By Cheryl Seal

Ever since Bob Ehrlich, aided by his pals in the White House (who provided all sorts of nifty tips), managed to hijack the governorship of Maryland, the state has been turned into one big "test laboratory" for the Bush long-term agenda. Everything from the privatization of schools to a government run by corporate reps, instead of reps of the people, has been pushed here. For example, under Ehrlich, former insurance broker Alfred W. Redmer is commissioner for the state's insurance administration, while the Public Service Commission (which is supposed to oversee utilities) is stacked with industry people. Ehrlich has also, like Bush, fired as many progressive Democrats from state government as he could get away with (a case still under investigation).

So it comes as no surprise that the latest plan foisted by Ehrlich onto the people of Maryland appears to come straight from a White House template.

In the past few years, the favorite strategy of the Bush administration for screwing citizens is to create "new, improved!" programs that are so complicated and so top heavy that while a small percentage of citizens may be able to benefit modestly, a larger percentage actually LOSE money or benefits. The big motivation behind these schemes is to make money for corporations and/or spend as little as possible on citizens. Such is the case with the current Bush VA benefits scheme and the Bush Medicare Prescription Benefit plan. Bear with me - these are relevant to the Maryland energy cost hike situation, as you will see.

Under the VA scheme, VA personnel are instructed NOT to tell Vets what benefits are available unless they specifically ask about a certain program. In addition, while the VA hired more intake workers (people helping to fill out application forms), no new caseworker positions have been created since about 2000. As a result, even with fewer vets aware of possible benefits, there is a waiting period for vets who do apply that may be as long as 2 years. Meanwhile, the DAV estimates that at least 33% of vets are wrongfully denied benefits.

Of course, we all know what a train wreck the Medicare Prescription Benefit Plan is. An estimated 6 million seniors still have yet to sign up. And, if they fail to do so by the deadline (currently May 15) they’re screwed.

So now Ehrlich, a personal friend of Dubya's and a card-carrying member of the "Bush Club" (rightwing politicians who place corporate interests above the interests of their constituents) is trying the same scam out on the state's utility customers.

So here's the background: A proposed merger between Constellation Energy, the parent company of Baltimore Gas and Electric (BGE) and a Florida utility (hello, Jeb!) would have caused Maryland residents to pay a whopping 72% more on their electricity bills almost overnight. Left up to the state's Public Service Commission (stuffed as I mentioned with industry-friendly Ehrlich appointees), the deal would have been rubberstamped. But the public outcry and the outrage of Maryland's largely Democratic state house and senate brought the proposed “one-shot” rate hike to a screeching halt.

The State Assembly came very near to working out a relatively consumer-friendly deal. However, the assembly’s session ended before the deal could be finalized. So in rides Ehrlich, supposedly “to the rescue” with an alternative plan.
This plan, rather than being truly consumer friendly, is strongly reminiscent of the Bush Medicare scheme. It is so convoluted and confusing that even the reporters present when it was unveiled on April 20 had a hard time summarizing it for viewers without stumbling. Little wonder. Ehrlich's "explanation" (which was long, rambling and full of finger-pointing at everyone but himself and his Public Service Commission) made it as clear as mud.

Ehrlich pulled the stops out to make the "rate plan deal" announcement into a free campaign publicity stunt. Wifey was in tow during the initial announcement, along with his token black guy, Lt. Governor Michael Steele. Later, he went onto FOX45 with his four kids in tow to discuss the deal with anchor Jennifer Gilbert. Ehrlich has almost as cozy a relationship with the local FOX folk (he calls Gilbert "Jen") as Cheney does with the national FOX talking heads. Ehrlich also, like other Bush Clubbers, haunts the rightwing talk shows in the state – shows that are patronized by a tiny percentage of Marylanders yet are kept artificially propped up with corporate bucks to provide Bush Clubbers with “bull horns” whenever they need it.

Anyway, I digress. The rate hike will be implemented in phases...well, sorta. The first increase will be 19.4%, starting July 1. Rates would be hiked up again by about 25% on June 1, 2007 (that's 25% above the original rate + the previous 19.4% hike) and move to "market rates" on Jan. 1, 2008. So far, no one, including Ehrlich, has chosen to elaborate on what "market rates" might signify. It sure sounds like a potential blank check to me, knowing the track record of the energy industry.

