Maryland Senate Approves Significant Clean Energy Expansion

Legislation will increase use of wind and solar while creating family-sustaining jobs and healthier air
Annapolis, M.D.— Today, the Maryland Senate voted by a resounding 31-14 margin to approve legislation that will significantly expand the state’s renewable energy standard. The bill, called the Clean Energy Jobs Act (SB 921) will ensure Maryland gets 25 percent of its electricity from renewable energy sources like wind and solar by 2020, up from the current goal of 20 percent by 2022. The accelerated target would rank Maryland sixth nationally in terms of ramping up clean energy use by 2020, right behind Vermont, California, Hawaii, New York, and Connecticut.
The House of Delegates passed the Clean Energy Jobs Act (HB 1106) by a bipartisan 92-43 margin last month. The House and Senate must take final votes to approve the same version of the bill before it heads to Governor Larry Hogan’s desk.
“Maryland is on the cusp of cementing its national leadership role among states in solving climate change,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “After approving deeper climate pollution cuts, the General Assembly is now poised to accelerate clean energy solutions.”
Expanding Maryland’s Renewable Portfolio Standard to 25 percent means roughly 1,300 new megawatts of clean energy will be generated. Maryland’s solar industry already includes more than 170 companies and over 4,300 jobs today. This increase will create over 1,000 new Maryland jobs during construction per year and new solar companies in Maryland too. In addition, it will create approximately 4,600 direct jobs in our region from wind.
“Today’s vote is a major step toward growing Maryland’s clean energy economy,” said Senator Catherine Pugh, lead sponsor of SB 921. “This bill will create good-paying jobs and healthier air for communities in Baltimore and across Maryland that urgently need both.”
“2016 is proving to be a landmark year for clean energy progress in Maryland,” said Delegate Bill Frick, lead sponsor of HB 1106. “Maryland has a real opportunity to harness clean energy as a new economic engine for our state.”
The Senate version of the Clean Energy Jobs Act will also advance Maryland’s efforts to build a diverse clean energy workforce. SB 921 was amended to create a working group process among government agencies and clean energy stakeholders to examine the best funding opportunities through new and existing programs to invest in job training and to remove barriers to entry for minority- and women-owned clean energy businesses. The bill also makes small minority- and women-owned businesses in Maryland eligible to receive dedicated funding for market growth through the state’s “Strategic Energy Investment Fund.”
“This bill is a big win for working families in Maryland, ensuring that solar, especially community solar, continues to grow in our state, giving everyone a chance to finally participate in the clean energy future,” said Nadya Dutchin, of Groundswell.
Contact: Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

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The Maryland Climate Coalition brings together environmental, faith, health, labor, and civic organizations to advance clean energy and climate policies in Maryland. For more information about the Maryland Climate Coalition, visit http://www.marylandclimatecoalition.org.

CCAN Applauds Attorneys General of Maryland, Virginia and DC For Joining First-of-its-Kind Climate Coalition

NEW YORK — The Attorneys General of Maryland, Virginia and Washington, D.C. announced today that they are joining a first-of-its-kind coalition of state attorneys general to defend and push for more aggressive action on climate change.
Maryland Attorney General Brian Frosh and Virginia Attorney General Mark Herring joined a press conference this morning. At the event, the attorneys general of Massachusetts and the U.S. Virgin Islands indicated they are joining New York and California in investigating whether Exxon deliberately defrauded investors and the public by concealing climate science for decades. Frosh indicated he is considering joining by stating that ExxonMobil and other companies need to “tell the truth about climate change.” Herring said he will look at whether there are legal cases his office needs to be involved in.
Mike Tidwell, director of the Chesapeake Climate Action Network, had the following statement in response:
“We applaud Attorneys General Frosh, Herring and Racine for joining this unprecedented coalition and committing to put their legal muscle into aggressive climate action. Fossil fuel corporations, top among them ExxonMobil, have lied about climate change for years, and communities across our region are already seeing the consequences. After flooding our democracy with millions of dollars aimed at suppressing the truth, ExxonMobil’s pollution is now flooding our shorelines from Norfolk to Annapolis. These actions were clearly immoral and, as was found with Big Tobacco, likely illegal too.
“We are especially encouraged by Attorney General Frosh’s comments indicating that he is considering joining his colleagues in investigating Exxon. Brian Frosh has consistently championed climate action, and joining a probe of Exxon would be a natural next step. We urge Attorney General Mark Herring and Attorney General Racine to add their legal muscle to a joint investigation as well. Our region is fortunate to have three top law enforcement officials who recognize the urgency of climate change, and we urge them to use every tool at their disposal to act.”
Contact: Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

