THIS PROGRAM IS MADE BY MPT TO ENRICH THE DIVERSE COMMUNITIES THROUGHOUT OUR STATE AND IS MADE POSSIBLE BY THE GENEROUS SUPPORT OF OUR MEMBERS.

THANK YOU.

[♪♪] >> Jeff: A PENNY SAVE SECOND A PROBLEM FOR MANY STORES.

>> THE BUSINESSES HERE IN THE STATE OF MARYLAND NEED GAPS AS TO WHAT THEY ARE SUPPOSED TO DO NOW.

>> Jeff: THIS CONNECTING CELLPHONES DURING THE SCHOOL DAY.

>> IF THERE IS AN EMERGENCY IN SCHOOL I THINK WE SHOULD BE ALLOWED TO HAVE THEM.

>> THE TEACHER WATCHED PERFORMANCE DECLINE WITH THE CELLPHONES.

>> Jeff: AND ARE CREDIT CHECKS FOR TENANTEDS FAIR?

>> UNFORTUNATELY LANDLORDS FOUND A WAY AROUND IT.

>> Announcer: CONNECTING MARYLANDERS TO THEIR GOVERNMENT, THIS IS "STATE CIRCLE".

>> Jeff: GRAND JURY.

THE BIG STORY AROUND "STATE CIRCLE" THIS WEEK IS TWO YEARS.

THAT IS HOW LONG IT'S BEEN SINCE THE SHIPPING ACCIDENT THAT BROUGHT DOWN THE FRANK SESNO -- KEY BRIDGE.

STATE AND LOCAL LEADERS GATHERED NEAR THE SITE AND HONORED THE MEMORY OF THE SIX WORKERS KILLED.

NEARBY, DEMOLITION WORK CONTINUED ON THE OLD SPAN.

GOVERNOR MOORE PROMISED THE NEW BRIDGE WOULD BE OPEN BEFORE THE END OF THIS POTENTIAL SECOND TERM.

>> WE REMAIN COMMITTED TO REBUILDING THE FRANCIS SCOTT KEY BRIDGE WITH SPEED AND SAFETY.

>> Jeff: LEGAL CLAIMS AGAINST THE OWNERS OF THE SHIP ARE PENDING IN FEDERAL COURT.

>>> TO THE LEGISLATURE WHERE THE HOUSE OF DELEGATES THIS WEEK APPROVED ITS VERSION OF THE STATE BUDGET.

DELEGATES TURNED BACK REPUBLICAN CALLS FOR A GAS TAX HOLIDAY AND A REPEAL OF THE UNDERPERFORMING NEW TECH TAX.

THE NEW BUDGET IS BALANCED WITH A MIX OF CUTS AND FUND TRANSFERS.

THE CUTS TO PLANNED SPENDING FOR MARYLANDERS WITH DEVELOPMENTAL DISABILITIES AGAIN BROUGHT DEMONSTRATORS TO THE STATE HOUSE.

AN INCREASE IN FAMILIES CHOOSING SELF MANAGED CARE HAS BEEN DRIVING AN UNSUSTAINABLE INCREASE IN SPENDING.

ADVOCATES SAY THE FUNDING ALLOWS PEOPLE WITH DISABILITIES TO LIVE SAFELY IN THEIR COMMUNITIES.

FROM HOW TO DEAL WITH THE $70 BILLION BUDGET TO HOW TO DEAL WITH A FEW PENNIES.

PENNIES AREN'T BEING MADE SO LAWMAKERS ARE CONSIDERED EMERGENCY LEGISLATION TO GUIDE BUSINESSES WHICH DO NOT WANT TO BE PENNY WISE AND POUND FOOLISH.

HERE IS SUE COPPIN.

>> THE PENNY HAS BEEN PART OF THE AMERICA'S MONEY SYSTEM FOR 230 YEARS BUT THAT CHANGED IN FEBRUARY OF LAST YEAR WHEN THE PRESIDENT ORDERED AN END TO ITS PRODUCTION THE ONE THAT COIN COSTS THREE-AND-A-HALF CENTS TO MAKE.

THE LAST NEW PENNIES ROLLED OFF LAST NOVEMBER BUT NO GUIDANCE TO STATES FROM THE FEDERAL AND HOW TO PROCEED.

>> I HAD SEEN A NEWS STORY ABOUT THE ISSUES WITH THE PHASE OUT OF THE PENNIES BEFORE SESSION STARTED.

AND I KNEW WHAT PROBLEMS IT WAS CAUSING ON RETAILORS THROUGHOUT THE COUNTRY.

