Parran rips O'Malley for merger role

Friday, Sept. 25, 2009

The sharply-worded op-ed sent to several newspapers by Calvert County Commissioners' President Wilson H. Parran torches O'Malley (D) for impeding the sale of half of Constellation Energy Group's nuclear assets to a French utility and thereby jeopardizing the construction of a coveted third reactor at Calvert Cliffs Nuclear Power Plant.

In the letter, co-signed by the other four Calvert commissioners, Parran (D) writes that O'Malley "has worked to torpedo the deal and denigrate Constellation," one of the state's biggest employers and largest taxpayers. He questions O'Malley's motives in resorting "to pseudo-populism in an unseemly bid to wring concessions out of the company."

Calvert officials have endorsed the project and said the expansion of Calvert Cliffs in Lusby will create thousands of temporary and permanent jobs, reap millions in new tax revenue for the county and help solve Maryland's long-term energy shortfall.

Administration aides maintain that the governor is simply trying to get the best deal for ratepayers of Baltimore Gas & Electric, a wholly-owned Constellation subsidiary.

"It is very much in the public's interest to ensure that every step of this process is done in a way that doesn't cheat ratepayers at the benefit of a few CEG executives who could potentially fly out with golden parachutes following the approval of an EDF deal that could cost consumers additional money," Shaun Adamec, an O'Malley spokesman, said in an e-mail. "The governor's objective is to ensure this deal is done in the interest of ratepayers, period."

Adamec also noted that the proposed merger between Constellation and Electricite de France offers no guarantees about the development of a third reactor upon approval of the deal.

Parran did not return calls for further comment.

The letter, which also questioned O'Malley's "myopic focus on BGE ratepayers," prompted some Annapolis watchers to wonder if it was politically smart to publicly rip the governor at a time when counties could face a second round of budget reductions to close a more than $200 million shortfall for fiscal 2010.

Parran serves as president of the Maryland Association of Counties.

The organization's executive director said he is not worried that O'Malley would penalize counties in retaliation for Parran's letter.

"Wilson has to wear two hats as MACo president but also as president of his board of commissioners and I think he exercises good judgment to speak his mind on issues for both constituencies," said MACo's Michael Sanderson. "I don't think the administration is going to take a budget-related action as retribution for things that are going on in other policy issues. I don't think they have that luxury.

"The budget problem is so serious and widespread, it's not a matter of local governments being picked on for being bad actors."

Republican gubernatorial candidate Mike Pappas also weighed in this week on O'Malley's attempt to "shake down" Constellation for more concessions and risking the creation of thousands of jobs in the process.

"The governor should stop using the Public Service Commission to harass Constellation Energy as yet another campaign year stunt," Pappas said in a statement.

abrody@somdnews.com