Next year in Annapolis, Exelon Corp., owner of three electric utilities in Maryland, plans to push for legislative approval to build and operate a power plant in the state, company officials say. That would be a dramatic reversal of a 26-year-old utility deregulation policy that, in part, forced utilities that operate power lines and other transmission infrastructure to get out of the power generation business. But Exelon seems ready to seize on a unique political moment to overturn the law, with electric customers in Maryland and across the region feeling the pinch of rising prices—in part because of rising demand, but also because of rising power distribution costs charged by utilities.
Critics say that, unlike power generators operating in the state today, Exelon would be able to recover generation costs from ratepayers. But Exelon notes that it would need to go before Maryland regulators for approval to recoup its costs through power bills. “It’s a guaranteed way to increase electricity supply, which will help bring costs under control,” said Valencia McClure, a senior vice president of governmental, regulatory and external affairs at Exelon. “And then your regulators will have control over the dollars that are spent: The how, where, when, generation will be built.”
The move represents a significant shift in energy policy. Since deregulation in 1999, Maryland utilities have been barred from owning generation assets to prevent them from monopolizing both transmission and production. Exelon’s proposal would allow the company to build a power plant and recover costs through regulated rates, potentially providing more stable electricity supply and price control. However, opponents argue that it could reduce competition and lead to higher costs for consumers if regulators do not adequately oversee the process.
Exelon’s announcement comes amid rising electricity rates in Maryland, driven by increased demand and higher distribution costs. The company believes that building new generation capacity will help stabilize prices. If approved, the plant would be Exelon’s first new generation project in the state since deregulation. The proposal will likely face intense debate in the General Assembly, as lawmakers weigh the benefits of increased supply against the risks of reverting to a regulated market structure. More details are available in the full article here.