AND THEN I WAS CONTACTED BY THE MARYLAND RETAILORS AND ASKED IF I WOULD CONSIDER SPONSORING A BILL TO ADDRESS THE ISSUE.

>> ANNE ARUNDEL SENATOR IS THE SPONSOR OF THE SENATE VERSION OF THE EMERGENCY BILL.

WHY AN EMERGENCY BILL?

>> AS WE KNOW THE FEDERAL GOVERNMENT STOPPING MAKING THEM, THE FEDERAL RESERVE IS GIVING OUT THE LAST OF THE PENNIES.

THE BUSINESSES HERE IN THE STATE OF MARYLAND NEED GUIDANCE AS TO WHAT THEY ARE SUPPOSEDDED TO NOW.

>> IT BECAME CLEAR FROM OUR MEMBERS THERE NEEDED TO BE SOMETHING TO PROTECT THEM.

AND THE REASON IS WHEN YOU ROUNDUP OR DOWN, THERE CAN BE THE APPLICATION THE CONSUMER PROTECTION TITLE AGAINST A BUSINESS, FOR NOT PROVIDING A CONSUMER EXACT CHANGE BACK.

>> SO HOW WILL IT WORK?

>> THIS PENNY ROUNDING PROCEDURE IS IMPLEMENTED AFTER TAX, AFTER DISCOUNTS, SO WHAT THE FINAL AMOUNT IS AFTER THAT, AND THEN WE DO THE ROUNDING TO THE NEAREST NICKEL.

>> IF THAT TRANSACTION ENDS IN ONE OR TWO, YOU ARE GOING TO ROUND DOWN.

THREE OR FOUR, YOU ROUNDUP.

TO THE NEAREST FIVE CENT OR ZERO.

ONE OR TWO ROUND DOWN TO ZERO.

THREE OR FOUR WOULD ROUNDUP TO FIVE.

SIX OR SEVEN ROUNDS TO 58 OR 9 ROUNDS UP TO THE ZERO AGAIN.

>> THE BEST APPROACH FOR CONSUMERS AND BUSINESSES.

>> THIS IS REALLY A WAY TO PROTECT BUSINESSES.

SO THEY WON'T GET IN TROUBLE WITH EXISTING CONSUMER PROTECTION OR DECEPTIVE TRADE PRACTICES WE DO HAVE ON THE BOOKS AS IT IS NOW.

THIS GIVES THEM SOME FLEXIBILITY AND LEGAL PROTECTION.

BUT IT'S ALSO A FAIRWAY WITH THE CONSUMER THAT ULTIMATELY IT WORKS OUT OVER TIME.

>> AT POTATO VALLEY A SMALL RESTAURANT THAT OPERATED FOR THREE DECADES, THE OWNER SAID THEY HAVE A LONGTIME SYSTEM WHERE THE PENNY IS NOT A FACTOR BUT ROUNDING UP OR DOWN IS.

>> WE HAVE NOT BEEN RELIANT ON THE PENNY GENERALLY AND THE REASON IS BECAUSE IT TAKES MORE TIME TO COUNT OUT FOUR PENNIES THAN IT DOES A NICKEL.

IF A PERSON IS PAYING CASH, OBVIOUSLY THE MERCHANT IS NOT PAYING THE CREDIT CARD FEE.

SO WE ALWAYS ESTIMATE DOWN.

>> BUT, SHE ALSO SAYS, THERE IS SOMETHING ABOUT THE PENNY.

PART OF OUR SOCIETY AND THEN WE'RE -- WHENEVER YOU CHIP AWAY AT CULTURAL STUFF PEOPLE FEEL IT A LITTLE BIT.

>> THERE'S SOMETHING NOSTALGIC ABOUT THE PENNY, PENNY LOAFERS OR BUYING GUM WITH A PENNY.

BUT IT'S MAKES ECONOMIC SENSE.

>> I'M SUE COPPIN FOR "STATE CIRCLE".

>> Jeff: LAWMAKERS ARE LOOKING AT NEW LIMITS ON CREDIT CHECKS FOR RENTERS.

MICHAELA NEWTON HAS THAT STORY.

>> A DEBATE HOW MUCH A CREDIT SCORE, CAN STOP LANDLORDS FOR USING PAST FINANCIAL STRUGGLES FROM GETTING ASSISTANCE FROM THE GOVERNMENT.

>> THE HOME ACT WAS A WONDERFUL PIECE OF LEGISLATION WHEN WE PASSED IT.

UNFORTUNATELY, LAND LORDS HAVE FOUND A WAY AROUND IT.

>> FOR MANY A HOUSING VOUCHER IS A GOLDEN TICKET TO A BETTER LIFE.

