Home Care In Perryman, MD

Lawmakers created the accelerated process this spring, amid high energy bills

Constellation Energy’s proposals for a new natural gas power plant in Maryland can go through an expedited permitting process, after they received an initial green light from the Maryland Public Service Commission on Tuesday.

State lawmakers created the fast-track permitting process in the spring, in response to soaring energy bills, spurred in part by a lack of energy supply in the multistate electric grid that includes Maryland.

In response, Constellation submitted two possible proposals for a new natural gas power plant in the state — a larger and a smaller option. Both would be located in Harford County, near the existing Perryman power plant, which runs on oil and natural gas.

In a news release from November, Constellation said the proposals were meant to offer Maryland policymakers a “menu of options” for new power generation in the state. Constellation CEO Joe Dominguez said in the release that the company hopes to be a “thought partner” for state leaders as they decide the path forward.

“While there is a good deal of consensus on the need for battery storage, the future of natural gas in our state is less clear.” Dominguez said in the news release. “We believe that natural gas generation should be an option, but there are pros and cons to consider and, quite naturally, we do not want to build what our state does not want.”

During remarks at a Maryland Chamber of Commerce forum in November, Dominguez said that running pipelines to provide natural gas to the Perryman site could cost around $800 million, and said the company would likely need some form of state help to move forward with the costly plan.

Tuesday’s PSC decision does not mean that either of Constellation’s new proposals will necessarily be built, only that they can go through the fast-track. Under the law, which took effect June 1, the commission has 295 days after the application is considered complete to make a final permit decision.

If constructed, though, a new natural gas plant would likely place many of Maryland’s climate emissions and clean energy aspirations out of reach. After talk of a new gas plant began circulating in the last legislative session, environmentalists pushed back hard, a fight that they expect to continue in the legislative session that begins Jan. 14. They also filed petitions directly to the commission opposing the Constellation gas proposals, and supporting battery storage.

In Tuesday’s order, PSC Executive Secretary Andrew S. Johnston wrote that the commission “is cognizant of and shares these concerns” regarding new fossil fuel-powered generation in Maryland. “However, the General Assembly has made a policy decision to expedite new generation construction, including natural gas-fired power plants under this process,” Johnston wrote.

Johnston added that environmental groups will have the opportunity to “raise concerns related to emissions and environmental justice” during the upcoming permitting process.

Constellation also submitted a proposal for an 800-gigawatt battery energy storage project for expedited review, but the PSC denied it, saying it did not meet all of the qualifications set by the legislature. Lawmakers set up the fast-track for so-called “dispatchable” energy generation, which is easy to deploy during times of peak demand.

The battery proposal, proposed for several spots on the Perryman site, fell just below a reliability threshold set by lawmakers, according to the commission, which denied the project “despite the other good characteristics” it possessed. Lawmakers did, however, create a separate approval process for battery storage projects in the legislation they passed this year.

Two other companies submitted fast-track proposals, but both were withdrawn before the commission issued its decision.

One proposal would have upgraded an existing natural gas power plant in Prince George’s County’s Brandywine, and the other was entirely confidential, much to the chagrin of environmental groups. The Brandywine proposal also received blowback, from local activists who argued that the area is already overburdened by power plants and industrial facilities.

In a news release issued earlier this month, a group of Perryman residents and members of the community group 3P Protect Perryman Peninsula expressed concerns about a possible new gas plant in their community. They also pushed for the PSC to take more time to review the energy proposals before deciding which could move through the fast-track.

“They’re asking regulators to move first and ask questions later,” said Stacy Stone, a lifelong Perryman resident who lives near the proposed site and serves on the Harford County Democratic Central Committee. “Maryland strengthened its environmental justice laws because communities like ours were harmed when decisions were rushed. Those protections don’t work if they’re treated as an afterthought.”

But the commission denied a request for a 60-day extension, originally filed by several other environmental groups: the Maryland League of Conservation Voters, Clean Water Action, Earthjustice and the Maryland chapter of the Sierra Club.

In the order, Johnston wrote that the “short timeline” reflects “the General Assembly’s urgency in responding to the lack of new generation in Maryland.”

