PSC agrees to look at link between BGE and BGE Home

Listen to this article

The Public Service Commission has agreed to investigate the practices of Baltimore Gas & Electric Co. and BGE Home to see if the companies are sharing business resources in violation of state law.

On Tuesday, the PSC issued an order calling for an investigation into the relationship between BGE Home and BGE. BGE Home sells and services heating and air conditioning equipment, water heaters, plumbing and electrical systems, windows, doors and attic insulation. The company also services appliances and sells natural gas. BGE delivers natural gas and electricity to homes, businesses and other facilities in Baltimore and surrounding areas in Central Maryland. Both are subsidiaries of Constellation Energy Group.

The order comes from a petition filed in October 2009 by the Maryland Alliance for Fair Competition, a trade organization made up of heating, air conditioning, plumbing, electric and appliance contractors.

The organization wants the PSC to make sure that BGE’s customers are not subsidizing the activities of BGE Home through the sharing of resources such as customer accounting, human resources, shared property and billing and collection services.

BGE responded to the original complaint in January and said that its customers are not subsidizing unregulated activities of its affiliate and said it is in full compliance. The company had also asked the commission to dismiss the petition.

Aaron Koos, spokesman for BGE Home, said the company had received the order and was in the process of studying it.

“This has been an ongoing issue, but we are confident that we have complied with all of the applicable regulations,” he said.

The PSC said it has already looked into multiple complaints over the use of a portion of a corporate name by an affiliate. The PSC cites Washington Gas Energy Services, an affiliate of Washington Gas Light Co., and Pepco Energy Services, an affiliate of Potomac Electric Power Co., as examples.

In agreeing to undertake the investigation, the PSC said it had been “several years” since a review of the affiliate practices had been carried out. The commission said it would decide what, if any,  action to take after the report was received.