Energy Industry

RUJIGOU, China -- As dusk settles in and the wind blows over the bleak mountains, China's largest underground coal fire glows angrily through the earth's surface. The ground smolders, flames flicker and smoke billows across the valley.Legend has it that the fire was started 100 years ago by a disgruntled miner, but it owes its existence today to the successes and failures of China's economic reforms.With demand for coal up and enforcement of regulations down, illegal mines have proliferated, their shafts bringing fresh sources of oxygen to the fire.

The basic problem with Charles Campbell's commentary on energy policy is that drilling for oil and gas, which he strongly advocates, creates toxic substances that continue to poison the planet ("U.S. energy policy: Slow national suicide," Nov. 21). Mr. Campbell makes no mention of Germany and other countries which are decades ahead of us in terms of solar energy and conservation. He also makes no mention of the environmental and social costs of cheap oil, or of the vast amounts of energy wasted in gas-guzzling cars and trucks because we lack decent mass transit systems.

WASHINGTON -- The U.S. energy industry, already staggered by Hurricane Katrina, braced for another punch this weekend as Hurricane Rita headed for oil- and gas-producing areas along the Texas and Louisiana coast. A second hit could raise the chances for a recession, some analysts fear. The Gulf of Mexico is home to about a quarter of the country's oil and natural gas production, with Houston -- close to where the rapidly strengthening storm is projected to come ashore Friday or Saturday -- serving as the key refining center.

In his State of the Union address, President Barack Obama channeled the spirits of John F. Kennedy, Ronald Reagan and Henry Ford all rolled into one in his call for America to innovate its way into future economic competitiveness. Among his bold ideas for how the U.S. can meet its upcoming challenges was the diversification of our energy portfolio, and in particular the development of our renewable energy capacity. The onus now falls on Congress to develop an equally bold plan to see that challenge through.

The new national energy policy proposed by President Bush yesterday gives producers plenty to celebrate - including the relaxing of environmental regulations, the opening of federal lands for oil drilling, the streamlining of the permit process for power plants and refineries, and measures to resurrect the nuclear power industry from a 25-year slumber. But even before Bush announced his policy, the energy industry had already responded to regional shortages of electricity with the planning and construction of new power plants and had answered increased seasonal demand for gasoline with a boost in production.

The siren call of the oil drillers sounds so sweet. More jobs, lower energy prices, greater independence from foreign fuel sources - all accomplished in an environmentally safe and sound manner. Ha! President Bush and his allies in the energy industry are once again trying to play the American people for suckers, promising far more than they can deliver with no accounting for the considerable cost. And directly in their sights this time is a 2.9 million-acre tract off the coast of Virginia, where spills and other damage threaten Assateague Island, the Delmarva Peninsula and ultimately the Chesapeake Bay. Virginia officials have foolishly exposed themselves to this potential exploitation by approving legislation that would allow exploration for natural gas, signaling a willingness to ease a 25-year ban on oil and gas drilling on the Atlantic and Pacific coasts.

Allegheny Energy Inc. reported yesterday a 28 percent decrease in fourth-quarter earnings that was attributed to recent acquisitions, unusually warm weather and a slow economy. The economy and volatile conditions within the energy industry also ended Allegheny's plan to split into two publicly traded businesses this year and forced the company to cut 2001 earnings forecasts in December. Yesterday, company officials said an initial public offering planned for the spring has been canceled because of unfavorable market conditions.

Allegheny Energy Inc. said yesterday that warm weather and lower energy prices helped push down first-quarter earnings. In the three months that ended March 31, the Hagerstown utility reported income before special items of $89.7 million, down from $102.8 million in the corresponding period last year. Net income, including a gain from a land sale, was $101.6 million, up from $71.7 million, including the effect of an accounting change, in the year-earlier quarter. Earnings were 71 cents a share, down from 93 cents, excluding the one-time items.

WASHINGTON - In a long-sought victory for the energy industry, the Bush administration announced yesterday sweeping changes to clean-air rules that it contends will help industrial plants make necessary renovations to reduce pollution. The decision, perhaps the most significant environmental action to date by the Bush administration, was criticized by environmentalists. They say the changes will actually make it easier for industrial plants to increase their dirty emissions. Administration officials strenuously disputed criticism that their decision would roll back the Clean Air Act rules that require industries to modernize their pollution controls when their plants undergo major expansions or upgrades.

NEW RULES that would have required appliances sold in Maryland to meet minimum energy efficiency standards were vetoed by Gov. Robert L. Ehrlich Jr. last spring because, he said, setting such requirements is not the state's job. It's up to the feds, he argued, to promote and regulate energy efficiency. In the absence of federal action, Maryland had no "prerogative to force energy-efficient products on consumers, many of whom cannot afford them." Thank goodness most of the General Assembly doesn't agree with him; the lawmakers will almost certainly override his veto when they reconvene next month.

