Power Rate Relief in Md. Squelched in Final Minutes

Senate Snags Costly On Nail-Biting Day; Special Session Possible

A deal that would have brought homeowners across Maryland a measure of relief from soaring electricity bills this summer collapsed in the final minutes of the General Assembly session last night as lawmakers adjourned without an agreement.

Gov. Robert L. Ehrlich Jr. (R) said he is considering calling the legislature into a special session as early as tomorrow that would last until lawmakers approve a plan addressing the rate increases. He might also pursue options on his own, aides said.

Ehrlich, legislative leaders and the state's largest utility labored into the late hours over legislation that would have held increases to 15 percent this year and phased in the rest of the 72 percent rate increase for Baltimore Gas and Electric Co. customers by January 2008.

Pepco customers in Montgomery and Prince George's counties would have had the option of spreading out an increase of 38.5 percent, starting at 15 percent in June.

The deal would have kept in place the state's current utility regulators but required the governor to appoint new members to replace some members of the Public Service Commission as early as next year. The agreement would also have allowed a merger involving BGE's parent company, Constellation Energy Group, to move forward.

Early optimism about the agreement, four weeks in the making, began fading in the late afternoon as time ran short on the 90-day session that ended at midnight. "Every hour that goes by, it looks rather gloomy," said Sen. Thomas M. Middleton (D-Charles).

At 9 p.m., the outlook was bleak when lawmakers got their first look at the legislation. Senators in both parties voiced deep concerns about the measure during an impromptu Finance Committee hearing held in the Senate lounge.

"I can't take this bill home. The 72 percent never goes away; it just gets delayed," said Sen. Lisa A. Gladden (D-Baltimore).

An hour later, with little progress being made in committee, Chip DiPaula Jr., the governor's chief of staff, was called in to make a pitch for immediate action.

"This is the best option," DiPaula said, standing before senators who were seated on red leather couches in front of a fireplace. "If we don't solve this, it's going to be a lot worse."

When it looked as though House legislators would have to take up the measure on their own, Middleton ushered his committee to a reception room to quickly move the bill to the Senate floor without debate.

"There's not going to be any discussion? None?" asked Sen. E.J. Pipkin (R-Queen Anne's).