The Public Service Commission has subpoenaed documents from utility executives that it hopes will shed light on how much money Constellation Energy Group makes selling electricity to its BGE subsidiary and on whether there is anything improper in the dual roles that some executives play at both companies.
The demand yesterday follows a May ruling by the commission that raised questions about possible conflicts of interest between the two companies that could benefit Constellation to the detriment of Baltimore Gas and Electric Co. customers. Constellation executives deny any conflicts of interest and say BGE customers benefit from its being part of a larger corporation.
The action reflects a more activist role by the commission since Gov. Martin O'Malley replaced several appointees of his predecessor, Republican Robert L. Ehrlich Jr., effectively taking control of the regulatory panel.
O'Malley, who campaigned on a pledge to block a steep BGE electricity rate increase but found that he was unable to do so, sent the PSC a letter this month asking for expedited hearings on the corporate relationship.
"Constellation is recording record profits while consumers are paying record increases," O'Malley, a Democrat, said yesterday. "The question ... is whether the relationship between Constellation the parent company and BGE the electric distribution company is a relationship that allows for the earning of profits that are unreasonable and unfair at the expense of Maryland consumers."
In its subpoena, the PSC asks Constellation to provide documents detailing how much money it is making selling electricity to BGE, which buys its power from wholesale suppliers through competitive bidding.
The commission also asked for minutes from board meetings, salary information and other documents with the aim of determining whether BGE executives' decisions are influenced by the utility's ties to Constellation.
The subpoena was issued on the day an energy summit hosted by O'Malley in Annapolis focused on long-term solutions to rising energy costs and to the threat of global warming.
Hearings start today
The PSC is scheduled to begin two days of hearings this morning that will look at ways to address the state's growing energy shortfall.
Although the administration is concentrating on conservation and ensuring that Maryland will have adequate energy supplies, the subpoena is a reminder that O'Malley has not given up on short-term relief for customers socked with a 70 percent increase in electric rates over the past year.