BUT A POOR CREDIT SCORE CAN ACT AS A BACK DOOR FOR DISCRIMINATION.

LAWMAKERS ARE CONSIDERING A BILL THAT WERE BAR LANDLORDS FROM WEIGHING CREDIT SCORES DURING THE SCREENING PROCESS FOR CERTAIN VOUCHER HOLDERS.

>> WHAT LANDLORDS WERE DOING IS SAYING OKAY, WELL, I CAN'T DISCRIMINATE AGAINST YOU BECAUSE YOU HAVE A VOUCHER BUT I'M GOING TO REQUIRE THAT YOU HAVE 2.5 TIMES THE INCOME REQUIRED FOR THIS RENT.

SOMETHING THAT THEY MIGHT PUT ON ANOTHER TENANT SOMEONE WHO DIDN'T HAVE A VOUCHER.

AND OBVIOUSLY IF YOU HAVE A VOUCHER YOU ARE NOT GOING TO HAVE THAT KIND OF INCOME.

>> NOT EVERYONE IS ONBOARD.

OPPONENTS ARGUE THAT CREDIT SCORES ARE A LAYER OF PROTECTION WHEN CHOOSING A TEN NANT.

THE CURRENT VERSION OF THE BILL ALLOWS LANDLORDS TO CONSIDER A PERSON'S CREDIT SCORE FROM THE TIME THEY BEGIN HOLDING THEIR HOUSING VOUCHER.

>> THEY WERE NEVER MEANT FOR RENT.

IT WAS REALLY FOR LOANS AND REPAYMENT.

BUT THEY ARE OBJECTIVE, EVERYONE HAS THEM, EVERYONE IS SCORED AGAINST THE SAME THING.

SIMILAR TO A STANDARDIZED SAT SCORE.

THEIR OBJECTIVE EVERYONE HAS THEM.

THEY ARE CHEAP AND EASY FOR A LANDLORD TO GET.

SO IT IS A TOOL, BUT IT'S ONE THAT MAYBE OVERRELIED ON BECAUSE IT'S EASY, BECAUSE IT'S CHEAP.

IF THIS LEGISLATION WERE TO THEN EXPAND OUTSIDE OF JUST THE VOUCHER PROGRAM, THEN YOU PUT A LOT OF LANDLORDS IN THE POSITION OF OKAY, WE CAN'T USE THIS TOOL THAT WE'VE USED THAT WAS CHEAP AND EASY AND OBJECTIVE.

WE'RE NOW GOING TO RELY ON OTHER TOOLS.

>> IF PASSED, THE MARYLAND COMMISSION ON CIVIL RIGHTS WOULD THEN HAVE THE POWER TO REVIEW SCREENINGS FOR DISCRIMINATION.

>> THE WAY I LOOK AT IT THIS IS FULFILLING THE PROMISE OF LEGISLATION WE HAD IN 2020 THAT PEOPLE HAVE FOUND A WAY AROUND.

>> THE HOUSE AND SENATE HAVE BOTH ADVANCED THE BILL BUT THEY MUST RECONCILE DIFFERENT VERGES BEFORE IT REACHES THE GOVERNOR'S DESK.

>> Jeff: BOTH THE HOUSE AND SENATE HAVE ADVANCED BILLS TO MAKE KIDS PUT AWAY THEIR CELLPHONES IN SCHOOL.

NANCY YAMADA TELLS US MORE.

>> WE'RE NOT ALLOWED TO HAVE THEM.

>> WE ARE NOT ALLOWED TO HAVE IT AT ALL.

IT'S SUPPOSED TO BE IN OUR LOCKER.

>> YOU CAN'T BRING THEM TO CLASS, LUNCH, RECESS.

>> THE POLICY IN FREDERICK COUNTY FOR MIDDLE SCHOOLERS.

>> I THINK IT'S TOO MUCH.

BECAUSE IF THERE IS EVER AN EMERGENCY IN SCHOOL, I THINK THAT WE SHOULD BE ALLOWED TO HAVE THEM TO TEXT OUR PARENTS OR CALL THEM.

>> DO PEOPLE SNEAK THEM OUT?

>> ABSOLUTELY.

BECAUSE THEIR PARENTS ARE WORRIED IF THERE IS AN EMERGENCY THAT THEY NEED TO HAVE THEIR PHONE.

>> POT THE SENATE AND THE HOUSE MOVED BILLS RESTRICTING CELLPHONE USE IN MARYLAND PUBLIC SCHOOLS BEGINNING THE 2027 SCHOOL YEAR.