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DC Decision to Approve Exelon-Pepco Merger Will Harm the Environment and Ratepayers For Years to Come

WASHINGTON, D.C — In a stunning decision, the D.C. Public Service Commission voted 2-1 today to rubber-stamp a widely opposed merger deal that allows Chicago-based utility giant Exelon to take over Pepco.
Commissioners Joanne Doddy Fort and Willie Phillips approved the deal, while Chairman Betty Ann Kane remained steadfast in her opposition, based on the fundamental conflict between Exelon’s failing business model and D.C.’s commitment to clean, affordable energy.
Mike Tidwell, director of the Chesapeake Climate Action Network, released the following statement in response:
“This decision will go down in history as one of the worst ever by the D.C. PSC, and as a big setback for ratepayers and the environment across the District and Maryland. Commissioners Fort and Phillips have turned D.C. ratepayers over to a Chicago-based corporation interested only in propping up its own bottom line.
“The Commissioners’ approval of the Exelon-Pepco deal, after it had lost the support of every other major party from the mayor to the People’s Counsel, defies logic and shows a stunning lack of judgment. It also defies the overwhelming will of D.C. citizens, neighborhood, faith, small business, social justice, and environmental leaders. While Exelon lobbyists are cheering, DC residents must now brace for big rate hikes and new roadblocks to clean energy.
“Today’s ruling sharpens the need for a regionwide grassroots push for structural change in our energy policy and our politics. Exelon has a vested interest in protecting its aging nuclear fleet at all costs, including suppressing the growth of community-based clean energy and micro-grids. This merger will make it harder for DC — and Maryland — to fulfill official commitments to address climate change. But we are determined to fight harder than ever to protect our region’s clean energy progress, and to enact laws that keep Exelon from poisoning climate solutions along with our politics.”
For more information on the broad-based D.C. coalition that fought the Exelon-Pepco merger, see: http://www.powerdc.org.
Contact:
Mike Tidwell, 240-460-5838 (cell), mtidwell@chesapeakeclimate.org
Kelly Trout, 717-439-0346 (cell), kelly@chesapeakeclimate.org

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Activists Launch ‘Golf Cart Shuttle’ Between DEQ and Dominion Headquarters to Highlight Cloud Over Coal Ash Decisions

–A putting green, golf cart shuttle ‘courtesy of Dominion,’ and Master’s-inspired banner are greeting DEQ employees right now
–Activists question cozy culture of influence after revelation that Virginia’s top environmental regulator, David Paylor, took a golf vacation on Dominion’s dime
Richmond, Va. — Two dozen concerned citizens are currently staging a “golf tournament” in front of the headquarters of the Virginia Department of Environmental Quality to highlight the questionable relationship between the agency’s director, David Paylor, and Dominion Virginia Power, the state’s largest climate polluter.
Recent reporting by Washington’s WAMU radio station revealed that Paylor, the top state official responsible for overseeing Dominion’s controversial coal ash disposal plans, let Dominion pay his way to the 2013 Master’s golf tournament, a trip valued at $2,300. Activists are concerned that this gift is emblematic of a longstanding, cozy relationship between Dominion and top state officials, one they worry is negatively impacting the quality of Virginians’ air and water.
As of 9:30 a.m. this morning, Department of Environmental Quality employees and passersby will have a chance to play mini golf on a large putting green, or hop on-board one of two golf cart shuttles offering courtesy trips to Dominion’s downtown offices. A large green banner, themed after the Master’s logo and slogan reads, “Dominion & DEQ: A tradition unlike any other.”
“Virginia’s top environmental regulator should never have considered accepting gifts, let alone a golf vacation, from Virginia’s top polluter,” said Drew Gallagher, field organizer at the Chesapeake Climate Action Network. “This is a glaring conflict of interest, and it raises troubling questions about who is truly looking out for the health and safety of Virginians. From coal ash pollution to pipelines to climate policy, we see Dominion’s interests being put before those of the public time and again.”
DEQ ignited a firestorm of criticism in January, when the agency and the State Water Control Board signed off on permits that allow Dominion to dump millions of gallons of toxic coal ash wastewater into the Potomac and James Rivers. Those permits allowed Dominion to discharge toxins like arsenic at levels far exceeding limits set by neighboring North Carolina. DEQ will decide this spring on additional water discharge permits, as well as solid waste permits that would allow Dominion to “cap” leaky, unlined coal ash ponds in place, where toxins could continue to leach into Virginia waterways for decades to come.
Advocates and concerned citizens say that Director Paylor’s actions have raised alarm bells beyond the issuing of these controversial permits:

  • Paylor repeatedly said that “no water was discharged” into state waters in response to questions about Dominion’s secretive and potentially illegal dumping of nearly 30 million gallons of untreated coal ash wastewater into Quantico Creek, a tributary of the Potomac River, in May 2015. Dominion and DEQ later admitted the dumping had happened, prompting the Potomac Riverkeeper Network and the city of Dumfries to call for a criminal investigation by the Environmental Protection Agency.
  • In March of 2015, Paylor testified before the U.S. Congress in support of industry-backed legislation that would have delayed, weakened, and eliminated various health and safety provisions in new federal rules for coal ash disposal. In testifying, Paylor misrepresented himself as sharing “Virginia’s views,” even though he was not testifying on behalf of the McAuliffe administration.
  • For over a decade, spanning Paylor’s tenure at DEQ, the agency has known that Dominion’s coal ash ponds at the Chesapeake Energy Center along the Elizabeth River and at the Possum Point plant along Quantico Creek have been leaking high levels of dangerous pollutants into groundwater and local waterways. Given DEQ’s failure to address this toxic contamination, the Southern Environmental Law Center and the Sierra Club have sued Dominion under the federal Clean Water Act.

Contact:
Drew Gallagher, (804) 896-2654, drew@chesapeakeclimate.org
Photos from today’s action are available for use at: https://www.flickr.com/photos/chesapeakeclimate/albums/72157663967379614

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Maryland House Advances Major Bill to Expand Renewable Energy

ANNAPOLIS—The Maryland House of Delegates voted by a resounding, bipartisan margin — 92-43 — this morning to advance the Clean Energy Jobs Act of 2016 (HB 1106), legislation that will accelerate the state’s reliance on solar and wind power. The bill raises Maryland’s Renewable Portfolio Standard requirement to 25 percent by 2020, up from the current goal of 20 percent by 2022.
By creating incentives for roughly 1,300 megawatts of new clean energy, the bill is expected to create more than 1,000 new Maryland solar jobs and to reduce climate pollution by the equivalent of taking 563,000 passenger vehicles off the road every year. The bill now moves to the Senate for approval.
Provisions in the original bill coupled this renewable energy expansion with a record-large investment into job training and minority- and women-owned business development in the clean energy industry. Leaders in the General Assembly now plan to combine those provisions into a separate, comprehensive workforce development bill. Advocates remain committed to passing both.
James McGarry, Maryland policy director at the Chesapeake Climate Action Network, had the following statement in response:
“We applaud the House of Delegates for another resounding vote for climate solutions. By ensuring that more of our homes are powered by wind and solar, the Clean Energy Jobs Act will create thousands of good-paying jobs, prevent hundreds of asthma attacks, and reduce the carbon pollution causing record weather extremes. This is a win-win for our economy and for the health of all Marylanders.
“As Maryland leads in tackling climate change, we must also lead in building a clean energy economy that benefits everyone. Our lawmakers can do both this year by passing the Clean Energy Jobs Act alongside a comprehensive plan to invest in job training.”
Contact:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
James McGarry, 914-563-2256, james@chesapeakeclimate.org

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MD Lawmakers Approve One of the Nation’s Strongest Greenhouse Gas Reduction Goals

