"I'm sure that point of view will be represented in Annapolis," Abbruzzese said. "This will be debated."
Sen. Thomas M. Middleton, a Southern Maryland Democrat who chairs a committee that handles utility issues, said protecting fixed-income and poor residents would be a high priority. "If we've got $100 million, we've got to take care of those folks," he said.
Johanna Neumann, policy advocate for the Maryland Public Interest Research Group, said she hopes the legislature will resist the temptation to directly refund the sale of pollution credits to consumers.
"I could see the political advantage of rebating the money," she said, "but by actually investing ... in energy efficiencies, consumers will see greater benefits and greater savings, because we will able to avoid blackouts, future rate shocks and avoid costly new transmission lines."
In anticipation of the extensive rate increases in 2007, some environmental and consumer groups have called for the state to buy or build its own power plants, arguing that the landmark deregulation of the industry in 1999 had clearly failed.
The plan released today calls on the PSC to continue studying the creation of a Maryland Power Authority, but recommends no immediate action. Consultants hired by the commission have said it would cost $18 billion to $24 billion for Maryland utilities to buy back power plants they relinquished during deregulation.
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."
gadi.dechter@baltsun.com
