BGE gets smart grid approval
State energy regulators said late Friday that Baltimore Gas and Electric Co. can move forward with its $835 million plans to upgrade to a so-called "smart grid."
The Maryland Public Service Commission will not, however, allow the utility to pay for the project as it's built, through a surcharge on customers' bills. BGE had said it would not go forward with the project without that ability. Spokesman Rob Gould said the utility is reviewing the order and will respond soon.
Assuming BGE officials accept the PSC's counter-proposal, the order could move forward a project that will see to the installation of "smart" electric meters that encourage customers to use less power.
The order could also help preserve a $200 million stimulus grant BGE was awarded for the project. That grant and the project were thrown into doubt in June when the PSC rejected the utility's smart grid proposal. Regulators said the plans weighed too much of the cost on electricity ratepayers.
But in the Friday order, they were pleased with changes BGE made.
"The company obviously attempted, in good faith, to address the issues that precluded us from approving the Initiative before," the PSC wrote. "Although BGE’s revisions do not entirely cure the concerns that caused us to deny approval the first time, we have heard and believe we have addressed BGE’s countervailing concerns."
The regulators decided that BGE should pay for the smart grid improvements through the normal distribution charges it places on customers, because the project represents "a large, but classic, investment in BGE’s distribution infrastructure."
U.S. Department of Energy officials said in a PSC filing earlier this month they would decide whether to reallocate BGE's grant by Aug. 16.
Filed under: legal by Wolf