A Bad Energy Bill in Annapolis

Here is my testimony against SB 795, a very bad energy bill being considered right now in Annapolis.


Testimony submitted to: Senate Finance Committee
Submitted by: Gary Skulnik
President
Clean Currents
155 Gibbs Street, Suite 425
Rockville, MD 20850
Bill: SB 795
Position: OPPOSE (UNFAVORABLE)

Here in Maryland, we have renewed activity in the competitive electricity market. Commercial customers are locking in contracts for fixed rate power, for one to five years at rates not seen in years. This is saving businesses big time at a time when they most need it. Residents are finally getting into the act as well. Thanks to C Green and other programs, homeowners can sign up for alternative supplies of energy at below market rates, and get green power at the same time. This robust electricity market has spurred the growth of Clean Currents, a Rockville based sustainably operated clean energy company. At a time when many companies are talking layoffs and downsizing, Clean Currents is actually hiring. It has grown to a staff of ten, from two just a year ago. The company plans on adding more people as the year progresses. These are exactly the kind of green jobs that's on everybody's lips these days from the President on down.

Thanks to initiatives from Governor O'Malley, there is once again a vibrant market for energy efficiency in Maryland. Homeowners and businesses are now or will be very soon able to take advantage of fantastic new rebates, special discounts and other incentives that help them lower their energy use, and thus cut their energy bill. We have a real demand side management program in place after years of neglect, thanks to Empower Maryland.

Maryland's solar energy industry is finally ready for rapid growth. The state could very well put in over 6 megawatts of solar energy in 2009, far surpassing anything that's happened in the past. This solar revolution is part and parcel of the competitive electricity market we are in, with the framework of the Renewable Portfolio Standard on top.

Some people would look at this and say we have an unmitigated success here in Maryland. We have new green jobs, green businesses, renewable energy, energy efficiency, and opportunities to lower electric bills.

Unfortunately, some look at this and call it a "total disaster."

There is a real feeling in Annapolis, it seems, to do something about energy prices, even though much of it is out of our control.

SB 795 is the wrong bill for the environment, for clean energy, and ultimately for consumers.

Wrong for the Environment

In the current deregulated market, consumers can choose green energy from different energy suppliers. Clean Currents has signed up more than 1,500 customers (commercial and residential) to green power since 2006. Passing SB 795 will take away the option of choosing green power for consumers.

The utilities will be able to build coal-fired power plants and force the ratepayers to fund them. This is exactly what happened in Virginia recently. Dominion power is building a new coal fired power plant and the ratepayers of Virginia are footing the bill with an extra charge on their electricity bill.
Utilities are historically reluctant to participate in innovate programs to fund renewable energy development. For example, the three companies that have purchased the most Solar Renewable Energy Credits are Constellation, Washington Gas Energy Services, and Pepco Energy Services, all deregulated energy suppliers, not utilities. These purchase have resulted in major solar projects in Maryland, including the McCormick installation (Baltimore) and the Kelly Electric installation (Prince George's County).

SB 795 will create more greenhouse gas emissions in Maryland.

SB 795 will encourage the building of more coal-fired power plants. This is exactly the opposite of what Maryland leaders are committing to doing (reducing greenhouse gas emissions).

Wrong for the Economy

SB 795 will cost jobs and hurt the burgeoning clean energy industry in Maryland.
Competitive Energy Suppliers will layoff staff. Small green start-ups like Clean Currents will scale back and possibly close. The bill will stifle innovation in the energy sector just at a time when it's needed most.

SB 795 Just Doesn't Work

Commercial customers in Maryland are actively shopping for electricity. Many of them are getting deals that are much better than Standard Offer Service. There is no problem here to "fix."

Commercial customers of Clean Currents have purchased green power at rates below utility standard offer rates. They have saved money and achieved significant marketing/public relations benefits for their companies. This could not happen if SB 795 passes.

Clean Currents worked with residents of Catonsville to do a buying group for clean energy. More than 300 residents participated, getting stable electric rates and creating positive community feelings. This could not happen if SB 795 passes.

SB 795 has too many problems to be easily fixed. We respectfully ask you to OPPOSE SB 795.