Sources said Larsen wanted to return to private practice, where he made more money than in public service despite O'Malley's decision to boost pay for commission members. Larsen made $187,000 a year as chairman while Schisler earned $117,000.
Larsen was tapped by O'Malley based on his reputation as a fearless regulator. As a former Maryland insurance commissioner, Larsen earned lawmakers' praise for stopping the for-profit conversion of CareFirst BlueCross BlueShield in 2003, a deal he determined would have enriched the health insurer's executives at the expense of consumers.
Power industry officials and consumer advocates described Larsen as a quick study, who became an expert in the complexities of the competitive wholesale energy market despite no background in the industry. His appointment last year signaled a shift in direction for the commission, which had previously been packed with appointees of former Republican Gov. Robert L. Ehrlich Jr.
Larsen's panel began second-guessing the former commission's decisions, opening inquiries into the 72 percent rate increase for BGE. After a series of hearings, the commission sharply criticized utilities and past commission decisions, but it concluded there was nothing it could do to stop the full rate increase.
The PSC's decision fueled criticism of the new governor for not fulfilling a central campaign promise. Since then, rates rose further as wholesale energy prices continue to increase throughout the Mid-Atlantic.
"It's awful hard to be in that position and have a governor who wants you to reduce rates - and then energy prices keep going up and make that impossible," said Mike Powell, a lawyer for Maryland Energy Group, which represents factories, hospitals and other large energy users.
Both Democrats and Republicans in the General Assembly said Larsen did a good job leading the PSC.
"He certainly worked to be nonpartisan, and with both sides of the aisle," said Del. James King, an Anne Arundel County Republican on the Economic Matters Committee, whic handles many of the energy issues. "Unfortunately for me and every other resident in the state of Maryland, I don't think we solved a lot of the issues that we face with the energy situation, but I don't think that's from any lack of effort."
Del. Dereck E. Davis, a Prince George's County Democrat and chairman of the Economic Matters Committee, said that Larsen brought a pro-consumer bent to the commission and restored confidence in the agency's ability to give consumers a "fair shake."
