Mid-Atlantic Power Supply Association



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Mid-Atlantic Power Supply Association

Office of the Executive Director Phone: (201) 818-0936

6 East Main Street, Suite 6E, Ramsey, NJ 07446 Fax: (201) 818-4347

January 30, 1998

The Maryland Public Service Commission

Daniel P. Gahagan

The Executive Secretaries Office

6 St. Paul Street, 16th Floor

Baltimore, MD 21202-6806
Re: IN THE MATTER OF THE COMMISSION’S ) CASE NO. 8738

INQUIRY INTO THE PROVISION AND )

REGULATION OF ELECTRIC SERVICE )
Dear Mr. Gahagan:
Please find enclosed an original and 14 copies of Mid-Atlantic Power Supply Association’s (“MAPSA”) Motion for Rehearing and to Vacate Order 73901.
Sinerely yours,

Steven M. Kirk, Esq.

Mid-Atlantic Power Supply Association

6 East Main Street, Suite 6E

Ramsey, NJ 07446
SMK:db

BEFORE THE MARYLAND PUBLIC SERVICE COMMISSION
IN THE MATTER OF THE )

COMMISSION’S INQUIRY INTO THE ) Case No. 8736

PROVISION AND REGULATION OF )

ELECTRIC SERVICE )


MOTION TO STRIKE

OR IN THE ALTERNATIVE
MOTION FOR REHEARING AND TO VACATE ORDER 73901 BY THE MID-ATLANTIC POWER SUPPLIERS ASSOCIATION OF COMMISSION

INTRODUCTION
The Mid-Atlantic Power Association (“MAPSA”) being a party to the above captioned matter, files this motion for rehearing of the Public Service Commission (“the Commission”) Order No. 73901, which was issued December 31, 1997, pursuant to the Annotated Code of Maryland 78 § 86(a); MD Regs. Code Title 20.07.02.08.
The Commission commenced their restructuring proceedings more than three years ago with their September 19, 1994 Order No. 71459 which directed Staff to prepare a commentary and discussion paper on relevant regulatory and competitive issues. This discussion paper was released on November 1, 1994. From that point on the Commission issued a Staff report, solicited and received comments and conducted a series of hearings.
Following a week of evidentiary hearings, the three year investigation culminated with the Commission’s December 3, 1997 issuance of Order No. 73834. Based on the informational

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record, Order 73834 set out a time schedule for the implementation of retail customer choice for Maryland electric users. The schedule set forth in Order No. 73834 for the employment of load phase-in percentages subject to retail competition is as follows:
Beginning April 1, 1999 33 1/3%

Beginning April 1, 2000 66 2/3%

Beginning April 1, 2001 100%
On December 31, 1997, prior to the end of the 30-day comment period, the Commission issued another Order, No. 73901, which is the subject of this instant motion. This five-page order set a new phase-in schedule which delays the phase-in implementation dates for retail competition by 15 months. In addition to delaying the phase-in, the Commission suspended all dates pertaining to utility filings, for initiation and completion of adjudicatory and round table proceedings. Essentially in a 28-day span the Commission, overruled an Order which was the culmination of its three-year investigation into retail electric competition. The Commission issued Order 73901 based on rehearing participation by only the Maryland People’s Counsel. No where in its five-page decision did the Commission provide an adequate legal argument or reasoning for its order.
REQUESTED ACTION
MAPSA asserts that the Commission improperly issued Order No. 73901 and requests that it be vacated. The Commission should then rehear those issues which require “further clarification, additional guidance or changes in policies,” December 31 Order slip. Op. At 4.

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ARGUMENT
THE COMMISSION IMPROPERLY ISSUED ORDER NO. 73901 ISSUED WITHOUT EVIDENTIARY SUPPORT IN THE RECORD OR LEGAL REASONING, IN CONTRAVENTION OF THE PARTIES’ RIGHTS OF DUE PROCESS AND FAILED TO COMPLY WITH THE ANNOTATED CODE OF MARYLAND, ART. 78 § 20, AND 86 AND MUST BE VACATED BY THE COMMISSION.
Md. Code Ann. art. 78 § 20© states in pertinent part:
§ 20. Proceedings en banc or in panels; delegated proceedings.
© Finality of orders; appeal from proposed order. -- Orders of a panel constituted

under subsection (a) shall be final.


The legislative evidentiary hearings in this matter were conducted en bano by the

Commission pursuant to subsection (a) of Art. 78 § 20.


Section 85(a) of article 78 of the Maryland Code Annotated provides:

(a) To be based on record, in writing and state grounds.-- Every decision and order of the commission in any contested proceeding shall be based upon a consideration of the record, shall be in writing and shall state the grounds for the Commission’s conclusions.


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The December 31, 1997 order does not satisfy the requirements of sections 20 and 85(a) of article 78 of the Maryland Code Annotated. Specifically , the Commission contradicted its own order in contravention of the evidentiary record without affording any party the right to present additional or rebuttal evidence in support of the December 3, 1997 Order, thus violating MAPSA’s and the other parties due process. Additionally, the Commission acted without legal authority by not citing in its December 31, 1997 Order any new evidentiary ground or fact which supports its conclusions. Therefore the December 31, 1997 was in directed contradiction of Md. Code Ann. art 78 section 85(a) which states: “Every decision and order of the Commission in any contested proceeding shall be based upon a consideration of the record, shall be in writing and shall state the grounds for the Commission’s conclusions.”
Essentially, the December 31, 1997 Order was a premature response to the Application for Reconsideration of the Maryland People’s Counsel and therefore deprives MAPSA’s due process. In addition to being premature and legally inappropriate MAPSA believes that the December 31, 1997 Order was an ill advised attempt to respond to concerns raised by only a small minority of parties without affording all other parties an opportunity to respond.
CONCLUSION
For the reasons stated above the December 31, 1997 Order is arbitrary and capricious, without legal authority and violative of MAPSA’s and other parties due process.
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However, the commission must view their decision in another light. Competition in the PJM is fast approaching. New Jersey and Pennsylvania have already set their phase-in schedules for retail competition. The Pennsylvania pilots have already begun, while New Jersey’s phase-in is scheduled to begin on October 1, 1998. The Commission’s delaying of retail competition has a far reaching impact on Maryland’s consumers and economy as a whole. The delay of competition will put Maryland’s industries at a competitive disadvantage as compared to other states in the region who have instituted retail electric competition. Therefore, the Commission needs to

re-examine its goals and bring retail competition to Maryland as expeditiously as technically possible.
Therefore, MAPSA requests that the December 31, 1997 Order be vacated and that the Commission should then rehear those issues which require “further clarification, additional guidance or changes in policies,”

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Respectfully submitted,
MID-ATLANTIC POWER SUPPLY ASSOCIATION

By: ___________________________________

Steven M. Kirk, Esq.

Mid-Atlantic Power Supply Association

6 East Main Street, Suite 6E

Ramsey, NJ 07446



201-818-6782

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