You may have heard the news that Governor Martin O’Malley last week gave approval for the potential start of controversial fracking drilling for gas in Western Maryland. The governor released a report — three years in the making — which said that IF a wide range of protective regulations are fully implemented and monitored, then such drilling, in the governor’s view, is acceptable.
We disagree with the governor on this. Period. While Gov. O’Malley’s proposed regulations are by far the toughest ever proposed in the country — and could serve as a model for states that already frack dangerously — they won’t eliminate the significant potential harm to Maryland’s environment and economy, and there’s no guarantee they’d be enforced. We at CCAN and our partners intend to continue to fight against this harmful practice of drilling — and we’ll need you fighting with us.
Here are our key take aways from the governor’s report — and where we’re headed next. Here are the three things you need to know:
1) The safest strategy for drilling for gas in the Marcellus Shale is to NOT drill for that gas at all. We do not believe the state report proves the case that fracking can be done with acceptable public health and environmental safety in Maryland. Further, climate scientists say 80 percent of the world’s known reserves of fossil fuels must stay in the ground if we are to have any hope of stabilizing the world’s atmosphere. Simply put, the gas must stay in the ground.
2) YOUR watchdog pressure has kept fracking at bay so far in Maryland — and it made an impact in shaping Gov. O’Malley’s final report. Your insistent pressure has resulted in recommendations that, if enacted, could make gas companies think twice about whether or not they would want to drill here — according to the American Petroleum Institute’s own lobbyist in Maryland. For example, Governor O’Malley proposed a first-ever rule requiring gas companies to completely eliminate net “leakage” of methane, a powerful heat-trapping gas, from the fracking process. Gas companies would also have to do two years of preliminary water quality testing before they could start drilling. Again, none of this is a victory. But, if it weren’t for your action, fracking might very well already be a reality in Maryland. As it stands, we are still in a position to keep working to make sure it never is.
3) Come January, the ball will be in the court of Governor-elect Larry Hogan — and your representatives in the General Assembly. This is where we’re headed next. While Gov. O’Malley has said his agencies will propose final regulations for fracking before he leaves office, the final decision on what to do with them will rest with incoming Gov. Hogan and our legislators in Annapolis. CCAN is committed to working to pass legislation to prevent a reckless rush to drill in our state.
So, between now and the start of the General Assembly session in mid-January, we’ll keep you posted on the game plan. For now, there are two ways you can take action immediately to help spread the word about the dangers of fracking in Maryland and build the movement to stop it:
Write a Letter to the Editor of your local paper: We need to make sure decision-makers are hearing from concerned Marylanders like you, and that we keep educating our neighbors across the state about the risks of fracking. Contact Shilpa Joshi, at shilpa@chesapeakeclimate.org if you can write a letter to the editor of your local paper, and we’ll follow up with tips and talking points.
Click here to share this graphic on Facebook: In the past week, two prominent state newspapers — the Baltimore Sun and the Frederick News-Post — have published editorials responding to Gov. O’Malley’s report, warning of the risks fracking poses to our health, environment and economy. Keep the “no fracking” buzz going by sharing the news.
We have a lot of work to do in the months ahead. But know this: Passionate Marylanders like you have stood shoulder to shoulder across the state for years to successfully fight harmful gas drilling. You are the reason our state is frack-free today. So let’s keep fighting together to keep it that way.
Thanks for everything you do — and stay tuned for the next steps!
The Marcellus Shale Drilling Advisory Commission is holding a brief public comment session on its final report next Monday evening, December 8, in two locations. Email me at shilpa@chesapeakeclimate.org for more information on how to attend.
Maryland Gov. Martin O’Malley Releases Long-Awaited Report on the Potential Risks of Fracking in Maryland
Statement from Mike Tidwell, Director of the Chesapeake Climate Action Network
Contact: Mike Tidwell, 240-460-5838, mtidwell@chesapeakeclimate.org
“The Chesapeake Climate Action Network commends Governor O’Malley and his agency leaders for their work in producing today’s Findings and Recommendations as part of the ‘Marcellus Shale Safe Drilling Initiative.’ CCAN does not believe this report proves the case that fracking can be done with acceptable public health and environmental safety in Maryland. However, there are groundbreaking and feasible recommendations within this report that should be carefully studied and potentially adopted by neighboring states which – unlike Maryland – have already allowed the active drilling process of fracking for shale gas. Indeed, if fully implemented, many of these ‘best management practices’ would limit the harm already being inflicted nationwide by this controversial gas drilling practice.
“In particular, from the perspective of global warming pollution, Governor O’Malley has offered a first-ever rule that would result in ‘zero methane leakage’ from the fracking process. The report today shows that — by combining the best available drilling technology with the purchase of carbon ‘offsets’ — companies now already fracking in other states can, with rigorous enforcement, effectively reduce to zero the destructive release of the potent greenhouse gas methane. Methane leakage from fracking is a major threat to the global climate and is the subject of worldwide concern among scientists and policy makers. Governor O’Malley today has proposed a real solution to this gas leakage threat.
“But for Maryland, CCAN believes that the safest strategy for drilling for gas in the Marcellus Shale is to not drill for that gas at all. With sea-level rise and other impacts of climate change now directly harming Maryland and much of the world, climate scientists say 80 percent of the world’s known reserves of fossil fuels must stay in the ground if we are to have any hope of stabilizing the world’s atmosphere. This includes the Marcellus Shale gas reserve in America’s central Appalachian Mountains.
“Instead of opening Maryland to the drilling of more fossil fuels, state leaders should continue Governor O’Malley’s proven past commitment to carbon-free wind and solar power. Legislation to double the state’s target for clean electricity will be before the General Assembly in 2015. The legislation would set aside 40% of the state’s electrical grid for renewable sources of power, thus doubling such energy in our state by the year 2025.”
To view the full report, click here: http://www.mde.state.md.us/programs/Land/mining/marcellus/Documents/Final_Distribution_Draft_11.25.14.pdf
EPA’s Clean Power Plan: Whose side is Virginia on?
By now you may have heard that the Environmental Protection Agency has released a new set of rules designed to cut carbon pollution that leads to climate change. As the rules stand today, Virginia must reduce its carbon footprint by 37% by the year 2030 (the guidelines of the rule will be finalized in June of next year).
