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Maryland Electric Deregulation

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Maryland Electric Deregulation is the result of a Bill passed in 1999 by the Maryland General Assembly . This bill changed the entire face of the Maryland utility industry.

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54-689: In 1999, the Maryland General Assembly , under pressure from state manufacturers, enacted legislation that would cause the electric industry in Maryland to become deregulated . This bill, the Electric Customer Choice and Competition Act of 1999, was passed through the Maryland General Assembly with many Democratic and every Republican legislator's support. The bill was signed into law by Democratic Governor Parris Glendening who

108-401: A bill from a committee", which led to subsequent reforms. Reports of Committee After a committee has completed work on a bill, it reports the bill to the appropriate house during the "reports of committees" in the daily order of business. Reported bills are immediately given a second reading. The houses do not vote on a bill at the time it is reported; however, reported bills are placed on

162-550: A certain rate. This frozen rate was set between 3% and 7.5% lower than 1999 prices. Some companies, like BGE, had not increased their electricity rates since 1993. Therefore, in this period, customers would be paying less than for electricity than they had six years prior. Once that time was over, customers could shop for a different supplier and POLR rates would change from the capped rate to the market rate. The amount of time that rates would be frozen varied by company and by customer class (residential, commercial, industrial, etc.). Over

216-557: A committee to "kill" a bill, sometimes without even a public vote; in Colorado, the power was notably repealed in a citizen initiative constitutional amendment in 1988 driven by various reform groups. When a committee refuses to vote a bill out of committee, a discharge petition can be passed by the broader membership. The specifics vary from state to state; for example, in 2004, a report found that New York State "places more restrictions than any other state legislature on motions to discharge

270-567: A huge outcry. The events leading up to the 72% increase in customer's rates has been referred to by BGE executives, state commissioners, and state legislators as "the perfect storm ". In the years since rates were capped, fuel prices had risen dramatically. Natural gas prices had risen about 125%, regular gasoline prices had risen over 150%, and heating oil prices had risen almost 200%. Maryland region's fuel prices are tied greatly to natural gas prices. Subsequently, when Hurricane Katrina and Rita caused major natural gas pipelines to shut down for

324-506: A majority party, this is known as the majority being "rolled". When there are bills which most of the majority oppose, roll rates are a measure of the majority party's avoidance of voting on those bills. Committee review Committees review bill, often holding hearings to gather information and opinions, and can propose amendments to bill similar to legislative bodies throughout the world. Most bills cannot be enacted into law until it has been referred to, acted upon by, and returned from,

378-517: A period of 6 years, various customers' rates became unfrozen without incident. In 2007, however, that changed. In 2007, one of Maryland's largest groups, BGE's customers, was slated to move to market rates. Enormous rate increases in the wholesale electricity industry at that time meant that, while their rates would become comparable to other Maryland utilities, BGE customers would have their rates increased by 72%. This increase, greater than any other utility and coupled with election year politics, created

432-511: A short period, natural gas prices skyrocketed. Therefore, when BGE went to the market to procure power, prices for power were abnormally high. Other energy providers are currently available for residential use and are indexed by the Maryland Public Service Commission: Energy Supplier Information . Maryland General Assembly The Maryland General Assembly is the state legislature of

486-535: A standing committee for consideration and a public hearing. The president pro tempore appoints majority and minority whips and leaders. A bill is a proposal to change, repeal, or add to existing state law. A House Bill (HB) is one introduced in the House of Delegates (for example: HB 6); a Senate Bill (SB), in the Senate. Bills are designated by number, in the order of introduction in each house. For example, HB 16 refers to

540-417: A standing committee in each house. Reference to committee usually follows the first reading of the bill. Each committee is set up to consider bills relating to a particular subject. Standing committees are charged with the important responsibility of examining bills and recommending action to the Senate or House. Often on days when a legislature is not in session, the committees of each house meet and consider

594-561: A state ruled by the Palatine lord , Lord Baltimore. As ruler, Lord Baltimore owned directly all of the land granted in the charter, and possessed absolute authority over his domain. However, as elsewhere in British North America, British political institutions were re-created in the colonies, and the Maryland General Assembly fulfilled much the same function as the House of Commons . An act

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648-399: Is available to ensure that legislation and accompanying discussion proceed as orderly as possible without bias. Bill drafting and submission The lawmaking process begins with the introduction of a bill in either the House of Representatives or the Senate. Bills may be introduced in either house, sometimes with the exception of bills increasing or decreasing revenue, which must originate in

702-524: Is called the Nebraska Legislature , but its members are called state senators. The first bicameral American legislature was formed in 1619 as the Virginia House of Burgesses . The legislatures of the initial Thirteen Colonies usually consisted of an elected lower house and an appointed upper house , the latter of which also functioned as an advisory council to the colonial governor. After