>> IF YOU WALK INTO ANY SCHOOL YOU WILL SEE STUDENTS WITH THEIR HEADS DOWN AND EDUCATORS NOT BEING PAID ATTENTION TO AND SOCIAL MEDIA AS WE FOUND OUT TWO DAYS AGO IS CAUSING A LOT OF HARM IN PEOPLE'S LIVES WE ARE DOING OUR PART IN MARYLAND TO PROTECT WHAT IS OUR MOST VULNERABLE ASSET, OUR CHILDREN.

>> HIS BILL WOULD REQUIRE EVERY LOCAL SCHOOL BOARD TO CRAFT A POLICY INCLUDING DISCIPLINARY MEASURES FOR THOSE WHO VIOLATE THE POLICY.

THE POLICIES CAN DIFFER BETWEEN DISTRICTS FIVMENT YOU WANT TO HAVE POUCHES.

IN PRINCE GEORGE'S COUNTY AND YOU WANT IT MAKE SURE THEY KEEP THEM IN THE LOCKERS YOU CAN HAVE THAT POLICY.

THE LAW FOLLOWS A BLUEPRINT WE LAID OUT SAYING THERE HAS TO BE A POLICY ON THE BOOKS AND MAKE SURE THAT STUDENTS NEED THEIR PHONES HAVE EXEMPTIONS AS WELL.

>> TWO YEARS AFTER RESTRICTIONS ON CELLPHONES.

>> THE TEACHERS ARE REALLY HAPPY ESPECIALLY MY HIGH SCHOOL TEACHERS.

>> THE HARTFORD COUNTY ASSISTANT SUPERINTENDENT FOR EDUCATION SERVICES SAYS KEEPING PHONES AWAY FROM KIDS DURING THE SCHOOL DAY IS PAYING OFF.

>> I FEEL LIKE THE TEACHERS CAN TEACH AND KIDS CAN LEARN WHEN THE DISTRACTIONS AREN'T BROUGHT INTO THE ROOM.

IT WAS SO WORTH IT.

AND IT ISN'T PERFECT AND IT'S MESSY.

BUT THE PHONE CALLS STOPPED OF PARENTS WHO WEREN'T IN SUPPORT OF IT.

>> OUTSIDE OF FREDERICK COUNTY MIDDLE SCHOOL PARENTS HAVE MIXED OPINIONS.

>> I'M 50/50 ON IT THERE ARE TIMES WHEN KIDS NEED TO HAVE IT.

EMERGENCIES, US BEING ABLE TO GET AHOLD ESPECIALLY IF THE SCHOOL IS NOT COMMUNICATING AND OTHER TIMES NO H. THEY ARE IN SCHOOL AND NEED TO BE FOCUSED ON THAT.

>> I LOVE IT.

I THINK IT'S NECESSARY FOR THE KIDS.

THEY ARE SO DISTRACTED WITH THEIR PHONES AND AS A TEACHER I'VE WATCHED PERFORMANCE DECLINE WITH THE CELLPHONES.

>> I'M NANCY YAMADA FOR "STATE CIRCLE".

[♪♪] >> Jeff: NOW, FOR THE POLITICAL ROUNDTABLE WE ARE JOINED BY MENNATALLA IBRAHIM OF THE BALTIMORE SUN A PRODUCTIVE, I THINK I COUNTED FOR BY-LINES IN THE LAST 48 HOURS.

APPRECIATIVE THAT YOU COULD FIND TIME TO TALK TO US.

>> OF COURSE THANK YOU FOR HAVING ME, JEFF, I APPRECIATE IT.

>> Jeff: GLAD TO HAVE YOU.

THE HOUSE OF DELEGATES PASSED A BUDGET AND THE SENATE PASSED THE BUDGET LAST WEEK, WHAT HAPPENED NEXT?

>> WE SAW YESTERDAY THE HOUSE INTRODUCED THEIR OWN SLATE OF AMENDMENTS TO THE SENATE'S BUDGET.

SO TODAY THEY WILL HAVE A JOINT MEETING WHERE THEY WILL COME TO ONE SINGULAR BUDGET THAT WILL GO TO EACH CLAIMER FOR A FINAL VOTE BEFORE IT HEADS TO THE GOVERNOR'S DESK.

THIS IS THE FASTEST A BUDGET HAS MOVED THROUGH THE CHAMBER SINCE 2020, SINCE THE COVID YEARS.

SO A LOT IS HAPPENING HERE.

>> Jeff: AND AT OUR TAPING TIME WE'VE JUST HEARD FROM SENATE PRESIDENT FERGUSON THAT IN HIS VIEW THE DIFFERENCES BETWEEN THE CHAMBERS ARE FAIRLY MODEST.