As predicted, big coal and its defenders have drawn their swords in a clash they’re billing as the ultimate War on Coal showdown between hard-working families and job killers in Virginia.
Of course, the rules aren’t too onerous for the coal industry, but they’re much needed to start curbing the effects on climate change which will get significantly worse over the course of the century unless we take action, as the Intergovernmental Panel on Climate Change (IPCC) recently warned.
EPA is accepting comments from states through December 1st on its new rules. Which begs the question: what side should Virginia be on? And how do these rules affect citizens in the Commonwealth? More importantly, how can Virginia use these rules as an opportunity to grow its clean energy workforce while reducing harmful pollutants in our environment?
Virginia’s State Corporation Commission staff, the administrative body charged with ratemaking within the “public interest” of the citizens, has clearly staked a position on the side against the EPA and its efforts. In an unusually blunt and bombastic set of comments delivered to the EPA, the SCC staff scolded the agency for issuing rules they deemed unlawful, unachievable, and certain to lead to drastic increases in rates for Virginians.
Interestingly, within the SCC staff’s 50-plus pages of comments bashing the Clean Power Plan, is this line: “To be clear, these comments take no position on the broad policy issues regarding how reliability risks and compliance costs caused by the Proposed Regulation compare to the environmental benefits asserted by the EPA.”
Excuse me if I’m mistaken, but isn’t one of the main purposes of the Clean Power Plan, part of President Obama’s Climate Action Plan, to avoid the enormous mounting costs of climate change and, therefore, see the enormous benefits — to our health, economy, and well-being as a society — of reducing CO2 pollution?
A colleague of mine made this analogy. In the late 1990’s the federal government passed a law mandating airbags for most passenger cars, trucks, and vans on the roads. SCC staff’s comments criticizing the Clean Power Plan without considering climate benefits would be akin to some regulatory agency in the 1990’s bashing the airbag law because it increases the price on vehicles while giving the disclaimer that “we take no position on the life saving benefits of vehicle airbags in relation to incremental price increases on vehicles”.
SCC staff’s analysis is shortsighted. However, they are an important group of officials who have become influential in Virginia’s ability to craft policies to meet the new EPA rules, which are due by June of 2016.
On Wednesday, November 19th, SCC staff will brief members of the Senate and House Commerce and Labor committee on their interpretation of the effect these rules have on Virginia. Representatives from the utility industry, Attorney General’s Office, the Department of Environmental Quality, the environmental community, and others, will also have a chance to weigh in. On Wednesday, we will get the opportunity to see where numerous agencies, businesses, and community members stand on the first landmark set of rules designed to help win the climate battle.
We all know the benefits clean energy and less fossil fuel pollution provide citizens. Virginia has the opportunity to leverage these rules to provide a spark to clean energy development and reap millions of dollars in new revenue from 21st century technologies.
It’s time to ask your representatives, state officials, business leaders, and community members: whose side are you really on?
Resisting the Atlantic Coast Pipeline: latest updates
Most Virginians know by now that Dominion Resources has proposed a disastrous 550-mile long mega-pipeline to carve through Virginia, carrying fracked gas for West Virginia to North Carolina. The announcement was hard to miss, especially when Governor McAuliffe stood shoulder to shoulder with Dominion CEO, Tom Farrell, to announce his support of this devastating project.
Join the thousands of Virginians who have already called on Governor McAuliffe to withdraw his support of the Atlantic Coast Pipeline.
After two months of public hearings, Dominion officially pre-filed with the Federal Energy Regulatory Commission (FERC) on October 31st, beginning the environmental review of the project.
But just as Dominion forges ahead on building the pipeline, thousands of concerned Virginians are forging ahead to build the statewide pipeline resistance.
Just one day after Dominion pre-filed with FERC, over 100 pipeline activists gathered in Waynesboro to rally against the pipeline. We heard from numerous landowners and affected families on the ground, made connections with the dozens of local groups organizing throughout the region, and talked about next steps. Check out more photos from the rally on the Friends of Augusta Facebook Page and Event Album here!
The rally was an exciting end to months of public mobilizing, including filling Dominion Open Houses with pipeline activists, publishing dozens of Letters to the Editor, and collecting thousands of petitions.
But since the rally, we’ve only continued to escalate and build our strength. Last week, a delegation of organizers from Augusta County traveled to Washington, DC to meet with FERC’s Chairmen Cheryl A. LaFleur to discuss their concerns over the proposed Atlantic Coast Pipeline. The delegation also met with Senators Mark Warner and Tim Kaine to illustrate the significant statewide opposition to the pipeline.
While we are hard at work making sure Virginia politicians know our power, Dominion is hard at work threatening local landowners to seize their property. Just this week, Dominion sent final notices and threat to sue to the 189 Virginia landowners along the path of the pipeline who have not issued permission for Dominion to survey their land. If you have received a letter from Dominion and need more information, please contact: info@augustacountyalliance.org.
What can you do?
First, sign the petition to Governor McAuliffe calling on him to withdraw his support of the pipeline. CCAN is working with the Augusta Alliance, the Shenandoah Valley Network, and other local organizers to collect 10,000 petitions to deliver to the Governor. Help us reach that goal by signing and sharing with your networks.
Then, stay updated to submit your public comment to FERC on the pipeline. The next few months will have a lot of opportunities to raise your voice, join the fight, and support local residents on the path of the pipeline.
For now, check out the latest News Roundup:
- November 7th: Pipeline Opponents Meet With Federal Officials, NewsLeader
- November 11th: Dominion Sending Final Notice on Gas Pipeline Surveying, Richmond Times Dispatch
- November 2nd: Pipeline Opponents Rally Despite Weather, NewsLeader
- October 28th: Natural Gas Pipeline Heats up in August, WMRA
- September 2nd: McAuliffe Backs 550-mile Natural Gas Pipeline, Disappointing Environmentalists, Washington Post
Ten Myths Debunked: The Proposed Exelon-Pepco Merger in Maryland
In early 2015, the Maryland Public Service Commission (PSC) will hold hearings on the proposed merger between Exelon Corporation and Pepco Holdings, Inc. (Pepco). The proposed merger would make Exelon—already a top political spender in Maryland and a company with a track record of opposing many clean energy policies—the largest utility company in Maryland and the nation.
The PSC must sign off on the merger before it can proceed, which makes it vitally important that all Marylanders become aware of the facts around this case, and voice their concerns now.