756-488: Is done by committees. The legislature as a whole relies on its committees to report out only those bills deserving the consideration of the entire house. Through standing committees, each bill is addressed by a group of members who have special knowledge of its subject. Some members of the legislature have expert knowledge of particular subjects of legislation, and these members are usually placed on committees to take full advantage of this specialized knowledge. For this reason,

810-675: Is headquartered in Denver, Colorado and has a lobbying office in Washington, D.C. Additionally, privately funded organizations with ideological leanings have annual meetings attracting many legislators. These include the American Legislative Exchange Council (ALEC), a conservative organization, and the State Innovation Exchange (SIX), its progressive counterpart. As of 2017, 24 of 99 chambers have limits on

864-413: Is not considered by the full house, the bill is defeated. The house of origin, upon return of its amended bill, may take any one of several courses of action. It may concur in the amendment by the adoption of a motion to that effect; then the bill, having been passed by both houses in identical form, is ready for enrollment. Another possibility is that the house of origin may adopt a motion to non-concur in

918-639: Is submitted by the State Central Committee of the same political party as the legislator whose seat is to be filled. The current pattern for distribution of seats began with the legislative apportionment plan of 1972 and has been revised every ten years thereafter according to the results of the decennial U.S. Census . A Constitutional amendment, the plan created 47 legislative districts, many of which cross county boundaries to delineate districts relatively equal in population. Each legislative district elects one senator and three delegates. In most districts,

972-570: The American Revolution and the establishment of the United States, most states wrote new constitutions which had direct elections for both chambers of the legislature. This model helped influence the U.S. Constitution and was then adopted by new states which later joined the union . Members of the smaller chamber represent more citizens and usually serve for longer terms than members of the larger chamber, generally four years. In 41 states,

1026-437: The U.S. Senate , because that chamber's makeup is prescribed by the U.S. Constitution .) During a legislative session , the legislature considers matters introduced by its members or submitted by the governor. Businesses and other special interest organizations often lobby the legislature to obtain beneficial legislation, defeat unfavorably perceived measures, or influence other legislative action. A legislature also approves

1080-646: The U.S. state of Maryland that convenes within the State House in Annapolis . It is a bicameral body : the upper chamber , the Maryland Senate , has 47 representatives, and the lower chamber , the Maryland House of Delegates , has 141 representatives. Members of both houses serve four-year terms. Each house elects its own officers, judges the qualifications and election of its own members, establishes rules for

1134-559: The United States , the state legislature is the legislative branch in each of the 50 U.S. states . A legislature generally performs state duties for a state in the same way that the United States Congress performs national duties at the national level. Generally, the same system of checks and balances that exists at the federal level also exists between the state legislature, the state executive officer (governor) and

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1188-404: The governor and to try articles of impeachment. (In a few states, a separate executive council, composed of members elected from large districts, performs the confirmation function.) Nebraska originally had a bicameral legislature like the other states, but the lower house was abolished following a referendum, effective with the 1936 elections. The remaining unicameral (one-chamber) legislature

1242-535: The General Assembly adjourned early on March 18, 2020, for the first time since the Civil War . Each senator or delegate must be a U.S. citizen and a resident of Maryland for at least one year preceding his or her election. A prospective legislator must have resided in the legislative district the candidate seeks to represent for the six months prior to election. A senator must be at least twenty-five years of age at

1296-724: The Governor and his agencies and are not proposals of the Speaker of the House, the President of the Senate, the Minority Leader, or the respective Committee Chair. They are listed with the official title of a legislator rather than the Governor due to requirements in the Maryland Constitution . The legislative procedure , is divided into distinct stages: State legislature (United States) [REDACTED] [REDACTED] In

1350-418: The House of Representatives. The order of business in each house provides a proper time for the introduction of bills. Bills are usually assigned consecutive numbers, given in the order of their introduction, to facilitate identification. Usually a bill cannot become enacted until it has been read on a certain number of days in each house. Upon introduction, a bill is usually read by its title only, constituting

1404-799: The National Conference of The Council of State Governments (CSG), headquartered in Lexington, Kentucky, with offices in Washington, DC; New York City; Chicago; Atlanta; and Sacramento, and at the annual meetings of CSG's regions, The Southern Legislative Conference, The Midwestern Legislative Conference, the Eastern Regional Conference and CSG West, and at the Legislative Summit of the National Conference of State Legislatures , which

1458-487: The basis of representation in most state legislatures was modeled on that of the U.S. Congress : the state senators represented geographical units, while members of the larger chamber represented population. In Reynolds v. Sims the Supreme Court decided upon the one man, one vote standard for state legislatures and invalidated representation based on geographical units regardless of population. (The ruling does not affect