Oh, but it gets even more complicated. Customers could sign up for an "opt in" program, in which a monthly fee - $15.00 - would be levied in exchange for (and to offset) deferred payments. According to a 4/21 followup on WBAL, that while the opt in scheme (also known as the relief plan) would cost customers with an average bill of $100 about $472.00 between now and December 7, 2008, it will cost those unfortunate folk with $100 monthly bills who don’t sign up a whopping $1,248 in the same time. And, the opt in people will have to continue to keep paying the $15/month fee until 2009 – even if “market rates” turn out to be lower than what people were paying as of December 2008. Not TOO convoluted, eh?

As the "Baltimore Sun" recently reported, under the “relief plan,” customers would have to explicitly opt into the program,” a provision that “would exclude many of the most vulnerable customers, including the elderly, the poor and non-English speakers, who would be less likely to learn about the plan. Creating an opt-in program would likely be less expensive for BGE, though, because not all customers would participate."

Hancock scoffs at Ehrlich/BGE’s supposed outreach plan. "Ehrlich and BGE are promising a big education campaign to get people to sign up, but there is a strict deadline, and many households [largely poor black families in Baltimore City] will inevitably be left out."

It isn’t a stretch to conclude that Ehrlich and his industry pals are intentionally targeting Baltimore, which thus also targets Baltimore Mayor Martin O'Malley, who is challenging Ehrlich for the governor's seat this year. As the Sun pointed out, the Ehrlich/BGE will likely hurt the poorest, most vulnerable consumers – a high percentage of whom live in Baltimore City. BGE has already slapped thousands of budget billing customers with a huge “anticipatory” rate increase. One woman reported that her bill jumped from $75.00 to $300.00 – and this before any merger or rate hike had been officially approved yet!

Even small increases can be a make-or-break for many the urban poor. "A lot of our constituents, if they pay $10 extra it's not just lunch money," council member James B. observed to the Sun. "Ten dollars extra may be the difference between them being able to afford getting back and forth to work."

And to give you an idea about just what Baltimore City consumers are getting for their BGE dollars, here’s a recent incident: At the corner of Franklin and Cathedral Streets, by the Central Enoch Pratt Library, a “Walk light” has been out for at least SIX MONTHS. This is an area that is heavily trafficked by pedestrians, including many handicapped persons. The City has been unable to fix the problem because BGE is not providing enough voltage to the intersection, and despite repeated requests by the city, is STILL failing to correct the problem. And that’s just one intersection.

In any case, as the Sun’s columnist Jay Hancock pointed out on April 21, the Ehrlich plan "merely delays the rate shock. It doesn't guarantee the hundreds of millions in give-backs that BGE parent Constellation Energy was offering two weeks ago (although Constellation still promises the money if it is allowed to merge with FPL Group)"

In other words, as with most “Bush Club” plans, corporations hold all the cards, all the leverage. Once the merger goes through, the citizens of Maryland will have NO leverage and BGE/Constellation will be free to laugh all the way to the bank, without any recourse by the people. "The Constellation rebates do not have the force of law,” says Hancock. “In any case, the give-back would depend on the consummation of the FPL merger, but now we have only Constellation's promise. And worse than that - the give-back is dribbled out over a decade instead of being substantially doled out to ratepayers in the first year or two. Because of the time value of money (a dollar next year is worth much more than a dollar in 2012), that also diminishes the package's value."

So the Ehrlich scheme clearly combines the templates of the VA plan (don’t do anything unless they specifically ask) and the Medicare Benefit plan (1. make it so complicated they won’t know what to do and thus will do nothing and lose and 2. Appear to be concerned for citizens by conducting a superficial educational campaign – just two nights ago the nightly news had a bit on the Medicare prescription plan’s traveling educational program).

Meanwhile, O'Malley and Baltimore City council members are demanding that the charges already levied against budget billing customers be returned. O'Malley also wants a moratorium be placed on the BGE-Constellation merger, a cap placed on rate increases, and the industry-friendly members of the Public Service Commission replaced immediately.

But meanwhile, at the governor's manison, it's just biz as usual for gold star members of the Bush Club.

Jay Hancock's column: "Take Plan, But Shop around for Electricity"
www.baltimoresun.com/news/local/politics/bal-bz.hancock21apr21,0,1256999.column

Rate Deal Reached:
www.baltimoresun.com/news/local/politics/bal-te.md.rates21apr21,0,3712871.story

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