Below is a list of ten facts on the proposed merger and Exelon’s track record that debunk common myths.
Click here to view a printable PDF version of the memo.
Fact #1: This merger is NOT a done deal.
It’s a myth that a merger of this type is something that would be hard for the PSC to deny. Nothing could be further from the truth. In fact, the Maryland PSC has a track record of blocking mergers that threaten the public interest.
In 1997, Pepco attempted to merge with Baltimore Gas & Electric Co. (BGE), but the two companies walked away from the deal after the Maryland PSC ordered that the merged company would have to slash electric rates by hundreds of millions of dollars to protect the public. Similarly, FPL Group (now NextEra) tried and failed to acquire Constellation Energy (owner of BGE) in Maryland in 2006. Also in 2006, a proposed merger between Exelon and Public Service Enterprise Group, a New Jersey-based electric utility, was rejected by that state’s Board of Public Utilities after New Jersey officials determined that “the proposed merger would result in a company that is so large, and controls such a significant segment of the gas and electric generation markets, that it could exert market power to drive up energy prices for all New Jersey ratepayers.”[1]
The market power concerns are just as prevalent now. The merger between Exelon and Pepco would give Exelon control over 23.4% of the transmission service activity within our electricity grid region.[2] It is very plausible that with enough surfacing of the facts, Maryland’s PSC could deny the merger or impose enough conditions that the companies decide to walk away. The most important thing right now is that all concerned Maryland residents and businesses make their concerns clear so that they can be fully considered by the PSC.
Fact #2: Exelon is NOT promising to improve Pepco’s reliability goals.
Pepco has a poor track record when it comes to reliability, and many Marylanders are looking for a change. But it’s a myth that Exelon is proposing to do anything more than Pepco. In their merger application, Exelon stated that the company will be “committing to implement Pepco’s current plan to improve system reliability.” In other words, Exelon will do what Pepco was already planning to do anyway. Pepco Holdings has total assets worth $14.8 billion and the company earned $4.7 billion in annual operation revenue in 2013.[3] Exelon is not bringing new ideas to the table to improve reliability, and if Pepco believes that they need outside help to improve their service, the company can use its significant financial resources to hire consultants and contractors to do exactly that.
Fact #3: Exelon publicly champions ANTI-renewable energy policies.
Although Exelon holds some renewable energy assets, solar and wind power account for only 3.7% of the corporation’s total energy resources.[4] It’s a myth that Exelon considers clean energy a top priority. Publicly, the company champions anti-renewable energy policies. Exelon calls itself a “leading voice against the extension of the Production Tax Credit [PTC],”[5] which is the primary federal incentive for promoting land-based wind energy. The PTC is a reasonable way of keeping wind costs down, and by opposing it, Exelon is helping to shift those costs to states like Maryland that have current renewable electricity goals in place. At the same time, Exelon advocates for anti-free market reforms to support their aging nuclear fleet. In 2014 in Illinois, Exelon lobbyists floated the idea of allowing their nuclear plants in that state, which are 35 years old on average, to receive “clean energy credits” like solar and wind.[6] Such a policy would essentially end support for those renewables in favor of Exelon’s decades-old nuclear fleet, which comprise 52% of its generation assets. Later that year Exelon lobbied for a resolution (HR 1146) that required state agencies to devise state funding mechanisms to keep the company’s unprofitable nuclear stations afloat. The resolution directed state agencies to develop “market-based solutions that will ensure that the premature closure of [Exelon’s] nuclear power plants does not occur and that the dire consequences to the economy, jobs, and the environment are averted.”
Fact #4: Exelon’s proposed “Customer Investment Fund” would SHORTCHANGE Maryland.
It’s a myth that Exelon is promising Maryland a $100 million “customer investment fund,” as touted by some commentators. The $100 million would be spread across Maryland, Delaware, New Jersey, and the District of Columbia. Only $40 million would be spent in Maryland, of which $29 million would be spent in the “Pepco” service territory and $11 million would be spent in the Delmarva Power & Light (DPL) territory. Exelon estimates that the money could be spent on bill credits, assistance for low-income customers and energy-efficiency measures, but they do not mention that the proposed $40 million is substantially less than what Pepco utilities already spend on those programs each year.
To put the proposed fund in perspective, Pepco spent $67 million on energy efficiency programs in 2013, including $3.4 million on programs for low-income customers. DPL spent $19 million on energy efficiency programs in 2013, including $2.7 million on programs for low-income customers. Combined, Pepco and DPL spent $86 million on energy efficiency programs in 2013. Pepco and DPL also invested $23 million and $5.7 million respectively in “demand response” programs to decrease energy consumption in their service territories during the highest electricity demand periods.[7] Combined, Pepco and DPL spent $28.7 million on demand response programs in 2013. They invested those funds as part of their EmPOWER Maryland energy efficiency obligations, which are managed by the PSC. Rather than approve the merger and trigger $40 million to be spread across the state, the PSC can and should set nation-leading energy efficiency goals for Pepco, DPL, and Exelon’s subsidiary, BGE, and order them to invest at levels necessary to achieve those goals.
Fact #5: A bigger utility would mean LESS competition—and, potentially, higher rates—for Maryland.
If Exelon merges with Pepco, the Chicago-based corporation would become the largest electric utility in the U.S. It’s a myth that a bigger utility is better for Maryland. The merged utility would provide electricity to over 80% of Maryland ratepayers yet the parent company—Exelon Corporation—would continue to operate the largest fleet of aging nuclear power plants in the country. These nuclear plants have been struggling in recent years due largely to slack energy demand and low electricity rates. This creates a conflict of interest. Exelon would be in charge of keeping electricity rates low for Maryland customers at the same time as their nuclear power plants need to receive higher electricity rates to stay in business. The independent market monitor for PJM, our region’s electricity grid operator, and officials from both Delaware and the District of Columbia have raised concerns that this merger could give Exelon anti-competitive monopolistic power over the electricity market.[8] If this merger is approved, there is a risk that Exelon could use its substantial market power over the regional electric transmission infrastructure to control access to the wholesale electricity market or affect the competitiveness in the wholesale electricity market where the company operates power plants.
Fact #6: Exelon’s track record on efficiency is WORSE than Pepco’s.