1512-428: The bill, the entire legislature gives consideration to its passage. At this time, the bill may be studied in detail, debated, amended, and read at length before final passage. If the majority vote in favor of the bill, it is recorded as passed. Transmission to second house A bill that is passed in one house is transmitted, along with a formal message, to the other house. If the bill is not reported from committee or

1566-413: The bills that have been referred to them to decide if the assigned bills should be reported for further action. For most bills, the recommendations of the committee are followed, although either house is free to accept or reject the action of the committee. Bills reported favorably by a committee may be placed on a regular calendar (the agenda of the deliberative body). Most of the work of the legislature

1620-421: The calendar for the next legislative day. This second reading is made by title only. The regular calendar is a list of bills that have been favorably reported from committee and are ready for consideration by the membership of the entire house. Third reading Regardless of where a bill is placed on the calendar, once the bill is considered and adopted, this is called the third reading. At this third reading of

1674-521: The colonial Assembly ceased to exist, and was replaced by its modern successor. Starting in 1867, the Assembly became increasingly unrepresentative. As the population of Baltimore increased, it and other urban areas were not granted additional seats. By 1918, the city's population had increased 175% while the entire state gained only 46% with no reallocation of political power. Due to the COVID-19 pandemic ,

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1728-519: The conduct of its business, and may punish or expel its own members. The General Assembly convenes its legislative session for 90 days each year to act on more than 2,300 bills including the state's annual budget, which it must pass before adjourning sine die . The General Assembly's 446th session convened on January 10, 2024. The forerunner of the Maryland General Assembly was the colonial institution, an Assembly of Free Marylanders (and also Council of Maryland). Maryland's foundational charter created

1782-434: The creation and development of innovative products and services." The Maryland General Assembly placed several stipulations in the legislation designed to foster competition and maintain a level playing field between the retail suppliers and the local utilities. First, the utility would be required to eliminate their generation plants, either through sale or through transfer to a non-regulated business unit. This would force both

1836-626: The delivery of the power. As of 2012, Maryland residents had the 15th highest electricity rates in the United States and average monthly residential electric bills in Maryland were the 4th highest in the nation. According to the Maryland Public Service Commission , Maryland considered deregulating "to put downward pressure on costs, thus providing consumers with the lowest possible prices for electricity, to allow all customers to choose their power supplier, to provide incentives for

1890-424: The first reading of the bill. Because a bill is usually read by title only, it is important that the title give the members notice of the subject matter contained in the bill. A 2013 study of state legislatures found that of the 99 studied, about half, 53, had roll rates below 5% . And most, 83, had roll rates below 10% . When a bill passes where most votes are from the minority party and "moderate" members of

1944-556: The larger chamber is called the House of Representatives. Five states designate the larger chamber the assembly, three states call it the House of Delegates, and one has just one chamber. Members of the larger chamber usually serve for terms of two years. The larger chamber customarily has the exclusive power to initiate taxing legislation and articles of impeachment . Prior to the United States Supreme Court decisions Baker v. Carr (1962) and Reynolds v. Sims (1964),

1998-489: The legislative process significantly. The President and the Speaker appoint the members of most committees and name their chairs and vice-chairs, except in the case of the Joint Committee on Investigation whose members elect their own officers. The President and Speaker preside over the daily sessions of their respective chambers, maintaining decorum and deciding points of order. As legislation is introduced, they assign it to

2052-603: The legislature is considered full-time, the session may last all year, with periodic breaks for district work. Some states have varying lengths for odd-numbered and even-numbered years, or allow for a fixed number of either legislative or calendar days. Georgia for example, allows only 40 legislative days per year, and Wyoming allows 60 legislative days per term and no more than 40 per one calendar year. Whereas in Michigan , New Jersey , New York (in odd-numbered years), Ohio , Pennsylvania and Wisconsin (in odd-numbered years),

2106-452: The legislature often accepts the final recommendations of its standing committees. As has been noted, however, the legislature does not completely abdicate its responsibility for the consideration of pending bills. If the need arises, the members of either house can force a committee to take action on a bill, or they can ignore the committee's recommendations. Pocket veto and discharge petitions Pocket veto powers are common, which allows

2160-862: The legislature the legislative assembly . The responsibilities of a state legislature vary from state to state, depending on state's constitution . The primary function of any legislature is to create laws. State legislatures also approve budget for state government. They may establish government agencies, set their policies, and approve their budgets. For instance, a state legislature could establish an agency to manage environmental conservation efforts within that state. In some states, state legislators elect other officials, such as governor. State legislatures often have power to regulate businesses operating within their jurisdiction. They also regulate courts within their jurisdiction. This includes determining types of cases that can be heard, setting court fees, and regulating attorney conduct. Other responsibilities Under

