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Governor Opposes Electricity Rate Plan

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Ehrlich aides said they believe a hearing could help galvanize support for a veto. But McDonough said a hearing could highlight the shortcomings of Ehrlich's plan.

More damaging to the governor, though, could be taking a step that would fuel the perception that Ehrlich is siding with power company executives instead of working-class families, said James G. Gimpel, a political science professor at the University of Maryland.

As a Republican running for reelection in a state where Democrats hold a heavy numerical advantage, Ehrlich should "run counter" to the stereotype that Republicans cater to corporate interests, Gimpel said.

"The problem with acting in a way that fits the stereotype is that it sticks in memory longer," he said. "For the governor, that's turned this into a dangerous situation."

But some Republicans saw wisdom in the governor's decision to weigh the issue before the June 22 deadline for a veto.

"He's wise to be deliberative and collect more information," said Senate Minority Leader J. Lowell Stolzfus (R-Somerset), who opposed the measure. "He has to stick with his bottom line if he feels it hurts the consumer. If he feels it doesn't, then he won't."

Ehrlich has framed the issue as a battle to help consumers. His policy director, Joseph M. Getty, said the governor demonstrated that stance while negotiating a deal with BGE's parent company.

He said the governor spent the final weeks of the legislative session "banging on" Constellation Energy Group Chief Executive Mayo Shattuck for concessions.

But that characterization is at odds with how the governor and Democratic negotiators described his role. Deep into negotiations in late March, Ehrlich declared himself a "neutral broker," shuttling between the state's largest electric utility and the Democratic-controlled legislature.

During dozens of private meetings in Ehrlich's second-floor suite of offices, Democratic participants said the governor most often raised concerns about how the legislation would affect Constellation and its pending $11 billion merger with a Florida power company.

When legislators, led by Sen. E.J. Pipkin (R-Queen Anne's), tried to press Constellation to return more than $500 million to ratepayers, negotiators said Ehrlich would ask how such a move would affect the company's credit rating.

"Everyone came to the table in good faith," said Del. Brian R. Moe (D-Prince George's), who was part of the House negotiating team. But the governor "was more worried about what Wall Street was feeling about the deal," he said.

In one tense meeting, Ehrlich asked lawmakers if he should bring in Constellation negotiators, who had not moved from their latest offer of $375 million in concessions.

Senate President Thomas V. Mike Miller Jr. (D-Calvert) suggested that the governor wasn't leaning hard enough on the company.

"You're the governor, you're the chief executive, and they're not treating you like the governor," Miller said, according to accounts of the conversation both he and the governor recalled.

"Neither are you, Mr. President," Ehrlich responded, before stalking out of the room.


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