Press Release
Tuesday, June 13, 2006
  
     
 

The Pols think energy comes from the polls. 

  
     
  As the old adage goes, “We have seen the enemy…and it is us.” This best describes the role of the politicians in the current electricity “crisis”.   
     
 

The crisis has not been caused by BGE’s deregulation, it has been caused by   increased regulation by politicians who interfered with normal market pricing, by setting a below market rate for a commodity, in order to win public favor over a short time period (which happened to coincide with just over one House term).

 
     
  Just what did the politicians think would happen after artificially freezing rates for seven years (as a form of blackmail)? That bill has now been delivered, without giving consumers the chance to adapt to naturally rising prices.  It should have come as no surprise to the politicians.  
     
  Of course, a scapegoat must be found for the politicians’ mistakes: thus, the move to fire the PSC members. However, if the politicians are going to fire the PSC members, they should do it for the right reason: excessive regulation. The PSC compounded the current crisis when it vetoed BG&E’s earlier attempt to hedge its energy costs. The PSC’s meddling in how BG&E operated its business, has cost rate-payers dearly.   
     
  Now, the pols are back at the drawing board and no energy consumer is safe. Having failed to repeal the laws of market economics, they will now attempt to “fix” the problem with more regulation. The unintended consequence of their political grandstanding may well be the future bankruptcy of a public utility.  
     
  John R. Austin