It’s a myth that Exelon would do better on energy efficiency. Exelon’s only commitment to energy efficiency in this merger is to “maintain and promote [Pepco’s] existing energy efficiency and demand response programs.” It should be noted that Exelon’s subsidiary, BGE, has a worse energy efficiency track record than Pepco in Maryland. In their 2014 EmPOWER Maryland Energy Efficiency report, the Maryland Public Service Commission projected that the Pepco Holdings subsidiaries, Pepco and Delmarva Power & Light, would achieve 99% and 199% of their 2015 energy savings goals respectively and 96% and 830% of their 2015 peak demand production goals respectively. By contrast, Exelon’s BGE is projected to achieve only 67% of its 2015 energy savings goals and 76% its 2015 peak demand production goals.[9] Similarly, in Illinois, where Exelon is the dominant utility, the company is projected to achieve a dismal 35% to 47% of the statutory efficiency goals in its electricity service territory over the next three years.[10] Exelon has made no specific commitments to improve its performance and its record indicates a lack of commitment to energy efficiency.
Fact #7: The merger could JEOPARDIZE job security for Maryland workers.
It’s a myth that Exelon is promising not to fire employees. While Exelon has committed to no “net” involuntary merger-related job losses of Pepco utility employees for at least two years after the merger, that is very different from saying that they will not fire any Pepco employees. Pepco has 5,000 employees in the mid-Atlantic region. If, for example, Exelon fired 100 lineman after the merger but hired 100 managers, the net number of employees would remain the same (5,000) even though 100 people lost their jobs. Exelon has not made any commitments to retain individual Pepco employees beyond a handful of highly paid executives. Workers are not being promised job security for the next two years, and when the “net employment” commitment period expires, workers will lose even that small token of job protection.
Fact #8: Exelon’s shaky financial footing puts Maryland ratepayers at RISK.
It’s a myth that Exelon would lower rates. For all Pepco’s problems, they are a financially sound company and they do not need a merger to stay afloat. By contrast, Exelon is in a precarious financial position that is overly reliant on an aging and uneconomic nuclear fleet. While Exelon and Pepco have said that they expect the merger to create “synergies” that will create “cost saving opportunities,” they have not identified how those cost savings will be achieved or how those savings will be identified or verified.
Exelon has steadily seen its market value shrink for the last several years, and it is difficult to see how this merger would fundamentally change the company’s risky market position. Exelon Corporation’s shares have declined in value by 30% in the last five years, while shares in Pepco Holdings have risen by 79% over the same period.[11] Fitch Ratings announced a negative warning on Exelon’s credit rating on the day the merger was announced, saying that they “did not consider the acquisition of [Pepco] to meaningfully lessen [Exelon’s] business risk.”[12] If the merger is approved and Exelon’s credit rating declines, Maryland ratepayers could see a rate hike down the line as Exelon faces higher costs of borrowing.
Fact #9: This merger is far different—and RISKIER—than Exelon’s 2012 merger with Constellation.
Exelon did merge with Baltimore-based Constellation Energy in 2012, but it’s a myth that Exelon’s current merger proposal is just a repeat of 2012. The circumstances now are very different. In 2008, Constellation was beset with credit concerns following the Great Recession as the company saw its stock and market value plummet by 56%. The threat of bankruptcy was imminent and the company owned some very risky generation assets. While Pepco is facing challenges in improving reliability and customer service, there is no imminent threat to the company’s financial viability. Pepco stock has increased by 79% in the last five years. This merger is more about Exelon trying to hedge their own risky market position, and should be looked at very differently from the merger that Maryland approved in 2012.
Fact #10: Exelon’s claims on jobs are SHAKY at best.
It’s a myth that this merger would create jobs. In their filing with the PSC, Exelon claimed that the merger will create 6,300 to 7,200 jobs across Maryland. Six thousand of those jobs, though, are expected to come from “enhanced reliability commitments.” Earlier in the application Exelon committed only “to implement Pepco’s current plan to improve system reliability.” So Exelon is committing to create 6,000 jobs by doing what Pepco already said they would do without the merger. Another 1,200 jobs are expected to come from energy efficiency measures through a “customer investment fund.” But Exelon already has energy efficiency programs in Maryland and Illinois, where they run local utilities, and they’re falling short on their statutory goals in both states. Rather than approve this merger, the Maryland PSC can and should set nation-leading energy efficiency goals for Pepco and Exelon’s subsidiary, BGE, and order them to invest at levels necessary to achieve those goals.
For more information please contact:
- James McGarry, Chief Policy Analyst, Chesapeake Climate Action Network, at 240-396-1983 or James@chesapeakeclimate.org
- Tyson Slocum, Energy Program Director, Public Citizen, at 202-454-5191 or Tslocum@citizen.org
1. “Public Advocate and Rate Counsel Oppose Currently Proposed PSEG-Exelon Merger.” State of NJ Division of the Rate Counsel, 26 Apr. 2006. <http://www.state.nj.us/rpa/news/2006/060426_pseg_exelon_merger.html>
2. “Comments of the Independent Market Monitor for PJM.” Before the Federal Energy Regulatory Commission. Docket No. EC14-96-000. 21 Jul 2014. <http://www.monitoringanalytics.com/reports/Reports/2014/IMM_Comment_EC14-96-000_20140721.pdf>
3. Pepco Holdings, Inc. Form 10-K: ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2013. Rep. U.S. Securities and Exchange Commission, 28 Feb. 2014. <http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=62854&fid=9298222>
4. Exelon Corporation. Form 10-K: ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2013. Rep. U.S. Securities and Exchange Commission, 14 Feb. 2014. <http://www.exeloncorp.com/performance/investors/secfilings.aspx>
5. Exelon Corporation. Proc. of Edison Electric Institute Financial Conference. N.p., 12 Nov. 2013. Web. <http://www.exeloncorp.com/performance/investors/events.aspx>
6. Daniels, Steve. “Exelon Warns State It May Close 3 Nukes.” Crain’s Chicago Business. 3 Mar. 2014. <http://www.chicagobusiness.com/article/20140301/ISSUE01/303019987/exelon-warns-state-it-may-close-3-nukes>
7. Maryland Public Service Commission. The EmPOWER Maryland Energy Efficiency Act STANDARD REPORT OF 2014. Rep. N.p., Mar. 2014. Web. <http://webapp.psc.state.md.us/intranet/Reports/2014%20EmPOWER%20Maryland%20Energy%20Efficiency%20Act%20Standard%20Report.PDF>
8. District of Columbia: “Comments of the Office of the People’s Counsel for the District of Columbia.” Before the Federal Energy Regulatory Commission. Docket No. EC14-96-000. 21 Jul 2014. Delaware: “Protest of the Delaware Public Service Commission.” Before the Federal Energy Regulatory Commission. Docket No. EC14-96-000. 21 Jul 2014.
