Gov. Martin O'Malley vowed yesterday to "spare no expense" in defending the state if Constellation Energy Group does sue to recover $386 million in credits the company says it was forced to give utility customers.
In a State House news conference, O'Malley said he had conferred with legislative leaders and Attorney General Douglas F. Gansler over the company's threat to sue, which comes on the heels of a report by state regulators saying that the 1999 law deregulating the energy industry was lopsided in favor of Constellation.
"We will spare no expense when it comes to investing in whatever additional legal help that we need -- or whatever professional experts and consultants we need, or expert witnesses -- in order to stand up for the best interests of the people of our state," the governor said.
The credits were the only significant financial concession lawmakers extracted in 2006 from the energy company in the aftermath of a 72 percent rate increase announced for customers of Baltimore Gas and Electric, a Constellation subsidiary. Constellation was seeking state approval at the time to merge with a Florida-based energy company, but that merger later fell apart.
Constellation officials contend that the credits are an unconstitutional taking of the company's property, and they have complained publicly that the Public Service Commission report on deregulation was unfair and wrong.
O'Malley said he believed the General Assembly acted lawfully, and he reiterated his defense of the PSC, whose chairman and majority he appointed, saying it had been ordered by the legislature to review the deregulation deal.
The energy company will have an opportunity to rebut the report in a public PSC hearing next week, the governor said. Meanwhile, he said he thought it was in the best interests of consumers and utilities alike to have "stable and predictable" regulation. He also expressed a willingness to talk things over with Constellation representatives.
"I return all calls," O'Malley said