ANNAPOLIS—By an overwhelming, bipartisan margin of 100-37, the Maryland House of Delegates today gave final approval to legislation that commits the state to one of the strongest greenhouse gas reduction targets in the nation. The bill requires Maryland to reduce climate pollution economy-wide by 40 percent below 2006 levels by the year 2030, deepening the state’s existing mandate first passed in 2009. Only California and New York have set higher climate goals, which were enshrined through executive action.
“This bold, and strikingly bipartisan, commitment to stronger climate action will help protect Maryland’s economy, health, and increasingly flooded shoreline,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “As the pace of climate disruption takes off, from record-shattering heat to record rates of sea-level rise, we must pick up the pace of action. Our climate-vulnerable state is now leading the way, showing that reducing carbon pollution is not a partisan question, but an urgent necessity.”
The Greenhouse Gas Reduction Act of 2016 (HB 610/SB 323) renews and extends a landmark law first passed in 2009. That law requires Maryland to reduce emissions by 25 percent below 2006 levels by the year 2020. It also spurred the creation of Maryland’s comprehensive Climate Action Plan, which contains more than 150 programs designed to reduce emissions. According to a state study, Maryland’s existing climate programs are on pace to generate between $2.5 billion and $3.5 billion in net economic benefits and to create and maintain between 26,000 and 33,000 new jobs. The Senate approved the bolder 2016 bill by a 38-8 margin in late February.
The new, forty-percent emission reduction goal was unanimously recommended by Maryland’s bipartisan Commission on Climate Change last fall – including union leaders, business and environmental advocates, and six Republican cabinet secretaries from the Hogan administration. Maryland’s Secretary of the Environment, Ben Grumbles, and the Maryland Chamber of Commerce testified in support of the stronger target during bill hearings in Annapolis.
“By leading in carbon reduction, Maryland can simultaneously lead in creating new jobs and economic opportunities through clean energy,” added Tidwell, who also serves on the state’s climate commission. “The overwhelming support we see for more aggressive climate action in Maryland is no accident. It reflects years of statewide education and organizing, as well as the proven reality that climate solutions create jobs and grow our economy. In fact, Maryland lawmakers will ensure huge new gains for solar, wind, and good-paying jobs by also voting to expand our state’s renewable energy standard in 2016.”
Contact:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
James McGarry, 914-563-2256, james@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Maryland, Virginia, and Washington, D.C. CCAN is building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions: www.chesapeakeclimate.org.

In Grassroots Victory, Obama Administration Protects Virginia and the Atlantic Coast from Offshore Drilling

WASHINGTON, D.C.—The Obama administration today released an updated draft five-year plan for oil and gas development in federal waters that would keep drilling off limits in the Atlantic, protecting coastal communities from Virginia to Georgia. This decision, a dramatic reversal from the administration’s previous plan, responds to the widespread and vocal opposition of more than 110 East Coast communities, more than 700 state and local elected officials, more than 1,000 business interests, and thousands of citizens.
Advocates have underlined that any new drilling in our oceans would usher in unacceptable risks to coastal economies while worsening global warming.
Mike Tidwell, director of the Chesapeake Climate Action Network, released the following statement in response:
“This is a great step forward for Virginia’s coast and our climate. Thanks to the strong and sustained opposition of coastal cities, business leaders, and citizens, the Atlantic coast will remain safe from oil rigs for years to come. This decision will prevent disastrous oil spills while helping to protect our vulnerable coast from rising sea levels. As rising waters flood Virginia’s coast on a routine basis, we need to be investing 100% in clean energy, not digging an even deeper hole of pollution.
“Lieutenant Governor Ralph Northam, the county governments on Virginia’s Eastern Shore, business and local leaders across Hampton Roads, and thousands of regular citizens deserve credit for telling the Obama administration ‘no’ to new drilling off Virginia’s coast. Thankfully, their call was heard above that of Governor McAuliffe, who stood on the wrong side of this decision. We urge Governor McAuliffe to stand up for our coast and climate now by affirming his support for President Obama’s decision.
“Ultimately, new drilling anywhere threatens our coastlines everywhere, which is why President Obama must remove the Arctic from his next draft plan, along with any new drilling in the Gulf of Mexico. Climate leadership requires keeping fossil fuels in the ground, period.”
Contact:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
Harrison Wallace, 804-305-1472, harrison@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Virginia, Maryland and Washington, DC. CCAN is building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions: www.chesapeakeclimate.org.