9. Maryland Public Service Commission. The EmPOWER Maryland Energy Efficiency Act STANDARD REPORT OF 2014. Rep. N.p., Mar. 2014. Web. <http://webapp.psc.state.md.us/intranet/Reports/2014%20EmPOWER%20Maryland%20Energy%20Efficiency%20Act%20Standard%20Report.PDF>
10. Hinman, Jennifer M. “Re: Question about ComEd Energy Efficiency Goals.” Message to James McGarry. 22 Sept. 2014. E-mail.
11. PEPCO Holdings, Inc. (POM) and Exelon Corporation (EXC) Stock Chart, 5-year history. 22 Oct. 2009 – 22 Oct. 2014. <http://www.google.com/finance?q=EXC%2C+POM&ei=zmBOVKCtJcmt8gbXkoDYCw>
12. “Fitch Places Exelon’s Ratings on Negative Watch Following Acquisition Announcement.” Business Wire, 30 Apr. 2014. <http://www.businesswire.com/news/home/20140430007060/en/Fitch-Places-Exelons-Ratings-Negative-Watch-Acquisition#.VCx8AfldVnY>
Victory for Beyond Extreme Energy at FERC
“The people gonna rise like the waters,
Gonna calm this crisis down.
I hear the voice of my great granddaughter
Saying shut FERC down right now.”
Who would have thought it? On Friday morning, November 7th, for 2 ½ hours, the determined and courageous nonviolent activists of Beyond Extreme Energy shut down the DC headquarters of the Federal Energy Regulatory Commission, FERC.
All three entrances to the building were successfully blockaded, and virtually no one was getting in.
By 9 am there were about 150 FERC employees massed on the sidewalks in front of FERC, waiting for the police to clear away five fracking fighters who had successfully locked down at 7 am with lock boxes across the driveway into the FERC parking garage. The driveway had been the route used by police to funnel FERC employees into the building for the four days previous when BXE activists had successfully blockaded the two pedestrian entrances.
For short periods of time during those four days, no more than for maybe 20 minutes at a time, we had been able to prevent pedestrian use of that driveway (we prevented car use for the entire week). We did so by forming a long enough line of people to prevent anyone getting through, until the cops moved in and made arrests after their required three warnings. About 70 people were arrested over the course of the week.
But Friday morning was different. And because of the successful lock box action and total blockade, it was different in a way none of the BXE organizers had even thought about.
Friday was the day for additional fracktivists and extractivists from the severely fracked-up state of Pennsylvania to join BXE. So as those 150 FERC employees waited to get into the building, we organized a teach-in on the front sidewalk, right in the midst of the employees. For fifteen or twenty minutes people like Maggie Henry and Veronica Coptis spoke from the heart, shedding tears but fighting through them, to let the silent and listening FERC employees know the human toll that their support of the gas rush has caused. There were no catcalls, no boos, no one publicly questioning the truth of what was being said.
It was a very special moment.
We had been talking with and distributing material to FERC employees and others passing by all week. The leaflet we distributed to FERC employees said, in part:
“We apologize for any disruption to your work day, but that’s what we’re here for—to disrupt the workings of FERC, which continues to approve gas infrastructure projects that threaten the health and quality of life for millions of Americans and the whole planet through increased greenhouse gas emissions.
“Many of you work at FERC because you think it does a good job of balancing the needs of industry and economic development with the health and environmental challenges of impacted communities. But the Obama Administration’s ‘all of the above’ strategy is condemning us to runaway climate chaos while condemning families in fracking’s path to a hellish existence. FERC should be prioritizing the emergence of renewable energy as a growing sources of our electrical power.”
We found surprisingly little hostility from the close to 2,000 people we distributed our flyers to. We even found, to our surprise, indications of support from some of the Federal Protective Services and DC Metro police who were doing their best to keep FERC open despite our blockading. Going into the week, our lawyer had said to us that he expected that they would get more aggressive as the week went by, but that turned out, with a few exceptions, not to be the case.
(Exceptions included a couple of people tasered on Friday after we heard talk of it earlier in the week, several people falsely charged with “assault” for standing their nonviolent ground as part of a blockade and some police assistance to a small number of aggressive FERC employees who tried to push through us.)
Central to the success of this action were the sisters and brothers from the Great March for Climate Action who were there for all, or most, of the week. The decision to do this action during election week had a lot to do with the plan of the Great March to arrive in DC on November 1, ending on that day their eight month walk across the United States. Many of us not part of that march were impressed by the depth of commitment and soulful strength and organizing smarts they collectively brought to the November 1-7 week.
We received more than a little bit of criticism about our decision to do this week during election week, and we understood why. We were not doing this to make a statement about how messed up our electoral system is and that people should forget voting—not at all. In our call to action we said, right up at the top, “vote we must, but we must also do more.” If the Great March had not been arriving on November 1, we probably would have moved things back a week or two.
But as it turns out, it was very timely that Beyond Extreme Energy did happen during election week, during a week when the Republicans took back the Senate and Democrats generally did pretty badly—in large part because of the willingness of far too many, once again, to be Republicans-lite.
It is time, in 2015 and 2016, for many, many more of us to “vote” with our whole lives through massive, serious, strategic nonviolent direct action campaigns that are as coordinated as we can make them. Investors in the fossil fuel industry, Democrats and others who want our votes, members of the mass media and the American people generally need to get it that the climate justice movement, increasingly aligned with other movements for progressive social change, refuses to accept “all of the above” and “business as usual.” We know what time it is—there is little time left—and we are the leaders we have been waiting for. Now must be, has to be, our time to rise up in large numbers and with a spirit of love, a nonviolent discipline and a willingness to sacrifice that cannot be ignored.