IS THAT HOW YOU SEE IT?

>> YEAH, I THINK SO MOST ARE LITTLE CHANGES THAT THEY ARE IRONING OUT.

FERGUSON SAID THAT THEY HAD JUST GONE OVER IRONED A LOT OF THE CHANGES THIS MORNING AND IT TOOK UNDER AN HOUR IT SEEMS LIKE THERE ARE THAT A LOT OF THOSE PARTISAN DEBATES WE SAW ON THE HOUSE AND THE SENATE CHAMBER FLOORS.

>> Jeff: YOU HAVE WRITTEN ABOUT A SURPRISE MOVE THIS WEEK, IN THE HOUSE OF DELEGATES, TO AMEND ON TO A SENATE BILL A PORTION OF THE HOUSE'S REDISTRICTING PLAN THAT THE SENATE NEVER TOOK UP.

A LOT OF MOVING PARTS TO THIS.

WHAT'S HAPPENING?

>> YEAH, SO MY IMPRESSION IS THE SENATE BILL WHICH WAS SPONSORED BY SENATOR SHARYL KAGAN WAS GETTING A LOT OF SUPPORT A BILL INTRODUCED SEVERAL TIMES BEFORE AND BACKED BY A LOT OF VOTER RIGHTS ADVOCATES.

AND IT MOVED THROUGH THE SENATE AND NOW IT'S IT WAS IN THE HOUSE COMMITTEE WHERE IT WAS BEING DELIBERATED AND THIS LANGUAGE FOR REDISTRICTING WAS TACKED ON IN A COMMITTEE HEARING.

BEFORE IT WENT TO THE HOUSE FLOOR AND THAT OBVIOUSLY CAUSED A LOT OF UPROAR FROM REPUBLICANS AND THEN ALSO FROM SENATE DEMOCRATS SAYING YOU KNOW, WE THE SENATE HAS BEEN REALLY CLEAR ON THE FACT IT WON'T TAKE UP REDISTRICTING THIS SESSION.

SO BUT THE AMENDMENT SPONSOR SAID THAT IT'S JUST COMRARFYING LANGUAGE IT IS NOT TRYING TO PUSH THE SENATE TOWARD ANY KIND.

VOTE ON REDISTRICTING THIS SESSION BUT THERE'S BEEN PUSHBACK.

IT SEEMS TO ME THE HOUSE WILL APPROVE THE SENATE BILL TODAY WITH THE AMENDMENT DESPITE SOME REPUBLICAN PUSHBACK, SOME AMENDMENTS TRYING TO GET RID OF STRIKING THE AMENDMENT LANGUAGE.

BUT, SENATE PRESIDENT BILL FERGUSON SAID THAT SHOULD IT BE PRESENTED TO THE SENATE, IT IS ESSENTIALLY NOT GOING TO PASS IT WILL BE DEAD ON ARRIVAL.

>> Jeff: AND THE KAGAN BILL WAS, I GUESS, ELECT SON RELATED IT WOULD CHANGE THE MECHANISM FOR FILLING VACANCIES IN THE LEGISLATURE DURING A TERM, WHICH ARE NOW FILLED BY APPOINTMENTS WHICH ARE BASICALLY DICTATED BY THE PARTY CENTRAL COMMITTEES AND IN SOME CASES, THERE WOULD BE SPECIAL ELECTIONS.

THERE IS A QUESTION ABOUT WHETHER THAT IS A RELATED TOPIC.

AND ALSO, THE REPUBLICANS WERE EXPLAINING ABOUT THE MECHANISM BY WHICH THIS AMENDMENT WOUND UP ON THIS BILL.

>> YES, EXACTLY.

ESSENTIALLY, THE REPUBLICANS WERE SAYING THAT IT HAPPENED REALLY QUICKLY.

THEY WERE SAYING IT WAS A SNEAKY WAY OF TACKING IT ALL NOT ALL OF THE MEMBERS WERE OF THE COMMITTEE HEARING.

HOWEVER, THE DEMOCRATS HAVE MAINTAINED THAT IS JUST PROCEDURAL THAT IS HOW IT GOES.

SOMETIMES FOLKS ARE ABSENT OR EXCUSED FOR WHATEVER REASON AND THEY DID GET THE MAJORITY AND FOLKS WERE WE WERE TOLD THEY WERE GIVEN THE AMENDMENT LANGUAGE TWO HOURS IN ADVANCE TO REVIEW IT.