2214-525: The major part of them ... shall think good. In addition, the Lord Proprietor could summon any delegates whom he desired. In 1639, noting that Parliament had not been summoned in England for a decade, the free men of Maryland passed an act to the effect that "assemblies were to be called once in every three years at the least", ensuring that their voices would be regularly heard. During the American Revolution

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2268-399: The manner of appointing the state's presidential electors . Formerly, state legislatures appointed the U.S. Senators from their respective states until the ratification of the 17th Amendment in 1913 required the direct election of senators by the state's voters. Sometimes what the legislature wishes to accomplish cannot be done simply by the passage of a bill, but rather requires amending

2322-401: The number of bills that a legislator can introduce per year according to NCSL . Most limits are set by internal legislative rules, while Louisiana's legislature is limited by constitutional amendment. Generally, the legislative bodies and their committees use either Mason's Manual of Legislative Procedure or an amended form thereof. During official meetings, a professional parliamentarian

2376-400: The sessions usually last all year. Four state legislatures – Montana , Nevada , North Dakota and Texas – meet only biennially. In the early 1960s, only 19 legislatures met annually, but by the mid-1970s, it had increased to 41. The latest legislature to switch to annual sessions was Oregon in 2011, following a voter-approved ballot measure. Many state legislators meet every year at

2430-447: The sixteenth bill introduced in the House of Delegates. The numbering starts afresh each session. The names of the sponsor (and co-sponsors, if any), the legislator who introduced the bill, becomes part of the title. Bills listed as "The Speaker (By Request of Administration)", "The President (By Request of Administration)", "Minority Leader (By Request of Administration)", or "Committee Chair (By Request of Department)" are bills proposed by

2484-420: The state judiciary . A state is permitted to use a parliamentary system , or any other system of government, if it so desired. In 27 states, the legislature is called the legislature or the state legislature , while in 19 states the legislature is called the general assembly . In Massachusetts and New Hampshire , the legislature is called the general court , while North Dakota and Oregon designate

2538-414: The state constitution. Each state has specified steps intended to make it difficult to alter the constitution without the sufficient support of either the legislature, or the people, or both. All states except Nebraska have a bicameral legislature. The smaller chamber is called the senate, usually referred to as the upper house. This chamber usually has the exclusive power to confirm appointments made by

2592-483: The state's operating and capital budgets, which may begin as a legislative proposal or a submission by the governor. In most states, a new state legislature convenes in January of the odd-numbered year after the election of members to the larger chamber. The period during which the legislature remains in session varies by state. In states where the legislature is considered part-time, a session may last several months; where

2646-405: The suppliers and the utility to use the wholesale energy market to procure power. Baltimore Gas and Electric Company (BGE) chose to transfer its generation to Constellation Generation Group. Both BGE and Constellation Generation Group are subsidiaries of Constellation . Second, customers would be forced to stay on POLR rates for a number of years. During this time, POLR rates would remain frozen at

2700-450: The terms of Article V of the U.S. Constitution , state lawmakers retain the power to ratify Constitutional amendments which have been proposed by both houses of Congress and they also retain the ability to call for a national convention to propose amendments to the U.S. Constitution. After the convention has concluded its business 75% of the states will ratify what the convention has proposed. Under Article II , state legislatures choose

2754-462: The three delegates are elected at large from the whole district via block voting . However, in some more sparsely populated areas of the state, the districts are divided into subdistricts for the election of delegates: either into three one-delegate subdistricts or one two-delegate subdistrict and one one-delegate subdistrict. The Senate is led by a President and the House by a Speaker whose respective duties and prerogatives enable them to influence

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2808-455: The time of election and a delegate at least twenty-one. Military officers other than members of the reserves are not eligible for election to the General Assembly. Each term lasts four years. However, members of the General Assembly are not term-limited . If a vacancy occurs in either house through death, resignation, or disqualification, the Governor of Maryland appoints a replacement whose name

2862-517: Was not in favor of deregulation, but was threatened with an override if he opted to veto. Prior to this legislation, the local electric utility was in charge of procuring and delivering power to the people in their service territory. Under the new legislation, the consumer could choose to continue purchasing power from the local utility (known as Standard Offer Service (SOS) or Provider of Last Resort (POLR)) or to purchase power from an electric retail supplier. The local utility would still be responsible for

2916-501: Was passed providing that: from henceforth and for ever everyone being of the council of the Province and any other gentleman of able judgement summoned by writ (and the Lord of every Manor within this Province after Manors be erected) shall and may have his voice, seat, and place in every General Assembly ... together with two or more able and sufficient men for the hundred as the said freedmen or

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