Governor Set to Fill Empty PSC Seat

Gov. Jack Markell is ready to fill a seat on the Public Service Commission that has been empty for two years, according to reports. Chairwoman Arnetta McRae left the commission in 2011 to take another job, leaving the part-time five-member panel one commissioner short. Commissioner J. Dallas Winslow Jr. was named chairman a few months later, but the fifth commission seat has been empty since.

“The governor is in the process of setting up interviews and plans to nominate a replacement for consideration by the Senate in June,” Markell spokeswoman Kelly Bachman told The News Journal. “There were discussions regarding the possibility of shifting the PSC to a full-time commission; however, at this time we are moving forward on filling the vacancy while maintaining the part-time make-up of the PSC.”

More: The News Journal

MARYLAND

DC Suburb Wants Exelon To Promise Improvement

A Montgomery County councilman introduced a resolution asking state regulators to require Exelon to improve reliability as a requirement for its takeover of Pepco. Councilman Roger Berliner’s resolution urges the state Public Service Commission to require Exelon to make a “firm commitment” to deliver top quartile performance as a part of its approval of the proposed takeover. Pepco has ranked poorly in performance metrics.

Exelon last month offered to purchase Pepco’s parent company, PHI Holdings, for $6.8 billion. Exelon has promised $100 million in rate credits and other assistance to customers as part of the terms of the purchase.

The commission is currently reviewing a Pepco request for a $43 million rate increase, money the utility has said it needs for infrastructure improvements.

More: BethesdaNow

NEW JERSEY

PSEG Reaches $1.2 Billion Settlement on Energy Strong

Public Service Electric & Gas and the state Board of Public Utilities reached a settlement last week on the utility company’s plan to harden its infrastructure to better withstand storm damage. The settlement sets the cost for the system-wide project at $1.2 billion over three years, far less than the original price tag of $3.9 billion. The settlement allows PSEG to recover $1 billion of the costs from customers.

The plan, dubbed “Energy Strong,” was proposed in the wake of the damage done by Superstorm Sandy, which left millions of customers without power. The settlement means cutting the amount of improvements. PSEG Chief Executive Officer Ralph Izzo said he was disappointed that the program was scaled back but glad work will commence. “Clearly, we are not able to make every improvement we planned, but this settlement will allow us to begin to make meaningful upgrades, including upgrading substations that were flooded in Superstorm Sandy and Hurricane Irene,” he said.

Consumer advocates were more optimistic about the settlement. “This has gone from a massive, undefined and frankly unfair program in terms of method of cost recovery, to a now well-defined, targeted work that benefits customers,” said Rate Counsel Director Stefanie Brand.

More: The Star-Ledger

OHIO

Senate Passes 2-Year Pause in Green Standards

The state Senate last week passed a two-year freeze in the state’s “green” energy standards and called for studies on their effectiveness. The green standards, mandating renewable energy and energy-efficiency programs, will go back into effect in 2017 without further legislative action.

The original version of SB 310 called for a permanent freeze in the standards, but Gov. John Kasich’s office pushed for the two-year “pause” and further study. Environmentalists, consumer advocates and some business groups have criticized the state’s green standards as too pro-utility. Supporters of the standards freeze, including FirstEnergy, argue that mandating further standards would lead to higher energy bills.

More: The Columbus Dispatch

PENNSYLVANIA

Bill to Cap Rate Hikes Stalls in Pa. House

A House-sponsored measure that would cap variable electric rate hikes at 30% – introduced in the wake of the skyrocketing rates during this past winter – made it out of committee but didn’t make it to the floor for a vote before the House recessed.

Rep. Bob Godshall (R-Montgomery) introduced HB 2104 and gathered bipartisan support for the bill. But Godshall said a “full-scale attack” on the bill was launched by electricity suppliers. Some consumers who had signed up for variable rate plans saw bills double or triple this winter.

Electricity suppliers oppose the 30% cap. “HB 2104 in its current form would impose rate caps and price controls contrary to the original intent of electricity deregulation,” said Richard Hudson of the Retail Energy Supply Association. The House may reconsider the bill when it reconvenes in June.

More: The Morning Call

VIRGINIA

Dominion Virginia Power Seeks Rate Increase

Dominion Virginia Power is seeking a 6% rate increase to cover the unexpected spikes in winter fuel costs and to fund transmission line improvements. The request, filed with the State Corporation Commission last week, would raise a typical residential monthly bill from $107.99 to $114.36 if approved. About $4.46 of that is for fuel costs; the rest is for transmission work.

More: The Daily Press

WEST VIRGINIA

FirstEnergy Files For Rate Increase

FirstEnergy subsidiaries Mon Power and Potomac Edison filed a joint rate increase request for $96 million with the state Public Service Commission. Mon Power and Potomac Edison serve about 385,000 and 135,000 customers, respectively. If approved, it would mean an increase of about $14 a month to a typical customer’s bill. The last base rate increase approved by the commission was five years ago.

More: West Virginia MetroNews