Smart Energy Solutions In the News

ANNAPOLIS, Md. (AP) - A Senate committee voted Tuesday to direct the money Maryland receives as part of the Regional Greenhouse Gas Initiative to electricity rate relief, instead of a fund to promote energy efficiency.

Sen. E.J. Pipkin, R-Cecil, proposed the change during a Senate Finance Committee vote on several measures relating to energy conservation. Pipkin said his amendment was the only way to bring rate relief to consumers who are facing rising energy bills.

'We've not given them any rate relief,' Pipkin said. 'We refused to change the regulatory policy. This is the most targeted tool that we have.'

Pipkin proposed the amendment to a bill that would repeal the Maryland Renewable Energy Fund and establish the Maryland Strategic Energy Investment Program in the Maryland Energy Administration.

Opponents to the amendment argued that the money would be better used by investing in energy efficiency programs that would save more money in the long run. Malcolm Woolf, director of the MEA, described the amendment as 'a missed opportunity to invest in Maryland's long-term future.'

'It's really a question of do we give short-term rate relief or do we invest in things that will in the long-term reduce everybody's bills,' Woolf said after the vote.

At issue is money the state will receive from utilities under RGGI, the greenhouse gas initiative that 10 states, including Maryland, have agreed to join. It's a regional plan, but each state must adopt its own laws and regulations.

Under RGGI, a regional carbon dioxide emissions cap would be put in place for large fossil fuel-fired power plants beginning in 2009. Allowances would be issued equal to the total cap and apportioned to the participating states. Utilities would have to buy enough allowances within three years to cover their emissions. Since the number of allowances is limited by the regional cap, overall emissions are expected to be reduced.

State estimates indicate the auctions could raise between $80 and $140 million a year in Maryland. The first RGGI auction is scheduled to be held in June 2008.

Either 7 percent or $10 million of the money raised in the auctions -- whichever is the higher figure -- will go to a fund to help low-income residents pay energy bills.

The rest, under Pipkin's amendment, would go to offset rising energy costs. Pipkin said Maryland already is working toward carbon reduction simply by being part of the agreement, and that the money should go to rate relief.

But opponents to the idea said the rate relief will only add up to several dollars a month per household, at the expense of pursuing long-term efficiency goals that could net big savings later.

Johanna Neumann of the Maryland Public Interest Research Group said the intent of the legislation is to lower electricity use in the state.

'If you take that money and you give it as refunds instead, you don't do that,' Neumann said. 'You do not lower electricity usage.'

Although the committee passed the bill, it also laid the measure over to provide for more time to work on it.

The committee also approved a bill proposed by Gov. Martin O'Malley's administration to set a state goal of achieving a 15 percent reduction in per capita electricity consumption by 2015. The measure requires electric companies to provide customers with plans to increase energy efficiency.