Thursday, March 29, 2012

Senate rejects monthly surcharge for some utility customers

The Senate on Wednesday shot down a bill to compel the Public Service Commission to approve a $2 monthly surcharge for customers of Washington Gas Light that was rejected in November.

The bill was reconsidered Wednesday after it was voted down 22-23 Tuesday, picking up another no vote in the second tally.

“This imposes a fee on our constituents without Public Service Commission approval,” said Sen. James Rosapepe, D-Prince George’s. “It is upends 100 years of utility regulation.”

The bill would have raised $150 million over five years for the utility to fund pipeline replacement and upgrades, but the measure was shot down by a narrow vote of 24-22, with no party line distinction.

In their request to collect the surcharge, Washington Gas Light told the PSC they could shoulder the costs of the upgrades on their own. The PSC denied the surcharge request but green-lighted the company’s plan to upgrade their pipelines.

Rosapepe also quoted the bill’s fiscal note, which says the surcharge “shifts the risk from the gas or electric companies to the ratepayers and decreases cost containment incentives.”



Read more: http://marylandreporter.com/2012/03/28/senate-rejects-monthly-surcharge-for-some-utility-customers/#ixzz1qWT4DGcP
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