When the Maryland Assembly adjourned on April 10, 2006, they left without coming to a resolution of the BGE proposed rate hike. BGE is empowered to raise its prices in Maryland's deregulated energy market as price-caps unfreeze this summer, and BGE claims it simply must pay for higher energy costs.

Negotiations between BGE and Governor Erhlich approached a proposal to limit the 2006 price hike to 15 percent, reported The Baltimore Sun on April 18. The rest would have been spread out between 2006 and 2009. Now with Erhlich refusing to call a special session of the state legislature, only he can placate the rapacious energy gods of BGE and Constellation Energy. The question is, will he present them with some sort of official offering?

People should prepare to conserve energy, either way. The Governor may not have the leverage to negotiate a better deal for Maryland now. Without the threat of a legislature in session to impose rate freezes again, investigate the merger of Constellation with Florida Power and Light, or even re-regulate the industry, BGE and Constellation Energy feel far less pressure to negotiate.

Governor Erhlich's decision not to call a special session represents a reversal, for in the General Assembly's closing days Erhlich predicted he would call it. In one television interview, Erhlich stated that while he viewed a special session as a "failure," he was ready to call lawmakers back to complete the state's business. What could be more germane to the state's business than energy prices affecting all?

A whopping rise in energy prices will affect Maryland residents and businesses, especially the middle class and those below, and especially retail businesses. This spike likely will nudge retail prices up while simultaneously shrinking people's disposable income. As a self-defined pro-business Republican, Erhlich should be concerned about this coming cash crunch.

Governor Erhlich has changed his mind about a special session probably to prevent the legislature from overriding his veto of two bills: one that would fire the Maryland Public Service Commission (PSC), and one that would scrutinize Constellation's merger with Florida Power and Light and allow the Maryland legislature to reject the merger. Erhlich vetoed both bills.

However, both were expected to override his veto and become law because of the legislature's overwhelming support for them. These two bills would be the biggest consequence of Erhlich calling a special session, with longer-lasting consequences than a rate hike. So it makes sense to speculate that Erhlich is keeping the legislature adjourned to protect the merger and the PSC. Four of the five members of the PSC were appointed by Erhlich.

The death of legislation to scrutinize the merger of Constellation Energy with Florida Power and Light, report findings, and provide the General Assembly with veto power over this merger is especially egregious. Once Constellation mergers with Florida Power & Light, this interstate company will be more difficult for Maryland to regulate. During the 2000-2001 energy crisis in California, the federal government refused to regulate prices smashing California's economy. Since that crisis, the state of California has sued the Federal Energy Regulatory Commission (FERC) for its light-handed treatment of companies that were overcharging California ratepayers. California has won through legal action and court settlements $3 billion from these energy companies, according to the California Attorney General's Office.

Erhlich also vetoed a bill to fire the members of the Maryland Public Service Commission (PSC) who approved the rate hike. Four out of five of these members were appointed by Erhlich. Commissioner Harold D. Williams appointed by Erhlich spent 20 years working at BGE, according to the PSC Web site. While the PSC is supposed to be an impartial agency dedicated to the public good, email records obtained by The Baltimore Sun showed that PSC Chairman Kenneth Schisler regularly consulted with energy industry lobbyist Carville Collins on issues such as PSC hiring, and on how the PSC and BGE could use PR to finesse the rate hike.

Looking back on the last legislative session, it is shameful that the General Assembly did not override Erhlich's vetoes of these two bills. They did override his vetoes for other bills. Of course, had many legislators assumed there would not be a special session, they have have brought these bills up for a vote. Before April 10, Erhlich's statements in favor of a special session may have been disingenuous, a political card he played well in a game that leaves Maryland ratepayers with less chips.

In the short term, Maryland voters will soon have a chance to hold incumbant politicians accountable in the Novermber 2006 elections. In the Maryland Governor's race, Democratic Doug Duncan is the only candidate of the two major parties to call fro reregulating the electricity industry and reimposing rate caps. In the long term, Maryland residents will have to wonder whether today's system of elections funded by campaign contributions and fought solely by a two-party system is really paying off.