Energy Costs Offset

Washington, MD: (Mar-26-08) Constellation Energy brought a lawsuit against the state of Maryland, over the dismantling of its Calvert Cliffs nuclear plant. Sources close to the case stated that the parties had reached a settlement, in which the energy giant has agreed to give 1.1 million electricity customers in the Washington-Baltimore area a one-time $170 credit on their bills. Under the terms of the settlement agreement, the deal also eliminated an estimated $5.2 billion that electricity customers were scheduled to pay the company to dismantle its nuclear plant. The plant will be decommissioned starting in 2034, according to sources familiar with the negotiations.

The deal negotiated by the power company and the Martin O'Malley administration brings to rest recriminations over a 72% rate increase by Baltimore Gas and Electric, a Constellation owned utility. State sources indicate Maryland customers of BGE and Pepco have seen electric bills rise since the end of rate caps imposed when the state opened its electricity markets to competition in 1999. As a result of the settlement, BGE customers would still pay about $18 a year for the next two years toward the Calvert Cliffs decommissioning fund. Following that, the bill would be passed on to company shareholders. [THE WASHINGTON POST: POWER COMPANY AGREES TO CREDIT FOR MD CUSTOMERS]

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.

Please click here for a free evaluation of your claim

Published on Mar-28-08