Beyond Extreme Energy Week of Action in DC
Starting November 1st, hundreds of people are planning to take part in a very full week of climate action in Washington, D.C., focused on FERC, the Federal Energy Regulatory Commission. The week will also draw connections to other very problematic institutions as far as the global warming crisis.
Over 50 organizations have endorsed this week of action, many of them local groups fighting fracking, fracking infrastructure and proposed fracked-gas export terminals. On Friday, November 7th, the last day of the week, dozens of fracktivists from the fracking-ravaged state of Pennsylvania are traveling to DC to anchor that morning’s action at FERC.
The continuing fight against the Cove Point export terminal is a central reason for this week and a major focus of the Beyond Extreme Energy (BXE) demands, which can be found at http://bit.ly/BeyondExtremeEnergy; and in summary demand:
- A withdrawal of permits already granted by FERC at Cove Point, as well as at Myersville, Md., Minisink, NY and Seneca Lake, NY, as well as a stop to the permitting of any more fracked-gas infrastructure;
- That FERC prioritize the rights and health of human beings and all life on Earth over private profit, address climate chaos and adhere to the precautionary principle;
- That FERC commissioners meet with communities affected by already-approved or proposed fossil fuel infrastructure; and,
- That Congress convene an investigation into FERC’s rubber-stamping ways.
The heart of the BXE actions is five days of nonviolent sit-ins at the entrances to FERC every morning of the November 3-7 workweek. Over 100 people have signed up and indicated their willingness to risk arrest, with many others signed up to participate in other ways.
Saturday, November 1st: BXE participants join with the Great March for Climate Action as they walk the final leg of an eight month journey across the country which began in Los Angeles in March. Hundreds of us will walk from Elm Street Park just a few blocks from the Bethesda Metro stop, gathering at 9 and beginning at 9:30 am. The 7 mile walk will end at the White House where there will be a rally. Then that evening, at 7:00 pm at St. Stephens Church, there will be a longer program where marchers reflect upon their heroic experience.
Sunday, November 2nd: Full day of training, discussion and preparation for the week of action, at Impact Hub DC at 419 7th St. NW. from 10AM-8PM
In addition to the early morning actions at FERC, there will also be actions each afternoon at other locations.
Monday, November 3rd: Afternoon demonstration outside the headquarters of the Democratic National Committee calling upon them to get real about the seriousness of the climate crisis. This will be followed by a “flash mob” action at FERC and at Union Station spearheaded by fracktivists coming down from New York City. For the DNC action gather at the Columbus Statue outside of Union Station at 1:30/1:45 for a march to DNC. Look for the “flash mob” group around 4:15 at the same location.
Tuesday, November 4th: A bus has been reserved to take people to Cove Point for a demonstration in support of local people who continue to fight the plans by Dominion to build a dangerous export terminal. We plan to be in Solomon’s Island on Solomon’s Island Rd. near the long bridge by 2 pm.
Wednesday, November 5th: There will be an action at the Justice Department calling for them to intervene to see that justice is done in Ferguson, Mo. and that the national scourge of police brutality, especially against black and brown youth, is seriously addressed. We say: stop disrespecting and abusing the earth and its climate, stop disrespecting and abusing the people. We plan to be at the Justice Department, 950 Pennsylvania Ave. NW, between 9th and 10th Sts., by 2 PM.
Thursday, November 6th: We will demonstrate outside the headquarters of National Public Radio, which keeps running pro-fracking ads of the oil and gas industry and just cut back its team of environmental reporters to one! NPR is at 1111 N. Capitol St. NW, near L St.
Friday, November 7th: Led by fracktivists from Pennsylvania, we will go the Dept. of Transportation to demonstrate against its policies and practices that are allowing a dramatic expansion of coal, oil and gas shipments, including exports. We should be there around 1:30 pm, and DOT is at 1200 New Jersey Ave. SE, at M St.
Click here for full schedule.
There is still time to make plans to participate in this important seven days of climate action. You can find out more and sign up at http://bit.ly/BeyondExtremeEnergy. Let’s build upon the power and spirit of the People’s Climate March and say loudly and clearly that NOW IS THE TIME TO STEP IT UP ON CLIMATE!
Over 4,000 Petitions Delivered to Gov. O'Malley: NO Fracking in Maryland!
On Thursday, October 16, dozens of CCAN activists converged in Annapolis to deliver over 4,000 petitions to Governor O’Malley, urging him to keep our state’s moratorium on fracking in place.
We gathered on Lawyer’s mall, across from the State House to hear the words of Emily Blase, a student at the University of Maryland College Park working on fracking and climate issues, and Dr. Margaret Flowers, the Co-Director of PopularResistance.org, who spoke to the risks associated with fracking, the impacts it’s had on communities in Pennslyvania, and how people are coming together to further resist fracking and natural gas pipelines. Carrying signs that highlighted the communities in Maryland at risk of fracking, we marched into the State House to deliver our petitions to Gov. O’Malley’s administration.
This is a critical time to speak out. In 2011, Gov. O’Malley, took an important first step towards protecting Maryland from drilling: he established a three year commission to investigate how fracking would impact our health, economy, and safety, and said no drilling permits would be issued in Maryland in the meantime. State agencies are scheduled to complete these studies in the next few months, even though a lack of funding, resources and time has compromised them from the start.
As the clock runs out on the review process, Maryland could be left with no protections against fracking when Gov. O’Malley leaves office in January. So we went to the Capitol to remind Gov. O’Malley of the thousands of us that are informed and upset about the threat of fracking, and remind him of the millions across the state that fracking could negatively impact.
In July, the Maryland Department of the Environment released proposed Best Management Practices (BMPs) around fracked gas drilling that they predict, if enforced, would be able to adequately protect Marylanders from the risks involved with fracking–but we know better. The best practices are suggestions, not regulations. Furthermore, there is no guarantee that they will become regulatory requirements, or that these regulations would even be enforceable. For more on the flaws of the BMPs, read “No ‘best practices’ could guarantee Maryland’s safety if fracking is allowed,” a letter in the Baltimore Sun from members of the Governor’s own Marcellus Shale Advisory Commission.
With every passing week, new studies are released on the harmful impacts of fracking, in Maryland and across the country. In August, the O’Malley administration released a study, prepared by researchers at the University of Maryland, aimed at assessing the potential public health impacts of allowing fracking in Maryland. The findings were alarming, and you can read more about the report here.
