Favorable
House Economic Matters Committee
16 February 2010
When the electricity industry was deregulated in 1999, long-range planning halted. As a result, the Public Service Commission considers energy projects, like power plants or transmission lines, on a first-come, first-served basis. The agency does not systematically compare these proposals brought to them by utilities to alternative means of meeting our state's energy needs, such as renewable energy or energy efficiency measures. Additionally, facility proposals brought before the PSC are driven primarily by private entities whose primary mandate is not necessarily to serve the public interest. Because of the current process, Maryland could easily get stuck with energy sources that do not provide the best combination of cost, reliability, and environmental protection. To avoid a possible train wreck, Maryland must make smart energy decisions moving forward, beginning with the Public Service Commission overseeing the crafting of a comprehensive energy plan.
HB 522 would put Maryland on the path towards a clean, reliable and affordable energy future by ensuring that the Public Service Commission has the information it needs to make smart decisions about where Maryland gets its energy. By creating and considering a comprehensive energy plan, energy efficiency and renewable energy can be taken into account alongside fossil fuel power plants or new transmission lines. The legislation would make sure that the PSC considers all alternatives for generating, importing, or reducing the need for energy, helping Maryland diversify its energy portfolio and maintain affordable prices for ratepayers.
Finally, by taking a more comprehensive view of our energy needs and options, we can better work towards our state's goals for cutting greenhouse gas emissions. Currently, our state does not have a long-term plan in place to meet the goals laid out in environmental legislation, such as the Greenhouse Gas Reduction Act of 2009, that must be considered by the Public Service Commission. With HB 522, the PSC would be required to consider the comprehensive energy plan when judging facility proposals and review each proposal's merit according to cost, reliability, and the state's environmental laws.
Making a plan for Maryland's energy future that provides detailed information to decision-makers is the smart, logical thing to do for the reliability and affordability of our electricity supply as well as our environment, and HB 522 would require that.