Exposé Shows Dominion’s Influence Clouds Top Levels of Coal Ash Decision-Making in Virginia

WAMU reveals that Virginia’s top environmental regulator took a golf vacation on Dominion’s dime
RICHMOND—A major DC media outlet published an exposé this afternoon detailing how the money and political influence of Dominion Virginia Power has touched all levels of Virginia’s response to the company’s controversial plans to discharge toxic coal ash wastewater into rivers. In the most alarming example, Virginia’s chief environmental regulator, David Paylor, accepted lavish gifts from Dominion Virginia Power despite being the primary state official entrusted with overseeing Dominion’s compliance with state environmental laws.
The exposé, published this afternoon on Washington’s WAMU, shows that Paylor let Dominion — the state’s largest utility company and biggest polluter — pay his way to the 2013 Masters’ golf tournament in Augusta, Georgia, a trip valued at $2,300. Additionally, Dominion paid for Paylor’s $1,200 party tab at a nearby Irish pub.
Paylor was already serving as director of the Virginia Department of Environmental Quality when he accepted these gifts — which Dominion admits would be illegal under recently updated state ethics laws. He is now the top state official responsible for regulating Dominion’s coal ash disposal plans.
“Dominion’s influence over Virginia’s General Assembly has been apparent for years, but now it appears to extend to the same regulators entrusted to police the company’s pollution,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “David Paylor vacationed on Dominion’s dime while he was simultaneously entrusted with protecting the public from Dominion’s pollution. This is a stunning conflict of interest.”
Even before today’s revelations, Paylor had come under increasing fire for lax oversight of Dominion. For months, Paylor misinformed the public about Dominion’s secretive and potentially illegal dumping of nearly 30 million gallons of untreated coal ash wastewater into Quantico Creek, a tributary of the Potomac River, in May 2015. Paylor had repeatedly claimed that “no water was discharged,” a claim that was later proven false by Dominion and DEQ’s own admission. The Potomac Riverkeeper Network has called for a criminal investigation by the Environmental Protection Agency.
In January, DEQ signed off on permits that allow Dominion to release millions of gallons of coal ash wastewater into the Potomac and James Rivers without requiring the use of best available technology to first remove harmful toxins. The permits originally allowed Dominion to discharge toxins like arsenic at levels that far exceed limits set by regulators in neighboring North Carolina. Dominion has since voluntarily agreed to stronger treatment plans following numerous protests and legal challenges. The Potomac Riverkeeper Network, represented by the Southern Environmental Law Center, and the state of Maryland continue to challenge the Potomac permit in court.
Meanwhile, for decades, Virginia regulators have looked the other way while coal ash pollution has leaked from Dominion’s Possum Point Power Plant along Quantico Creek and the Chesapeake Energy Center along the Elizabeth River. Yet, Paylor’s DEQ is now preparing to let Dominion “cap” those pits in place without any protective lining. This plan would allow toxic leaching to continue into surrounding groundwater for decades, even as utilities in North and South Carolina move coal ash to modern, lined landfills equipped to protect against contamination.
“Virginians deserve regulators who they can trust will hold Dominion accountable to the highest standards under the law, not the lowest,” concluded Tidwell. “The decisions Paylor is making now will have a huge impact on the health of Virginia waterways and citizens for years to come. How can we trust he is putting the health of Virginians above the profits of Dominion?”
The WAMU story further documents Dominion ties to key state legislators and a member of the Water Control Board involved in votes related to the company’s coal ash plans.
Contact:
Drew Gallagher, 804-896-2654, drew@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Virginia, Maryland and Washington, DC. CCAN is building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions: www.chesapeakeclimate.org.