In the coming months, CCAN will continue to educate our leaders on the dangers of fracking, and fight to keep fracking out of our state to protect the health and safety of all Marylanders.
Additional Resources
Read: Maryland Study shows that protecting our health requires keeping fracking out.
For more pictures from the action, click here.
Wading into Baltimore’s Rising Waters, Coalition Launches Campaign to Pass Nation-Leading Clean Energy Legislation
NAACP, Maryland Working Families, Baptist Reverend, health professionals and students join business and environmental leaders in calling on state lawmakers to double Maryland’s commitment to clean electricity in 2015
BALTIMORE – At a podium half-submerged in the Baltimore Harbor, public-interest leaders today launched a broad-based campaign aimed at doubling Maryland’s clean energy goals for wind and solar power in the 2015 legislative session.
Representatives from faith, health, social justice, student, business and environmental groups began Friday’s press conference standing up to their hips in water along Baltimore’s vulnerable harbor to dramatize the threat of sea-level rise. The leaders pointed to several recent climate change studies painting a flooded future for Maryland’s largest city and its capital city Annapolis. In response, the leaders underscored the urgency of transitioning Maryland off of planet-heating fossil fuels, and they declared their top energy priority in Annapolis in 2015 will be passing a 40 percent clean electricity standard.
Specifically, the legislation to be introduced would require utilities to obtain 40% of their electricity from clean sources by 2025, effectively doubling the existing requirement of 20% by 2022 under Maryland’s Renewable Portfolio Standard law. In addition to the exceptionally strong and diverse coalition assembled in-person on Friday, leaders shared a new letter signed by 21 prominent local, statewide and national groups endorsing the campaign and a recently published letter by Bishop Wolfgang Herz-Lane, President of the Ecumenical Leaders Group, endorsing the campaign.
“This fall, supported by the work of Interfaith Power & Light, Maryland’s religious communities have renewed our commitment to stewardship and care for all God’s creation,” said Reverend Darriel Harris of the Baltimore Food & Faith Project. “This morning, we challenge our leaders in Annapolis to do the same.”
The Ecumenical Leaders’ Group — representing seven denominations of Christian churches throughout Maryland — recently voted to endorse a 40% clean electricity standard for Maryland. In less than a month, forty religious leaders representing diverse faith traditions have signed onto their call.
Maryland’s official greenhouse gas reduction plan, released in 2013, identifies strengthening the state’s clean electricity standard as the most powerful single policy tool available to lawmakers. Polling released earlier this week indicates that 65 percent of Marylanders support doubling the state’s target to 40% by 2025.
“Poor communities and communities of color here in Maryland are suffering at the hands of the fossil fuel industry,” stated Gerald Stansbury, President of the Maryland State Conference of the NAACP. “2015 can be the year that Maryland takes the biggest step we’ve taken yet to right that wrong.”
Maryland still gets more than half of its energy from dirty coal and gas. In addition to threatening cities like Baltimore and Annapolis with rising sea levels and increased flooding, these fuels threaten Marylanders’ health, with the impacts disproportionately harming low-income communities and communities of color.
“By cutting our addiction to fossil fuels, we will not only be ensuring a safer — and drier — future, we will also be improving the health of every Maryland resident starting today,” said Dr. Gina Angiola, MD, a board member of Chesapeake Physicians for Social Responsibility. “Our state has the dubious distinction of being the worst in the Eastern U.S. for ground-level ozone pollution, and MIT recently found that Baltimore City has the highest rate of premature death in the nation due to air pollution. This isn’t a problem we can afford to ignore.”
Baltimore native Christine Keels, a lifelong asthma sufferer, emphasized that Baltimore residents suffer from this air pollution every day. “I carry a medical supply kit with me everywhere I go. As an asthma patient, I think about how dirty the air is every day when I wake up,” said Keels. “For once, I’d just like to drive with the windows down and take a deep breath.”
Business leaders emphasized that, by passing a nation-leading clean electricity standard, state lawmakers have an opportunity to establish Maryland as a regional hub for clean energy jobs and investment.
“Doubling our commitment to clean energy means more jobs for Maryland, including more public sector jobs, more manufacturing and constructions jobs,” added Charly Carter, Executive Director of Maryland Working Families. “That is a big win for workers and our communities.”
Bruce Chatman, CEO and President of Essex Renewable Power LLC, said, ”Doubling our commitment to clean energy in Maryland means more companies like mine, employing more Marylanders – from engineers to construction employees, from blade, battery and solar panel manufacturers to gearbox makers, from electricians to operators – working for Maryland-based small businesses building the new clean energy economy.”
The coalition declared that they will continue building bigger and broader support for doubling Maryland’s clean energy goals, and plan to bring a powerful statewide grassroots movement with them to Annapolis in 2015.
“Addressing climate disruption is a moral obligation, but more importantly it is an opportunity to build a brighter future for Maryland based on renewable, clean power,” said Josh Tulkin, State Director of the Sierra Club, Maryland Chapter, who spoke on behalf of the Maryland Climate Coalition. “Doubling our state’s commitment to renewable energy, to 40% by 2025, means progress not just on climate and public health, but also on jobs and economic leadership for Maryland. The Sierra Club is ready to do everything we can to pass this legislation in 2015.”
“Flooding that used to occur just a day or two a year has become increasingly common, more so in Baltimore and Annapolis than nearly anywhere in the country,” said Mike Tidwell, director of the Chesapeake Climate Action Network, and also a member of the Maryland Climate Coalition. “But just as the tides are rising, so is a grassroots movement demanding action. This movement will be sweeping Annapolis come January with one goal: doubling our state’s clean power supply.”
PHOTOS: https://www.flickr.com/photos/chesapeakeclimate/sets/72157648809030601/
RESOURCES:
- View the letter signed by 21 local, state and national groups in support of a 40% clean electricity standard for Maryland in 2015: http://marylandclimatecoalition.org/2015-campaign-endorsement-letter-2/
- View the recently published letter by Bishop Wolfgang Herz-Lane, president of the Ecumenical Leaders Group: http://www.baltimoresun.com/news/opinion/readersrespond/bs-ed-climate-letter-20140922,0,2857192.story
- View the polling showing Marylanders support doubling the state’s renewable energy standard: http://www.baltimoresun.com/features/green/blog/bal-marylanders-want-more-solar-wind-power-20141015-story.html
- Fact sheet – Double Maryland’s Clean Power by 2025: http://chesapeakeclimate.org/wp-content/uploads/2014/10/40-percent-RPS-fact-sheet-Oct-2014.pdf
Fact sheet – Economic Benefits of Doubling Maryland’s Clean Power: http://chesapeakeclimate.org/wp-content/uploads/2014/10/40-percent-RPS-jobs-fact-sheet-Oct-2014.pdf
CONTACT:
Mike Tidwell, 240-460-5838, mtidwell@chesapeakeclimate.org
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
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The mission of the Maryland Climate Coalition is to unite Marylanders to mitigate climate change to protect our environment, health, and economy.