SO THEY HAVE MAINTAINED IT HASN'T BEEN DONE IN ANY SNEAKY WAY TO GET IT THROUGH THE SENATE OR THE HOUSE FLOOR.

>> Jeff: I JUST WONDER HOW MUCH THIS IS GOING TO REVIVE THE TENSIONS WE SAW ON THIS REDISTRICTING ISSUE EARLIER IN THE LEGISLATIVE SESSION WE ARE COMING DOWN TO THE FINAL TWO WEEKS THERE IS A BIT OF A LOGJAM.

THE SENATE PRESIDENT PUT DOWN A MARKER AT HIS NEWS CONFERENCE SAYING THAT THE HOUSE HAS SENT OVER SO MANY BILLS THAT WE IN THE SENATE DON'T KNOW WE CAN GET TO ALL OF THEM.

AND IN THE PAST WE'VE HAD SITUATIONS WHERE FAVORED BILLS HAVE BEEN SORT OF TAKEN HOSTAGE BY ONE CHAMBER OR THE OTHER TO FORCE THE OTHER CHAMBER TO DO SOMETHING.

NOBODY SAID THAT'S WHAT IS HAPPENING YET BUT I WONDER IF WE ARE HEADED DOWN THAT ROAD.

>> YEAH, WE HAVE SEEN A LOT OF TENSION ACROSS CHAMBERS WITH IN PARTIES AND ACROSS PARTISAN LINES ALL SESSION I WOULDN'T BE SURPRISED IF WITHIN THESE LAST TWO WEEKS WHILE THE FOCUS IS SUPPOSED TO BE STRICTLY ON ENERGY AND BUDGET, IF THOSE BILLS CAUSE MORE TENSION ACROSS PARTY LINES OR WITHIN PARTY LINES OR BETWEEN CHAMBERS.

>> Jeff: LASTLY, YOU HAVE BEEN COVERING THE ENERGY ISSUE, SKY HIGH UTILITY BILLS AND COLD WINTER THIS YEAR.

WORKED OUT A PLAN THAT IS SUPPOSED TO REDUCE EVERYBODY'S WAS CALLED THE EMPOWERING WHAT SURCHARGE.

ARE THEY GETTING RID OF THAT PROGRAM WHICH WAS LIKE AN ENERGY EFFICIENCY THING?

>> YEAH, SO ESSENTIALLY THEY ARE AS SENATE PRESIDENT BILL FERGUSON PUT IT, PUTTING A PAUSE ON THE PROGRAM A TEMPORARY PAUSE TO REVIEW AND EVALUATE HOW THE EMPOWER PROGRAM CAN BE USED AS IT'S USED RIGHT NOW IT IS ESSENTIALLY IT MAKES MARYLANDERS' HOMES MORE ENERGY EFFICIENT WHICH ADVOCATES SAY DECREASES YOUR UTILITY BILL.

EVEN IF YOU -- IF THEY ARE NOT BEING REDUCED IN ANY OTHER WAY SO THAT CAN BE LIKE ENERGY SAVING LIGHT BULBS THINGS OF THAT MANNER.

AND THE HOUSE AND SENATE DEMOCRATS BOTH SAID THE REASON EMPOWER IS BEING CUT OR TRANSFERRED MONEY FROM OR REDUCED IN FUNDING FOR THIS YEAR, IS BECAUSE WE NEED TO FIGURE OUT A WAY FOR EMPOWER TO STILL BE OF SERVICE TO FOLKS, CHANGING LIGHT BULBS AND SOLAR PANELS AND THINGS OF THAT NATURE ARE ONLY GETTING US SO FAR THE CHANGES HAVE ALREAD BEEN MADE.

SO YEAH, IT SEEMS LIKE IT IS A TEMPORARY PAUSE FOR NOW.

BUT IT SEEMS LIKE HOUSE AND SENATE REPUBLICANS HAVE BOTH PUSHED TO GET RID OF THE PROGRAM ALTOGETHER SAYING IT'S NO LONGER EFFECTIVE AND THERE'S OTHER WAYS TO REDUCE UTILITY BILLS FOR MARYLANDERS WHICH ARE OBVIOUSLY SKYROCKETING AS WE KNOW.

>> Jeff: YOU CAN READ MENNATALLA IBRAHIM'S WORK AT BALTIMORE SUN.COM AND IN "THE BALTIMORE SUN".

MENNATALLA IBRAHIM WE APPRECIATE YOUR TIME.

THANK YOU SO MUCH.

>> THANK YOU SO MUCH JEFF, I APPRECIATE IT.

