State senator: Constellation is looking out for CEO pay, not citizens
4:17 PM EDT, June 15, 2009
Your editorial attacking Gov O'Malley for insisting that the
Constellation/EDF merger benefit ratepayers, shareholders and the environment
rather than just a handful of Constellation executives ("Separate
Politics, Power" June 15) is based on several significant factual
mistakes:
- Constellation got itself into
its latest self-inflicted mess in December by filing a frivolous legal
challenge to the Public Service Commission's responsibility to review
whether or not the transaction is in the public interest. Had they
complied with the law then, the deal could have been done by now.
- Realizing its mistake, and
hoping to avoid a lengthy proceeding with an uncertain outcome,
Constellation approached the State about settlement talks. The State
agreed to talks, simultaneously advocating that the PSC obey the law.
- On June 2, the State offered
a list of steps CEG could take to protect the public's interest in this
deal, including reduced rates for consumers, partial reregulation,
protection of BGE from further mismanagement by Constellation, investment
in clean energy, and dropping the whopping payout of $87 million to CEO
Mayo Shattuck.
- Constellation was free to
accept, reject or counter. Governor O'Malley's proposal was entirely
appropriate. Standing up for the interests of the people of Maryland is his
job. Constellation never even responded to the State's offer.
- Finally, the PSC law must
approve any settlement, and can only do so only after public hearings and
concluding it is in the public interest. Why won't Constellation promptly
negotiate a deal which is good for its ratepayers, its shareholders, and
our environment? Is it only concerned about protecting a $87 million
payday for its CEO?
If that's true, what a shame for Maryland.
Sen. Jim Rosapepe
The writer is a Democrat representing Anne Arundel and Prince George's counties |
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