ANNAPOLIS (AP) — The Maryland Public Service Commission kicked off a two-day conference to discuss the state’s future electricity needs yesterday, a day after it issued a subpoena for records to explore Constellation Energy Group’s financial relationship with its subsidiary, Baltimore Gas and Electric Co.
Steven Larsen, chairman of the commission, said the focus of the conference was to estimate expected growth and demand in electricity in coming years and try to begin charting a course on how to meet the challenges, while mitigating prices.
Utility company representatives discussed energy demand forecasts for the next five to 10 years. Commissioners heard from PJM Interconnection, the regional grid operator, as well as representatives from Pepco and BGE. The conference also included conservation specialists. The conference is scheduled to continue today.
Mr. Larsen, speaking of the subpoena, said the commission wants to examine profit margins on the electricity Constellation sold to BGE. He said he hopes to have a package of new information available before the next General Assembly session to answer questions about how the two companies do business together.
“I think what we need to do as a commission is ensure that there’s nothing inappropriate going on,” Mr. Larsen said during a break at the conference. “We’re not making any assumptions either way. We just want to gather the information and hopefully be able to take steps to lower rates for consumers.”
The subpoena seeks documents on job descriptions of responsibilities for executives who hold positions in both companies. It also seeks minutes from meetings and organizational charts for BGE management as it existed in 2005, 2006 and 2007.
Mr. Larsen said the commission wants to examine whether a conflict exists between the financial interests of Constellation, which sells electricity, and BGE, which provides electricity to consumers.
The subpoena was sent to BGE on Wednesday, as Gov. Martin O’Malley, a Democrat, was holding an energy summit in Annapolis that brought together more than 200 people, including lawmakers, utility officials and academics.
They exchanged ideas about energy conservation and future power supply concerns during a round-table discussion.
Paul Allen, vice president of corporate affairs at Constellation, took part in the summit. He told the Baltimore Sun that the company will cooperate with the commission.
“If they need to go through a process of examination to satisfy themselves, we will of course be constructively engaged in helping them understand it,” he said.
Mr. Allen also said the company makes sure employees are aware of the rules to be followed.
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