Thank you, Ken, and good afternoon. It’s a pleasure to be here again. Around five years ago I talked to this group about fundamental changes under way in the energy industry. Then, electric utilities across the country were dealing with the unintended consequences of a patchwork of deregulation efforts. Electric utilities, the classic “widows and orphans” investment, became as volatile as the trading pit at a commodities exchange. It seemed the electric industry was making headlines daily.

Unfortunately, the headlines were rarely positive. Most dealt with power shortages, soaring prices, trading disasters and the swift consolidation of our industry. At the extremes, we saw one of the 10 largest corporations in America, Enron, disappear in a blitz of scandals. Pacific Gas and Electric, one of the most respected names in our industry, was forced into bankruptcy by a regulatory scheme created by California that was positively insane. Two other California utilities teetered on the brink and, ultimately, the fiasco cost Gov. Gray Davis his job.

I wish I could tell you that all of this ended with California. But other states created new regulatory rules based on market rates but then enacted multiyear transition periods. Those transitions are now coming to an end, and we’re seeing another wave of silliness.

In Maryland, Constellation Energy’s Baltimore Gas & Electric subsidiary announced a 72 percent rate increase for residential customers to bring it in line with the market. The legislature promptly tried to fire the Public Service Commission, the Maryland Supreme Court denounced the legislators’ actions as unconstitutional, and just two weeks ago, as the new governor was trying to clean up the mess, the Commission chairman resigned.