Reforming the Public Service Commission

Today at noon is the State of the State address, in which Governor Hogan will come before the General Assembly—and the public—to discuss his priorities.  The speech should be available on the Governor's website and Maryland Public Television, as well as being covered by the local news.

Like many of you, I have been frustrated with the slow pace of snow removal.  It was bad enough that many neighborhood streets were not plowed until the Wednesday after the storm, but some highways are still missing a lane of traffic this week.  I have joined with several colleagues in reaching out to the State Highway Administration about these issues.

Legislative News

I am a big believer in the need to reform our state agencies for the 21st century.  Last week, I introduced legislation to reform the Board of Public Works and the Public Service Commission.  I will talk about the Board of Public Works bill in a future email, but here is further information on the Public Service Commission ("PSC") Reform Act (you can also read the bill here).

The PSC is the state regulator of utilities, such as Pepco.  Many District 16 residents have little faith that the PSC is doing what it is supposed to do in looking out for the public interest (in full fairness, Pepco performed well during the blizzard compared to past storms).  I believe the PSC can be strengthened and improved and here are the proposals I have set forth to achieve that goal.

• Commissioner Staffing: Currently, the five commissioners have a small shared staff.  I propose that we shift to Commissioner-specific staff.  This is particularly important for matters in which the professional Commission staff is a party before the Commission and is, therefore, unable to provide candid counsel or assistance to the Commissioners.  A Commissioner staffing model is common in regulatory agencies, including in numerous other states' PSCs and will ensure Commissioners have the resources necessary to address important regulatory issues.
• Geographic Diversity: Currently, there are only vague geographic diversity requirements for Commissioners.  Requiring geographic diversity will ensure that the interests represented on the Commission are sufficiently broad and that Commissioners have experience with different public service companies around the state.
• Political Diversity: There is no requirement for political party diversity on the PSC.  Limiting the members who can come from a single political party ensures that no single ideology can fully dominate the Commission and a diversity of viewpoints and opinions are considered. Other boards in Maryland and several other states' PSCs all require political party balance.
• Strengthened Ethics Requirements: Commissioners are supposed to serve the best interest of the public. The bill prohibits appointment to the Commission of individuals who have, in the year preceding the appointment, represented any party before the Commission or have received any private financial benefit from any party subject to the Commission’s jurisdiction.  This is similar to an existing rule for Commissioners after they depart the PSC.
• Customer Service: The Commission is not adequately focused on customer service and consumer protection.  The bill would rename the “Office of External Relations” to the “Division of Customer Complaints and Affairs” and increase its staff.  The bill would also add the PSC to the state's new customer service training program.  In addition, the bill would require customer service meetings be held in different regions of the state.
• Functions: In order to ensure the PSC is focused on 21st century regulation, the bill requires the Department of Legislative Services to study and report on potentially outdated PSC functions and responsibilities.
• Cost: The bill would be paid for in the same manner as other PSC operations, through the fee on public service companies.

The bill will be the subject of a hearing on February 11th.

Administration News

The Administration has requested sixteen bills be introduced for consideration by the General Assembly.  Below are brief summaries and links to further information.

HB 449-Capping Maryland legislative budget formulas.
HB 450-Establishing tax benefits for manufacturing in certain empowerment zones.
HB 451-Dedicating funds to the Maryland State Arts Council.
HB 452-Increasing the earned income tax credit.
HB 453-Allowing tax credits for private school tuition.
HB 454-Altering merit pay increases for certain state workers.
HB 455-Providing income tax benefits for seniors.
HB 456-Revising the state's prescription drug monitoring program.
HB 457-Reducing business filing fees.
HB 458-Establishing a commission to draw legislative lines.
HB 459-Reducing certain licensing fees.
HB 460-Altering homeowners' assistance programs.
HB 461-Altering penalties for gang activities.
HB 462-Placing transfer taxes in a special fund.
HB 464-Supporting state programs for dual high school and associate degrees.


Community News

• The Montgomery County Council will be holding a public hearing on the Westbard Sector Plan on Thursday, February 5 at 7:30pm at the Council office building in Rockville.  You can read more about the plan here.
• Save the Date for the District 16 Democratic Club debate for 8th Congressional District Democratic Primary candidates at Walt Whitman High School.  The event will be held on Sunday, February 28 from 3pm to 5pm.  
• On March 5 and 6, Walter Johnson High School is holding a used book sale.
• On March 12 and 13, BCC High School is holding its annual used book sale.  As a personal aside, I have been to this book sale in the past and found many great items.

If you know of an upcoming community event, please email marc@marckorman.com.

​District 16 Notes

• Serving on the Appropriations Subcommittee on Education and Economic Development gives me the opportunity to focus on both the funding and policy of our institutions of higher education.  Our flagship four year institution is the University of Maryland at College Park.  College Park recently shared some interesting statistics with me that I wanted to pass along. 1,094 College Park students are residents of District 16 and 1,656 District 16 residents have children at College Park. 341 College Park employees are District 16 residents.  The District has 8,356 College Park alumni.
• Congratulations to District 16's Karen Judson on her elevation to chair of the County's Grants Advisory Group.
• Congratulations to District 16 resident—and my successor on the Bethesda Urban Partnership Board of Directors—Jonathan Sachs on being promoted to Executive Director of Urgent Care Operations & Government Relations at Adventist Healthcare, Inc.
• Thank you to Richard Hoye for helping to clear snow after the blizzard.  There was a nice write-up in Bethesda Beat.

If you know of a District 16 resident who merits recognition or condolences, please email marc@marckorman.com.