Baltimore

Duquesne Light Co. of Pittsburgh, a DQE subsidiary, filed withthe Pennsylvania Public Utility Commission (PUC) to transfer itsgeneration fleet to Baltimore-based Orion Power Holdings Inc., thewinning bidder in a previous generation auction. Orion will payDuquesne Light $1.705 billion for seven wholly owned fossil-firedgeneration stations, certain transmission facilities, and the rightand obligation to supply wholesale power to serve Duquesne’sprovider of last resort customers. As a result, Duquesne will endstranded cost collection in 2001 for most major customer rateclasses, reducing rates by more than 25%, assuming market pricesfor electricity remain at or below the commission-approved shoppingcredits.

Baltimore Gas and Electric (BGE), the electric and gas utilitysubsidiary of Constellation Energy Group, filed a comprehensiveelectric restructuring settlement last week with the MarylandPublic Service Commission (PSC) that will lead to system-wideelectric customer choice on July 1, 2000. It also would provide a6.5% base electric rate decrease (about $54 million a year) for upto six years for residential customers who continue to buy powerfrom BGE. Electric distribution rates for BGE’s commercial andindustrial customers will be frozen for four years, while rates forgeneration will depend upon the service options selected.

Baltimore Gas and Electric (BGE), the electric utilitysubsidiary of Constellation Energy Group, filed a comprehensiveelectric restructuring settlement yesterday with the MarylandPublic Service Commission (PSC) that will lead to system-widecustomer choice on July 1, 2000 and a 6.5% base rate decrease(about $54 million a year) for up to six years for residentialcustomers who continue to buy power from BGE.

Baltimore Gas & Electric expects to see a 65% reduction innitrogen oxide (NOx) emissions this summer as a result of a new gasreburn system installed on two of its coal-fired electricgeneration boilers and the Gas Research Institute is taking credit.

Retail gas marketers got some good and bad news from BaltimoreGas & Electric Co. yesterday. The bad news was transportationcustomers have to start paying the state’s 5% sales tax for thefirst time starting in May so alternative suppliers will have amuch tougher time beating the regulated gas sales price. Thecompliance division of the state Controller’s office informed BGEof the tax change in January.