sun waxed poetic about their joy that Martin O'Malley was going to fight for the little guy to keep energy rates lower? Well......never mind:

Meanwhile, the public can't lose sight of two hard and cold facts. First, BGE rates are a product of a global energy market and, as such, they aren't likely to go down - ever. And second, Maryland faces a potential energy shortage in the not-too-distant future. It's important that this be addressed, and Constellation's proposed expansion of certain generating facilities - most especially Calvert Cliffs - ought to be encouraged.

Maryland's "regulatory environment" hasn't become the calamity that Constellation executives are now telling analysts. But we acknowledge that a few more confrontational weeks like this past one could push it strongly in that direction. Those involved need to tone down the rhetoric, take the lawyers off speed-dial, and have a respectful dialogue about the state's energy future. Too much is at stake to do otherwise.

It's hard to believe that these words are coming out of Calvert Street, except for the fact that the O'Malley Administration has pushed the situation in this direction and obviously the Sun wants to provide political cover for their guy as they are always wont to do. But maybe, just maybe, the folks up there will realize that energy rates are not the fault of Republicans in Annapolis or in Washington, and maybe they will begin to help us pursue creative solutions to fix this problem for Maryland's taxpayers.

But probably not if it makes Martin look bad...

Shocking Developments

Looks like Governor O'Malley is going to fulfill his campaign promise to protect consumers from a massive BGE rate hike by allowing a massive BGE rate hike:

Baltimore Gas & Electric's residential customers will pay an estimated 5.5 percent more for electricity starting in June, largely as a result of federal rules that are driving wholesale energy prices higher, state officials and industry experts said yesterday.

The increase will add about $100 to the average customer's annual utility bill, although the amount will vary depending on usage, the state Public Service Commission said. When combined with increases imposed since rate caps expired in 2006, BGE customers will be paying 85 percent more for electricity than they were before the General Assembly approved deregulation in 1999.

News of the higher prices follows a complaint the PSC filed last week with the Federal Energy Regulatory Commission, blaming outdated wholesale market rules for handing windfall profits to certain Maryland power generators. A different set of FERC- approved rules contributed to the latest price increase, the PSC staff said. Both sets of rules and other factors driving wholesale electric prices higher are at the heart of the PSC's current drive to bring utility rates down.

No word yet on how the O'Malley Administration is going to blame the rate hike on Bob Ehrlich or President Bush. But I presume that this is just another phase of the roll-out of O'Malleynomics across our state.

Is there any campaign promise that Martin O'Malley plans to live up to?

O'Malleynomics

Governor O'Malley is going to release an energy plan as part of his legislative package, and once again it is going to be a case study in O'Malleynomics: spending lots of money to save less money;

Gov. Martin O'Malley's energy administration will release sweeping legislative and policy recommendations today that include new power-conservation laws, an estimated $100 million fund for environment-friendly initiatives and an emphasis on consumer responsibility for electricity consumption.

O'Malley, a Democrat who campaigned on the unfulfilled promise of undoing a 72 percent electricity rate increase for 1.2 million Baltimore Gas & Electric customers, appears likely to pursue an agenda in Annapolis that could further increase consumer costs in the short term. But administration officials say the proposals are needed to ensure long-term sustainability of Maryland's faltering power network and forestall the threat of blackouts as early as 2011.

Well, isn't that special? The Governor who railed against higher energy rates during his election campaign is going to propose legislation to....hike energy rates.

Of course, once again, the plan revolves around the idea not of generating new power sources, or making the business climate more appealing to energy companies, but tries to restrict the availability of power to consumers through forcible reductions in power usage and higher energy costs.

But just think about it for a second; passing tax credits to encourage the use of more efficient appliances. Carbon credit trading (even with the coming Federal Trade Commission investigation), with costs passed onto the consumer at the expense of more government revenues? New power-conservation laws? Does anybody for a second think that this is going to save power, reduce pollution, or do anything other than drive up the cost of living once again for Maryland's working and middle class families?

Of course, O'Malley's plan looks sensible compared to this lunacy:

Sean Dobson, the executive director of left-leaning Progressive Maryland, said lawmakers should give O'Malley's plan a chance to work.

"But if it turns out to be insufficient," he said, "the state should construct, own and operate its own ultra-efficient, clean-energy power plants and force utilities to pass along this electricity to consumers at a regulated, affordable rate."

I'm just glad that Dobson, in his role as head of Progressive Maryland, finally admits that Progressive Maryland is out to stick it to Maryland's working and middle class families.

The story in the Post has this gem:

Malcolm Woolf, the state's energy administrator, said that "we have ignored energy issues in the state" since the General Assembly agreed in 1999 to bring competition into the electricity market. He called the strategic plan an "opening salvo in a larger effort to take control of Maryland's energy's future."

He's right to a point; O'Malley did ignore the rate hikes he promised to stop and allowed the costs to be passed onto the consumer. But there are a couple of just odd statements in here (including the fact that competition was ever truly brought to the energy market). Can somebody explain to me what " larger effort to take control of Maryland's energy's future" entails? What does that mean? Are we talking about Dobson's Soviet style proposal? More regulation? Power cutoffs like they use to have in Romania? What other harebrained ideas could the administration possibly have up their sleeves as it relates to electricity?

O'Malley's energy plan is just another block in the giant game of Jenga known as O'Malleynomics. Using government in whatever means necessary in order to raise taxes, raise fees, and grow the size of government at the expense of Maryland's working and middle class families. while attempting to further control their behavior. If O'Malley was truly serious about reducing power consumption and improving the environment, there are alternative methods that produce greater long-term stability than carbon trading and by artificially inflating the price of power. And yes, that does mean unclogging the pipeline to allow for the construction of wind farms in Western Maryland, and the consideration of the construction of new nuclear power facilities.

Once again, O'Malley is putting politics ahead of people, and THAT friends may be the true keystone of O'Malleynomics.