[♪♪] >> IT IS A MOMENT OF CRISIS FOR THE PEOPLE OF MARYLAND AND FOR THE PEOPLE OF THE PJN INTERCONNECTION WHICH IS THE 14 STATES WE LIVE IN AND IN A BROADER SENSE THIS IS HAPPENING ACROSS THE UNITED STATES OF AMERICA.

AND YOU KNOW, WHAT YOUR VIEWERS NEED TO UNDERSTAND IS THAT PRIMARILY L. THERE ARE THREE FACTORS INVOLVED IN THE COST OF UTILITIES.

LET'S TALK ABOUT ELECTRICITY RIGHT NOW.

BUT IT APPLIES TO NATURAL GAS AS WELL.

THE FIRST IS, OF COURSE, THE COST OF THE INFRASTRUCTURE.

THE UTILITY COMPANIES BUILD OR POWER COMPANIES BUILD WIRES, THEY BUILD TRANSFORMERS THEY BUILD SUBSTATIONS AND THOSE ARE PAID OFF OVER 30 YEARS LIKE A MORTGAGE.

WHEN A TRANSFORMER IS BUILT THAT COST IS EMBEDDED IN OUR UTILITY RATES FOR 30 YEARS ROUGHLY.

THE LIFE THE PERIOD OF TIME OVER WHICH IT'S PAID OFF.

ONCE IT'S PAID OFF SUDDENLY THAT COST GOES DOWN PRECIPITOUSLY FOR THAT DEVICE.

THE SECOND IS THE COST OF THE ACTUAL ELECTRONS OR NATURAL GAS MOLECULES.

LET'S TALK ABOUT ELECTRICITY.

THE ELECTRONS IN OUR SYSTEM IN MARYLAND EVERY 90 DAYS WE HAVE AN AUCTION WE PICK THE GENERATOR COMPANY THAT HAS THE LOWEST PRICE.

IF THE PRICE OF NATURAL GAS GOES UP AS IT HAS BEEN THAT WILL DRIVE UP THE PRICE OF ELECTRICITY BECAUSE WITHOUT ROUGHLY 50% OF OUR ELECTRONS ARE GENERATED BY BURNING NATURAL GAS.

ON THE OTHER HAND, IF THE WAR IN UKRAINE GOES AWAY AND IF THE MIDDLE EAST IS RETURNED TO PEACE AND THE PRICE OF NATURAL GAS COMES UP, THEN WE PICK THE LOWEST BIDDER SO THAT GETS -- THE RATEPAYERS WILL SEE THAT DECLINE IN THEIR USE AT THIS TIME BILLS.

>> Jeff: LET ME STOP YOU FOR A SECOND AND WE'LL COME BACK TO THE THIRD COMPONENT.

DOES IT MATTER THAT MARYLAND DOESN'T GENERATE ENOUGH ELECTRICITY WITHIN OUR BORDERS AND WE'VE GOT TO BUY SOMETHING LIKE 40% FROM OUT OF STATE?

>> YOU KNOW, I DON'T THINK SO.

IT IS GOOD TO HAVE GENERATION IN YOUR OWN STATE BECAUSE ELECTRONS ARE LAZY.

THEY LIKE TO GO TO THE POINT OF LEAST RESISTANCE WHICH IS THE LOCAL NEIGHBORHOOD AND SO IF YOU HAVE IF WE HAD TWO REACTORS AT CALVERT CLIFFS NUCLEAR REACTORS THE ELECTRONS WOULD BE USED BY PEOPLE LIVING WITHIN 500 MILES THAT IS THE WAY THEY BEHAVE.

BUT I WILL SAY THIS, THOUGH, MARYLAND HAS BEEN AN ENERGY IMPORTER FOR WELL, I THINK FOR OVER 30 YEARS, PROBABLY 40 YEARS.

NOBODY CARED ABOUT IT UNTIL 15 MINUTES AGO, YOU KNOW.

AND WE HAVE VERY MODERATE ELECTRICITY RATES BACK THEN.

AND LET ME GET TO THE THIRD FACTOR AND THAT IS ONE THAT NOBODY HAS CONTROL OVER AND THAT IS THE WEATHER.

WHETHER IT'S FREEZING TEMPERATURES, LAST MONTH OR WHETHER IT'S 105° IN JULY AND AUGUST, THAT'S SOMETHING THAT WE HAVE NO CONTROL OVER.

SO ORDINARILY IN THE PAST, MAYBE ONE FACTOR OR TWO FACTORS WENT AGAINST US BUT THIS LAST WINTER WITH WINTER STORM FERN ALL THREE FACTORS KICKED IN.