“The General Assembly understood that the timeline it proposed would limit stakeholder participation in the initial review of proposals,” Johnston added.

Utilities regulators agreed Tuesday to fast-track reviews of two proposed Constellation Energy natural gas plants as Maryland aims to bolster its power supply.

In a 14-page order, the state Public Service Commission approved the Baltimore-based Constellation’s request for expedited consideration of more than 700 megawatts in new natural gas capacity. While not granting final approval, the order could enable Constellation to speed through, in 10 months or less, a vetting process that typically takes up to two years.

The decision marks an early step in a new process that is central to Democratic leadership’s energy platform. That platform is outlined in a law passed earlier this year that aims to boost the state’s electricity generation. Maryland has long imported much of its electricity from out of state, but as new pressures hit the regional grid and utility bills soar, leaders have looked for ways to take more ownership of the power supply.

The legislation helps grease the skids for new natural gas plants, a prospect that has frustrated environmental advocates and would make the state’s already dimming climate aspirations even harder to achieve.

According to the Public Service Commission order, the proposed Constellation plants would increase Maryland’s natural gas capacity by 14%.

Constellation’s application, submitted to regulators this fall, outlines plans for two new natural-gas-fired power plants, one capable of generating up to 150 megawatts of electricity and another generating up to 564 megawatts.

The commission rejected Constellation’s bid for expedited consideration of up to 800 megawatts of battery storage in the same area, unless the company submits revised plans for the project within 60 days.

If regulators approve its application, Constellation intends to build in the Perryman area of Harford County, the company’s CEO, Joe Dominguez, told reporters at a November policy summit. Constellation has large landholdings there and several fossil-fuel-powered generators at its Perryman Generating Station.

The proposal has prompted concern from residents, who worry that the fast-tracked process will leave them without a say.

“This is about what we breathe, what we hear, and what happens right outside our homes,” Ron Stuchinski, a U.S. Postal Service letter carrier who lives near Constellation’s proposed site, said in a statement last week. “Calling this a ‘procedural’ decision doesn’t change the fact that once something is fast-tracked, the community is already behind the curve.”

Stuchinski is part of the group 3P Protect Perryman Peninsula, which has submitted its concerns about the Constellation plan to the Public Service Commission.

In their order, the commissioners acknowledge potential consequences of the fast-track process for frontline communities but indicate that these side effects are out of the commission’s hands because of the new law.

The Next Generation Energy Act, the Democratic energy package passed last legislative session, established a fast-track process for up to 10 projects but said that if fewer developers apply, the Public Service Commission should grant expedited consideration for all applicants.

A spokesperson for Constellation did not immediately comment on the commission’s order.

In a November release announcing the proposal, Dominguez acknowledged polarized sentiment over new natural gas generation. But he said Constellation believes natural gas should be part of the state’s solution, and the company’s willing to invest in it if Maryland leaders agree.

The Public Service Commission’s consideration of the fast-track applications comes ahead of a legislative session where Maryland lawmakers are again expected to debate the state’s energy challenges.

A rival to Constellation, the Chicago-based Exelon, has encouraged lawmakers to pass legislation that would allow the company to build a new gas plant in Maryland and charge local ratepayers for the build-out.

The now-fast-tracked Constellation plan could come at its own cost to Marylanders.

Construction of new natural gas pipelines to connect plants in Perryman would cost around $800 million, Dominguez told lawmakers at the November policy summit — an investment he expects his company would not cover on its own.

“We will need some help with that,” Dominguez told lawmakers at the summit.

Some climate groups have argued that this new process means energy developments will not get sufficient vetting.

A coalition of climate groups, including the Perryman group, the Maryland League of Conservation Voters, the Sierra Club, Clean Water Action and the law firm Earthjustice, appealed to the Public Service Commission earlier this month for more time to weigh in.

The commission denied the requested extension Tuesday and noted that the public would have time to comment as regulators consider permits for these power plants.

Even with the fast-track approval, Constellation still must formally apply for permits.

Adam Willis reports on climate and the environment across Maryland for The Baltimore Banner. He previously covered Baltimore City Hall for The Banner.