Noting the potential for confusion that may result from recently passed electricity legislation in the state, the Maryland Public Service Commission (PSC) last week decided to terminate pending proceedings related to the proposed merger between Constellation Energy and FPL Group, but gave the parties the opportunity to refile a comprehensive application that takes into account the legislation (SB1).

The FPL-Constellation merger application initially was filed in January. In June, the Maryland General Assembly passed SB1, which, among other things, established standards of review to be applied in the FPL-Constellation merger case (9054).

PSC staff subsequently filed a motion to suspend the procedural schedule in the case. Staff contended that the testimony previously filed may be incomplete and partially inaccurate due to the change in legal standard and topics for consideration engendered by SB1. On June 29, Constellation filed an amended petition.

In its July 10 order, the PSC said that it agrees that the changes instituted by SB1 “raise significant issues regarding the efficacy of the filings to date and whether the record is actually complete. While the commission appreciates Constellation’s attempt to respond to Senate Bill 1, the commission is concerned that simply supplementing the testimony may lead to confusion and an unwieldy record.”

The record in the proceeding to date consists of testimony and exhibits from multiple parties, with the addition of the most recent filing from Constellation, under two different statutory standards, the commission noted.

Enactment of the new standards contained in SB1 “means that all parties would now be compelled to file further testimony pursuant to the new standards, with an accompanying potential for confusion and misunderstandings as the various filings are reconciled. Accordingly, the commission is concerned that the case will not proceed in a coherent manner if the entire record is not consistent with the current statutory standards.”

The PSC therefore determined that Constellation’s petition for approval to merge with FPL and the recently filed amended petition “shall be dismissed without prejudice to refile a comprehensive application which addresses all the standards and conditions” enacted in SB1.

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