The Perfect Storm
The events leading up to the 72% increase in customer's rates has been referred to by BGE executives, state commissioners, and state legislators as "the perfect storm". In the years since rates were capped, fuel prices had risen dramatically. Natural gas prices had risen about 125%, regular gasoline prices had risen over 150%, and heating oil prices had risen almost 200%. Maryland region’s fuel prices are tied greatly to natural gas prices. Subsequently, when Hurricane Katrina and Rita caused major natural gas pipelines to shut down for a short period, natural gas prices skyrocketed. Therefore, when BGE went to the market to procure power, prices for power were abnormally high.
Read more about this topic: Maryland Electric Deregulation
Famous quotes containing the words perfect and/or storm:
“Good as is discourse, silence is better, and shames it. The length of the discourse indicates the distance of thought betwixt the speaker and the hearer. If they were at a perfect understanding in any part, no words would be necessary thereon. If at one in all parts, no words would be suffered.”
—Ralph Waldo Emerson (1803–1882)
“The victors and the vanquished then the storm it tossed and tore,
As hard they strove, those worn-out men, upon that surly shore;
Dead Nelson and his half-dead crew, his foes from near and far,
Were rolled together on the deep that night at Trafalgar!”
—Thomas Hardy (1840–1928)