O'Malley Encouraging Utilities Commission To Assert Its Powers

The commission expects to consider re-regulating the electricity market, a move that would need approval from the General Assembly. It's unclear how such a change in policy would come about and whether it could lower rates.

As he has rolled out strategies, from loans for low-income ratepayers to conservation measures, to help consumers and utilities be more energy efficient, O'Malley has asked his new regulators to examine BGE's relationship with its corporate parent company, Constellation Energy Group. He called on it to determine whether customers should receive rebates and whether Constellation should be broken up.

A BGE spokesman has said the company is "confident that both Constellation Energy and BGE have acted in full compliance with all federal and state regulatory requirements."

BGE serves about 1.1 million customers in central Maryland, including parts of Prince George's, Anne Arundel and Howard counties.

The new commission has ruled in only a few cases so far, on rate increase requests by Pepco and Delmarva Power, the state's other utilities. The commission granted lower increases in each case, a common practice.

"It's way too soon to say how they're operating," said Theresa Czarski of the People's Counsel, an advocate for ratepayers. "But I'm appreciative of their level of interest in questioning companies."

Verizon executives said last week's hearing marked the company's first appearance before the commission on a service issue. They said they needed more time to figure out why hundreds of customers have waited days and even weeks for repair crews to fix their telephones. But they were emphatic that complaints of missed appointments and delayed repairs were rare exceptions to a strong record of service.

Larsen called the case the "most immediate example" of the commission's more aggressive approach to regulation, which he said has been adopted slowly by some on the commission staff.

He said some staff members asked, "Why don't you give them a phone call?" But, Larsen said, "it was obvious to me that we needed to do something immediately."

Verizon spokeswoman Sandra U. Arnette would not comment because of the company's pending case.