Last week, in an escalation of the dispute, the company notified the state of its intent to sue to recover $386 million in credits granted to ratepayers under 2006 legislation meant to soften the residential rate increases.
"The lawsuit is, to me, disconnected," Larsen told lawmakers yesterday, when asked what impact it might have on the commission's continuing inquiry.
The General Assembly had directed the commission to review the deregulation agreement, he pointed out, and the commission has scheduled a hearing for today to give Constellation officials an opportunity to rebut the report.
Larsen said it would be "an unfortunate outcome" if Constellation followed through with another threat to build a nuclear reactor in New York instead of Maryland. The company has said that it hopes to begin construction this year on a 1,640-megawatt reactor in Lusby, with completion expected by 2015.
The regulator said such a large power plant would be key if the state hopes to avoid energy shortfalls in the next several years. He said other, smaller power plants in the pipeline, as well as consumer conservation efforts, might close the expected gap between demand and supply in the next few years. But the other projects in planning won't make up the difference if the Calvert Cliffs plant is not expanded, Larsen said.
Not all lawmakers are eager to see Larsen continue to investigate Constellation.
"Is there any kind of end in sight?" asked Sen. Katherine A. Klausmeier, a Baltimore County Democrat.tim.wheeler@baltsun.com
