Md. governor vetoes utility relief plan

ANNAPOLIS, Md. – Gov. Robert Ehrlich vetoed an electricity-rate relief plan designed to spare customers the brunt of a 72 percent increase next month.

Ehrlich had complained that the plan did not let Baltimore Gas and Electric Co. customers choose whether to participate in a payment plan that included a monthly fee, and he asked lawmakers for a “more consumer friendly” option.

Electricity rates have dominated political debate here since BGE’s residential customers realized early this year that rates would soar when a six-year freeze ends July 1. The freeze was part of the deregulation of Maryland’s power market.

The bill vetoed on Thursday would limit the rate increase to 15 percent for the next 11 months. Rates could rise to market levels in 2008, and customers would have to pay back the deferred amount of the increase over the next decade.

The bill passed the General Assembly last week with more than enough votes to override the veto.

AP