AND BY THE WAY, THE CURRENT FEDERAL ADMINISTRATION HAS DECIDED TO ALLOW UNFETTERED EXPORTING OF NATURAL GAS WHICH IS GOOD FOR OUR ALLIES, THAT'S UPSIDE.

BUT THE DOWNSIDE IS THAT IT HAS A TENDENCY TO PUT UPWARD PRESSURE ON NATURAL GAS OR RATEPAYERS IN MARYLAND AND IN AMERICA GENERALLY.

>> Jeff: AS YOU TAKEOVER AS CHAIR, DO YOU SEE A NEED FOR A COURSE CORRECTION OF ANY KIND FROM A REGULATORY STANDPOINT AT THE PSC OR BROADLY ENERGY POLICY?

>> YOU KNOW, YEAH, I DO.

I THINK WE HAVE TO BE MORE HARD EDGED AS ACCOUNTANTS PROFESSIONALLY I AM AN ACCOUNTANT.

I SPENT 45 YEARS IN THE PRIVATE SECTOR AS THE CHIEF FINANCIAL OFFICER OF A MEDIUM SIZED COMPANY HERE IN ROCKVILLE AND THOSE ARE THE KINDS OF SKILLS AT THAT TIME THE GOVERNOR AND THE LEGISLATURE WANT TO DEPLOY IN THE POSITION OF THE CHAIR AND IN THE WHOLE COMMISSION.

AND YOU KNOW, WE ARE GOING TO HAVE TO BE MUCH MORE CAREFUL ABOUT THESE FACTORS.

LET ME SAY SOMETHING HERE, JEFF.

ABOUT 15 YEARS AGO, WE HAD THE WHERE FOR SEVERAL WEEKS HUNDREDS OF THOUSANDS OF PEOPLE WERE WITHOUT ELECTRICITY BECAUSE OF THIS HORRIBLE STORM.

AND AS A RESULT OF THAT, THE PUBLIC, REALLY DEMANDED WE IMPROVE THE INFRASTRUCTURE, THE ELECTRIC INFRASTRUCTURE IN OUR STATE AND THE UTILITIES WENT AND DID THAT.

PEPCO DID, BG AND E DID, THEY ALL WENT AND BUILT FIRST OF ALL THEY STARTED CUTTING TREES, WHICH PEOPLE TYPICALLY DIDN'T LIKE BUT THEY GOT AGGRESSIVE ABOUT THAT.

TRIMMING TREES.

THEY BUILT MORE POWER LINES.

THEY BUILT MORE TRANSFORMERS.

THEY BEEFED UP THE GRID.

WE USED TO HAVE A SITUATION IN ROCKVILLE WHERE IT WAS A CLEAR DAY, BLUE SKY, AND POWER OUTAGE FOR NO APPARENT REASON.

THAT -- THE SYSTEM THE UTILITY COMMISSIONS BEFORE ME AND THE UTILITIES BUILT UP THE INFRASTRUCTURE.

SO THE GOOD THING IS WE HAVE A RELIABLE INFRASTRUCTURE.

THE BAD THING IS THAT'S AN EMBEDDED COST THAT WE WILL BE PAYING OFF FOR ANOTHER 15-20 YEARS SPHOOR HOW SERIOUSLY DO YOU AND YOUR COLLEAGUES TAKE PUBLIC INPUT ON THE RATE CASES?

JUST WATCHING THE HEADLINES GO BY, IT SEEMS LIKE THE UTILITY WILL ASK FOR $100 MILLION INCREASE FOR SOMETHING, THE PUBLIC ADVOCATE SAYS NO.

THERE IS A LOT OF LEGAL PAPERS GO BACK AND FORTH AND ULTIMATELY THE UTILITY GETS HALF?

>> WE TAKE PUBLIC INPUT SERIOUSLY AND THE OFFICE OF THE PEOPLE'S COUNCIL THE AGENCY THAT LOOKS AFTER THE RESIDENTIAL RATEPAYERS WE TAKE THAT VERY, VERY SERIOUSLY.

BUT AT THE SAME TIME WHEN THE UTILITIES SAY WE WANT TO SPEND ON THIS OR THAT WE LOOK AT IT THROUGH THE LENS OF DOES THAT BENEFIT THE RATEPAYER?

THE SHORT RUN, THE MEDIUM RUN AND LONG-TERM.

>> THANKS TO KUMAR BARVE.

THAT IS "STATE CIRCLE" FOR THIS WEEK.

THANK YOU FOR WATCHING WE'LL SEE YOU BACK MONDAY EVENING AT 7:00 P.M.

FOR "DIRECT CONNECTION".

[♪♪]