In First Step of Legal Battle, Groups Challenge Cove Point LNG Export Project’s Federal Approval
Environmental and community advocates file legal papers in controversial project
WASHINGTON, D.C.—Environmental and community groups took the first step late yesterday in a likely legal battle against a controversial liquefied natural gas (LNG) export facility. On behalf of the Chesapeake Climate Action Network, Sierra Club, Lower Susquehanna Riverkeeper, Patuxent Riverkeeper, and Potomac Riverkeeper the environmental law organization Earthjustice filed a motion for rehearing (PDF) with the Federal Energy Regulatory Commission (FERC), demanding the agency withdraw its approval of an LNG export facility proposed at Cove Point in southern Maryland. The filing positions the groups to sue the agency to challenge FERC’s inadequate environmental review of the project.
Groups also filed a motion for a stay (PDF), urging FERC to halt further construction on the $3.8 billion project. The agency approved the project on September 29 over the objections of opponents who argued the massive facility, proposed by Dominion Resources, will spur air and water pollution from fracking across the mid-Atlantic region and, according to federal data, could contribute more to global warming over the next two decades than if the Asian countries importing the facility’s LNG exports burned regionally sourced coal.
In the days following FERC’s approval, Dominion moved quickly to begin construction on the project, ignoring FERC’s requirement that their construction and emergency plans be made available for community review before requesting to proceed. Additionally, despite public outcry over the potential for a catastrophic explosion at the facility, Dominion filed an updated emergency response plan with FERC but insisted on keeping all of the details of the plan secret from the public — claiming this information, along with other details of their project, is “proprietary.” In statements to the press, Dominion explained that it is planning on building a new evacuation route, but has yet to provide the details to FERC.
“In neglecting to prepare a thorough review of the environmental impacts of Dominion’s controversial project, FERC is prioritizing the desires of a powerful company over the health and safety of the people of Calvert County, Marylanders, and communities throughout the Marcellus shale region,” said Earthjustice Associate Attorney Jocelyn D’Ambrosio, who filed the legal papers on behalf of the coalition. “The public deserves far more from the people tasked with regulating the energy industry. We are demanding that FERC go back and do the necessary review of this project and order Dominion to halt construction in the meantime. If they refuse, they should prepare to defend their reasons in federal court.”
“FERC is once again acting like it’s above the law, effectively hitting the on-switch for Dominion’s bulldozers before groups were able to exercise their legal right to challenge a widely contested ruling,” said Mike Tidwell, director of the Chesapeake Climate Action Network. “Unless FERC hits the pause button on construction at Cove Point, Calvert County residents will face immediate and likely permanent damage to their environment and quality of life, all based on a fundamentally flawed review that could very well be overturned in the courts.”
“My neighbors and I are frankly appalled at the prospect of this project moving full speed ahead without a thorough review of the potentially catastrophic impacts to our community and environment. And the fact that Dominion is concealing its emergency response plan from the public only adds to our concerns and solidifies our belief that they are hiding the truth about the dangers of this project,” said Tracey Eno, a member of Calvert Citizens for a Healthy Community. “We’ve been blatantly ignored by most of our local, state and federal elected leaders. Now the people at FERC are acting as if we, the citizens of Lusby, are inconsequential and expendable. Our only hope could rest in the courts.”
“In its haste to accommodate Dominion’s sense of urgency, FERC simply ignored and failed to consider numerous impacts of this massive construction project to the environment, quality of life and safety of people and communities. We as citizens are not only entitled to raise questions, we are just as entitled to get answers,” said Patuxent Riverkeeper Fred Tutman. “From the outside, it appears as if FERC was plainly designed and predestined to approve this project regardless of its impacts or implications. Citizens are now asking for nothing more than what we were entitled to in the first place: a fair hearing and due consideration of our claims and concerns.”
“FERC cannot allow this project to proceed until FERC addresses fundamental flaws in FERC’s analysis,” said Sierra Club Staff Attorney Nathan Matthews. “Most importantly, the agency failed to consider the simple fact that exporting LNG will mean more drilling and fracking, putting residents of the Marcellus and others at risk of air pollution, contaminated groundwater, and increased climate pollution.”
BACKGROUND:
The Dominion Cove Point project would take gas from fracking wells across Appalachia and liquefy it along the shore of the Chesapeake Bay for export to Asia. The project would be the first LNG export facility built so close to so many homes, the first built in close proximity to Marcellus Shale fracking operations, and a potential trigger of more global warming pollution than all seven of Maryland’s existing coal-fired power plants combined. In spite of this, FERC’s highly limited Environmental Assessment omitted credible analysis of the project’s lifecycle global warming pollution, potentially catastrophic threat to hundreds of nearby residents, pollution of the Chesapeake Bay and risk to the critically endangered North Atlantic right whale, along with all the pollution associated with driving demand for upstream fracking and fracked gas infrastructure.
Dominion’s project has faced and will continue to face significant and widespread grassroots opposition. A coalition of state, national and community groups opposing the project submitted more than 150,000 comments to FERC by the June public comment deadline. In mid-July, more than 1,000 people marched on FERC’s Washington, D.C. headquarters calling on the agency to halt approvals of all LNG export projects, including the Dominion Cove Point facility.
CONTACT:
Kelly Trout, 240-396-2022, kelly@chesapeakeclimate.org
Diana Dascalu-Joffe, 240-396-1984, diana@chesapeakeclimate.org
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RESOURCES:
Motion for rehearing filed by groups: http://earthjustice.org/sites/default/files/files/Request_for_Rehearing.pdf
Motion for a stay filed by groups: http://earthjustice.org/sites/default/files/files/FERC_stay.pdf