With the congressional election season ramping up for this fall, it's impossible to ignore the ugly influence that money has on our elective system. As Republican and Democratic former members of Congress, we have seen this influence firsthand. Money severely impacts who can run for office, who gets elected and who has a seat at the table when policy is made. It casts a pall over our government that must be addressed if we are to realize our basic democratic ideal of government of, by and for the people.

Gov. Martin O'Malley laid out a blueprint yesterday for a partial return to a regulated energy industry, rejecting a decade-old policy that was intended to lower consumer prices through market competition but is widely regarded as a failure. In the midst of an outcry over budget-busting utility bills, O'Malley unveiled a plan that would allow the state to regulate future power plants if such a move is determined to be in the best interest of customers. The proposal also would allow the state to decide when new plants are built, taking that authority from utilities.

The New Year seems certain to bring Gov. Martin O'Malley back into the energy regulation game. It's the eve of 2009, but a year from now, he'll be immersed in a campaign for re-election. He'd like to be running on a record of rate relief for consumers of electricity - and possibly re-regulation of the energy industry. Thus, at the governor's urging, Attorney General Douglas F. Gansler recently held that the Public Service Commission has the authority to review a blockbuster deal struck between Constellation Energy Group and one of its shareholders, Electricite de France.

A year ago, the leaders of Baltimore-based Constellation Energy Group and PPL Corp., its utility neighbor in Pennsylvania, represented the energy industry's sharp division over whether the revival of nuclear power was at hand. Mayo A. Shattuck III, Constellation's chief executive, said the economics were right for a nuclear comeback after 30 years of dormancy. PPL Chairman William F.

The siren call of the oil drillers sounds so sweet. More jobs, lower energy prices, greater independence from foreign fuel sources - all accomplished in an environmentally safe and sound manner. Ha! President Bush and his allies in the energy industry are once again trying to play the American people for suckers, promising far more than they can deliver with no accounting for the considerable cost. And directly in their sights this time is a 2.9 million-acre tract off the coast of Virginia, where spills and other damage threaten Assateague Island, the Delmarva Peninsula and ultimately the Chesapeake Bay. Virginia officials have foolishly exposed themselves to this potential exploitation by approving legislation that would allow exploration for natural gas, signaling a willingness to ease a 25-year ban on oil and gas drilling on the Atlantic and Pacific coasts.

One year after the General Assembly fought a drawn-out battle over hefty electricity rate increases, some Maryland legislators thought their ideas for helping energy consumers that have languished for years might have a shot at passage. But it appears some of those proposals might be relegated to further study rather than put to a vote. They include bills to boost energy conservation over the next decade and to better enable local governments to buy electricity at bulk rates for residents.

AMAZINGLY, House and Senate negotiators have managed to combine two bad versions of energy legislation into a final product that's worse. Despite claims to the contrary, the measure won't lower energy prices, spur the economy, create jobs or promote energy conservation and efficiency. Instead, it fosters the faulty notion that if environmental and other regulatory burdens are lifted, the good old fossil-fuel industry can meet the challenge of increased energy demand. The legislation's approach to renewable energy sources is to subsidize the producers and provide tax credits to consumers.

OUR ELECTRICITY grid is held together with bobby pins and baling wire. The Middle East oil cartel is still kicking sand in our face. Our skies and seas are choked with pollution from fossil fuels. And yet, the lawmakers in Washington promising a comprehensive new energy policy are renewing their tired, old campaign to drill in Alaska's wildlife refuge, the nation's last pristine oasis. So 20th century, so counterproductive, so not going to happen is this proposition that it looks like a diversionary tactic designed to call attention away from the rest of the energy bill, which is only slightly less awful.

Modern American capitalism is the world's envy of growth. It successfully harnesses the human drive for competitiveness with the human need to create and innovate. Apple booms with the iPod, and Microsoft works day and night to create a better version. But when competition becomes muted and market innovation is deemed not essential, the cornucopia that we call today's capitalism stalls and society is harmed. This is exactly what has happened within our energy giants. The most efficient way of developing new energy resources should be through private enterprise.

Attack on BGE poses threat to business I am a proud Baltimore Gas and Electric Co. employee and a resident of Baltimore County - a stone's throw from the city line. I grew up around Baltimore, attended local schools and am raising a family here. But will I be able to retire here? I'm not so sure. I'm afraid the political climate is going to drive my company away from Maryland ("Rate bill passes," June 15). The political approach the legislature has taken on the electricity price increase has relied on the age-old "we-vs.