Maryland PSC Orders Exelon to Show Cause Over "Inadvertent" Violation of Market Power Mitigation

The Maryland PSC has ordered Exelon to show cause why the Commission should not conclude that Exelon violated the terms of the PSC's order approving its merger with Constellation after Exelon reported that it "inadvertently violated" (as the PSC described Exelon's characterization) market power mitigation commitments contained in the order.

Specifically, the PSC said that, "on April 5, 2012, counsel for Exelon informed the Commission that, due to computer software problems, Exelon inadvertently violated its market power mitigation commitments by bidding energy and/or capacity from certain generating units above cost, in contravention of the conditions of Order No. 84698, thereby earning revenue in excess of that authorized under the Commission’s Order. Exelon indicated this occurred for a two-week period before they discovered the inadvertent error and corrected and reported it."

The PSC ordered Exelon to submit a filing by April 23 explaining the events that transpired relating to the error, and why the Commission should not conclude that Exelon violated the terms of Order No. 84698.

Exelon's filing shall contain a plan for remedying any harm done to Maryland ratepayers as well as a demonstration of how it will avoid violations of market power mitigation commitments in the future, the PSC said.

Exelon was directed to appear before the Commission on May 9.