Maryland Regulators Get Their Way On BG&E Smart Grid Plan

In contrast, the commission said, "with a tracker, it would be nearly impossible to unring the bell. Money would flow from customers to the company before significant benefits, and BG&E's well-intentioned review proposal would put us to the impracticable challenge...of monitoring this...

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Bibliographic Details
Published inThe Energy Daily no. 156
Main Author LOBSENZ, GEORGE
Format Trade Publication Article
LanguageEnglish
Published Englewood IHS Markit Ltd 17.08.2010
Subjects
Cash flow
Consumer education
Cost control
Cost recovery
Customers
Electric rates
Smart grid technology
Smart meters
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ISSN0364-5274

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Summary:In contrast, the commission said, "with a tracker, it would be nearly impossible to unring the bell. Money would flow from customers to the company before significant benefits, and BG&E's well-intentioned review proposal would put us to the impracticable challenge...of monitoring this project in real time and making on-the-fly decisions (that, in BG&E's view, would be binding for cost recovery purposes) about how and on what terms to proceed. If things were to go wrong, we would find ourselves in a position of having to consider ordering BG&E to issue credits to customers." "BG&E contends that cost recovery without a tracker will delay the company's cash flow and adversely affect BG&E's credit metrics, but there is no concrete evidence in the record to back up these claims," the commission said. "We recognize that 'prudent' does not mean 'clairvoyant' or 'perfect,' and that a proper prudency review should not subject the company to an unfair, post hoc nickeling-and-diming," the commission said. "But we also will not deem any costs as 'prudent' in advance--the appropriate time to determine prudence is when recovery of the regulatory asset is sought."
ISSN:0364-5274