The Maryland Public Service Commission has the power to block the merger deal if they feel it hurts the public and ratepayers.
We feel the merger is not a good deal for Baltimore (and the surrounding areas) because it does not protect jobs and has no guarantees for rate relief. The Governor of Maryland, the Maryland People’s Counsel, EDF (a BGE stakeholder), and members of the local press are all against the deal for various reasons.
At the end of November, the Public Service Commission is holding a series of hearings where customers can voice their opposition. Below are some facts and resources to explain why customers should be mad at BGE and not trust this merger deal.
Job losses: Approximately 21% of Baltimore’s residents are unemployed or underemployed. Despite promises of new job creation, Exelon’s COO, Chris Crane, has admitted ‘the most impactful job cuts’ will be in Baltimore.
Constellation offers $100 credit for customers: To sweeten the deal, Constellation is offering a one time credit of $100…this is insulting. For many struggling with high BGE bills, $100 isn’t even enough to cover one month’s bill.
Deregulation has been a failure: The PSC should re-regulate Maryland’s electricity markets to ensure reliability of service and cap rate increases for BGE customers. Back in 1999, when utility executives were pushing energy deregulation in our state, they promised it would be good for us. Instead, after deregulation passed, electric rates have gone up 104% over the last decade.
Constellation CEO Mayo Shattuck could walk away with a $20.5 million payout: While this deal offers very little to consumers, it could prove incredibly lucrative for Constellation CEO Mayo A. Shattuck III, who could walk away from the merged company with a $20.5 million payout.
Loss of Baltimore’s last Fortune 500 company: With headquarters moving to another city, how can this be good for Baltimore?
Exelon receives massive corporate subsides, depriving Maryland of $17 million in much needed funds. The recent Citizens for Tax Justice report, “Corporate Taxpayers & Corporate Tax Dodgers, 2008-10,” lists 249 corporations that paid less than their fair share in federal corporate income taxes in 2010. Exelon, the same company that is acquiring BGE and parent company Constellation energy, got a 2010 federal tax subsidy of OVER $914 MILLION. Read more about it in our blog post.