Dominion coal ash plan fails to protect Virginia waterways and citizens

Dominion coal ash plans show failure of DEQ to enforce health-protective standards; Virginians deserve better

In response to reports of a closed-door media briefing held by Dominion Power today, Mike Tidwell, director of the Chesapeake Climate Action Network, released the following statement:
“From everything we know, Dominion Power’s plan to go forward with the dumping of toxic coal ash wastewater into the James and Potomac Rivers still fails to adequately protect the health of our rivers and local citizens. Instead of holding Dominion to the highest standards, the Virginia Department of Environmental Quality, led by David Paylor, issued lax permits that fail to require the use of ‘best available technology’ and allow Dominion to discharge toxins like arsenic at levels that exceed limits set by neighboring North Carolina. Dominion is now clearly trying to save face in response to deep public concern and calls for a federal investigation of its secretive dumping of coal ash wastewater into Quantico Creek in May of 2015.
“Instead of assurances from Dominion, Virginians need regulators setting and enforcing strict standards that safeguard human health. Neither Dominion nor Director Paylor have addressed the real root problem. Dominion wants to simply ‘de-water’ the state’s coal ash ponds and then cap the ponds in place. This allows not only for toxic liquids to be poured into the James, Potomac and other rivers, but leaves the capped pond bottoms with no protective lining, thus allowing toxic leaching to continue into surrounding groundwater for decades. This falls short of the standard being enforced in North Carolina and South Carolina.
“We believe Governor McAuliffe and Attorney General Herring must step in to halt these permits, and to hold Dominion to the highest standards under the law. The real solution is to require Dominion to use the best available technology to treat the hazardous liquid, and then to remove the remaining toxic pond solids to modern, lined landfills that are properly equipped to protect against drinking water contamination. Time and again, Dominion has shown that it will do the easiest, cheapest, quickest thing it can get away with. Virginia’s rivers and people deserve better.”
Contact:
Drew Gallagher, 804-896-2654, drew@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Virginia, Maryland and Washington, DC. CCAN is building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions: www.chesapeakeclimate.org.

DC Decision to Pave Way for Exelon-Pepco Merger is a Win for ‘Pay-to-Play Politics’

Mayor Bowser betrayed DC citizens while the Public Service Commission has now failed to protect ratepayers and the environment
WASHINGTON, D.C. — In a decision marred by pay-to-play politics, the DC Public Service Commission (PSC) today paved the way for local utility Pepco to be sold to an ailing, out-of-state company, an outcome that advocates say would tarnish Mayor Muriel Bowser’s reputation forever.
At a hearing this morning, the PSC first voted 2-1 to reject widely contested settlement terms — struck between Mayor Bowser, Chicago-based Exelon and Pepco — as failing to satisfy the public interest. However, despite a principled dissent from Chairman Betty Ann Kane, Commissioners Joanne Doddy Fort and Willie Phillips then voted to approve a modified version of the settlement that includes only marginal changes and fails to address the core problems that led the PSC to unanimously reject the deal in August.
In her dissenting remarks, Chairman Kane stated that the fundamental “conflict of interest” remains, the revised settlement terms could “make the situation worse,” and there is “no alternative that will address the fundamental structural problem.”
Exelon, Pepco, and other settling parties will have 14 days to decide whether or not to accept the modified settlement terms. If they do, the merger will be automatically approved by way of the 2-1 PSC vote.
Mike Tidwell, director of the Chesapeake Climate Action Network, released the following statement in response:
“This is a disappointing day for the nation’s capital. If these wholly inadequate changes are agreed to, the result will be the same. While Mayor Bowser and Exelon lobbyists celebrate, DC residents will brace for big rate hikes and new roadblocks to clean energy. Chairman Kane deserves praise as the only decision-maker in this whole process who has steadfastly stood up for what’s right.
“Mayor Bowser betrayed DC ratepayers and our environment in a settlement process that reeked of dirty, pay-to-play politics. And for what? For the Mayor’s pet soccer stadium project, made possible by Pepco’s $25 million payment that smells blatantly of corruption? For a slap on the back from the Mayor’s big developer friends at the now-disbanded FreshPAC? For a few shiny, vague promises from Exelon that pale in comparison to coming rake hikes?
“In the wake of this bankrupt process, the majority of PSC commissioners have failed in their duty to protect the public. As Chairman Kane emphasized, the revised deal is fundamentally no different from the deal the commission unanimously rejected last summer when it cited an inherent ‘conflict of interest.’
“If this merger goes forward, it will be a clear win for crony politics. Exelon wants this deal in order to milk DC ratepayers for maximum profits, and prop up its own troubled bottom line. After a barrage of lobbying, ads, and back-room dealing, Mayor Bowser, and now the PSC, have agreed to turn DC ratepayers over to Exelon without securing any substantive public benefit in return. In contrast, thousands of DC residents, a majority of DC’s neighborhood leaders, and faith, small business, social justice, and environmental leaders recognized the indisputable facts, and fought this deal to the very end. Today’s ruling only sharpens the need for a citywide grassroots push for structural change in our energy policy and our politics.”
Contact:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
Mike Tidwell, 240-460-5838, mtidwell@chesapeakeclimate.org

