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Uh-Oh: Maryland PSC Dumps BG&E's Smart Metering Project; Utility Exec Says He's ‘Dumbfounded’ By SGN Staff Jun 22, 2010 - 2:00:19 PM
In a decision that was a pleasant surprise for some and a serious bummer for others, the Maryland Public Service Commission (PSC) knocked down Baltimore Gas & Electric's (BG&E) proposal to have customers pay most of the initial costs of a Smart Grid metering project, and said the utility should pay some of the $835 million project cost. BG&E President Kenneth DeFontes was quoted in the Baltimore Sun newspaper as saying he was "dumbfounded" by the decision. PSC members explained their decision this way: "The proposal asks BG&E's ratepayers to take significant financial and technological risks and adapt to categorical changes in rate design, all in exchange for savings that are largely indirect, highly contingent and a long way off." Consumer advocates praised the decision as a win for consumers, but a Gridwise® Alliance statement said the Smart Grid advocacy organization was "extremely disappointed" in the PSC action. While the PSC said BG&E is welcome to return with a revised proposal, DeFontes said he was hard-pressed to see how his company could do so in light of the ruling. BG&E had won approval for a $200 million Smart Grid stimulus grant to help reduce the cost of the proposed five-year meter deployment, but the Energy Department is saying — tactfully — use it or lose it. DOE will consider allocating the funds elsewhere if BG&E can't continue with the project.
Quick Take: If you haven't guessed, this is a severe "uh-oh" moment that could reach well beyond Baltimore. The Maryland PSC decision could trigger similar responses from other regulators and make other utilities with pending metering projects gun-shy, to say the least.
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