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The Chesapeake Climate Action Network is the biggest and oldest grassroots organization dedicated to fighting climate change in Maryland, Washington, D.C. and Virginia. CCAN is building a powerful movement to shift our region away from climate-harming fossil fuels and to clean energy solutions: www.chesapeakeclimate.org.


SUMMARY OF SCANDAL-PLAGUED EVENTS LEADING UP TO EXELON-PEPCO MERGER RULING

April of 2015: FreshPAC launched. Close allies of the Mayor launch a highly controversial political action committee called FreshPAC. A quirk in DC campaign laws allows unlimited contributions to the super PAC from companies and businesses, including those with business before the Mayor and City Council. The PAC is highly criticized by the media, voters, and members of the City Council as a fund that appears open to abuse and pay-to-play politics.
August 25, 2015: Exelon-Pepco merger rejected. The DC Public Service Commission unanimously rejects the proposed Pepco-Exelon merger as a fundamental “conflict of interest.”
September 18, 2015: Pepco pays Mayor’s office $25 million in “Soccergate” deal. Pepco gives the Office of the Mayor $25 million in cash for vague naming rights of property adjacent to the proposed new soccer stadium at Buzzard Point. The structure of the deal is highly unusual. Researchers have not been able to find another deal like it in the country. Not only is all the money paid up front, at a very high price (proportionally more than the Verizon Center naming rights deal), but the brevity and minimized complexity of the two-page legal agreement is virtually unprecedented.
September 19, 2015: Exelon presents merger “settlement” financial terms the day after “Soccergate” payment. Documents released under the Freedom of Information Act show that, the very next day after the soccer deal, Exelon submits new financial information to the Mayor’s office for settlement purposes.
November 10, 2015: FreshPAC is disbanded after widespread criticism. Critics charged it represented a pay-to-play PAC that tarnished DC politics and the Mayor’s public integrity. Exelon continues to refuse to say whether it was asked to donate to FreshPAC while working with the Mayor’s office on a settlement that would give the company its prized $6.8 billion merger.
December 16, 2015: WAMU reveals that former FreshPAC chair registered to lobby for Exelon on the merger. News breaks that Chico Horton, the director of FreshPAC, registered to lobby for Exelon on the merger on September 30, 2015 – the same time that Exelon was negotiating a settlement with the mayor and while FreshPAC was still active and soliciting huge donations from businesses.
January 2016: Chico Horton, the Exelon lobbyist, says he did no “lobbying.” The former head of Bowser’s FreshPAC declares that he did no lobbying – zero – for Exelon during the intense autumn negotiations between Exelon and the Mayor’s office, despite registering as an Exelon lobbyist. Horton said he simply gave the company “strategic advice” that did not officially constitute lobbying.
February 2016: Documents indicate Mayor’s office misled the public on merger negotiations. Documents released under the Freedom of Information Act indicate that the Mayor’s office repeatedly misled the public as to who in her administration actually coordinated and led the merger settlement negotiations between the city and Exelon. The Mayor claimed and still claims that City Administrator Rashad Young and Tommy Wells, head of the Department of the Environment and Energy, led the negotiations. But FOIA documents show that they were informed of key settlement terms after the deal had been negotiated by others close to the Mayor. Who actually led those talks, and what connection to Exelon or Pepco the city negotiators might have had, is still not known. But it was not Wells or Young, as was claimed. Why the discrepancy?
February 26, 2016: PSC rejects the original settlement, but then gives approval to marginally revised terms. Little substantive changes were required on top of the Mayor’s wholly inadequate settlement. Opponents assert the merger is still a fundamental “conflict of interest” and the process was clearly influenced by big-money “pay-to-play” politics.