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Pepco/Exelon merger will burden customers

PSC should stop corporate giveaways, protect consumers

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Exelon, gay news, Washington Blade
Exelon, gay news, Washington Blade

(Logos courtesy of Pepco and Exelon)

No matter how you couch it, the Pepco/Exelon merger will cost the consumer money. They did a great job of getting people to support the merger but have yet to prove how it will bring any real additional benefits to their customers. It did benefit Pepco shareholders and executives. Within hours of the D.C. Public Service Commission (PSC) vote on March 23, ā€œExelon dissolved Pepco by suspending the trading of Pepco stock. This move resulted in a $1.6 billion windfall for shareholders ā€“ a nice chunk of which went to Pepco executives. Pepcoā€™s CEO Joe Rigby, cashed out nearly $25 million in Pepco stock before retiring and turning the Pepco (a company of Exelon) reigns over to David Velazquez (who made $5 million on the sale).ā€

Now, according to the Washington Post, ā€œPepco is asking the D.C. Public Service Commission for a 5.25Ā percent across-the-board rate increase for most of its 282,000 District customers. The request comes three months after the company completed its $6.8Ā billion merger with Exelon. In April, Pepco filed a request with the state of Maryland to increase rates 10Ā percent for Montgomery and Prince Georgeā€™s counties, which would generate $127Ā million annually. That request is under review. Under the proposal, filed Thursday, the typical Pepco residential customer in the District would see their power bill increase by $4.36 a month.ā€

Now if you got an individual bill from Pepco in D.C., your April bill would have shown a $50 credit, which was part of the agreement Pepco made to get the merger passed. Now they want it back and will get it in one year if the rate increase is passed as requested.

Pepco and Exelon proposed a total package of $78 million, including credits to consumers and donations to non-profit groups to get support for the merger. They will get this back in spades if the rate increase is approved.

I recently heard Pepco CEO David Velazquez speak at a program sponsored by Leadership Greater Washington (LGW) whose signature program I went through in 2002. Velazquez came across as both sincere and impressive in his presentation and responses to questions. He spoke about how the merger was going forward and how it was impacting staff. He mentioned an issue many companies are having, which is how to work with Millennials as staff and customers. I suggested he might want to bring in Jason Dorsey to talk to and work with his senior managers. Jason is an expert on Millennials having founded The Center for Generational Kinetics.

During the Q&A part of the program, I asked a question that elicited strong responses from two people I have great respect for: Doug Duncan, CEO of LGW, and Debbi Jarvis, PHI vice president, Corporate Citizenship & Social Responsibility. My question was whether the promise of continued and even additional donations to non-profits proposed as part of the merger package was what got numerous non-profit CEOs including Duncan to sign onto a Pepco ad asking the Public Service Commission to approve the merger and whether that promise could be considered a bribe. Both Duncan and Jarvis vehemently denied any specific promises to groups were made.

On the Pepco website the company proudly boasts of their corporate donations and civic work and posts its 2014 corporate responsibility report. It lists about $2,210,729 in contributions to roughly 350 entities for 2014. They break down the contributions into six categories including: civic engagement; environment and energy; social services: health, safety and emergency services; youth and education; business initiatives and workforce development; and arts and culture.

Interesting the smallest percent of donations, five percent, was given to the groups in the Energy and Environmental area when you would think this would be the area of most concern to a company like Pepco. It claims over the last five years to have donated $10.5 million to more than 2,100 groups. The report includes awards given to Pepco for being good corporate citizens. While applauding this, customers of Pepco should remember these donations come from the money we pay for energy consumption. Pepco is donating your money.

These quick rate increase requests make it clearer why Mayor Bowser and Attorney General Karl Racine opposed the merger in its final form. It will be crucial the PSC take a long and in-depth look at these requests and stop giveaways to Exelon/Pepco and do their job protecting consumers.

 

Peter Rosenstein is a longtime LGBT rights and Democratic Party activist. He writes regularly for the Blade.

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One year later and no closer to peace

The world must find a way to end this carnage

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(Image by Yevhenii Strebkov/Bigstock)

We are at the first anniversary of the Oct. 7 attack launched against Israel by the terrorist organization Hamas. In that attack nearly 1,200 Israelis were slaughtered, many women sexually mutilated, and 251 hostages taken. There are 97 hostages still unaccounted for. We must never forget who began this war on Oct. 7, 2023, and recognize this is a war between Israel and Hamas, not Israel and the Palestinian people.

I am an American Jew whose parents escaped Hitler, and whose grandparents were killed in Auschwitz. While I will never forget, or forgive Hamas, over the past year I have written about how poorly the far-right Israeli government of Israel has responded. They have every right to defend themselves, but it appears many of the deaths of innocent Palestinian women and children, should have been avoided. But Hamas must take responsibility for these deaths as well as Israel. They hide in tunnels beneath hospitals and houses, and in the midst of Palestinian civilians. Both sides have refused to agree to any ceasefire terms. Reality is had Hamas agreed to return the hostages, including 30 Americans, and many from other countries, many of the Palestinian deaths could have been avoided. We donā€™t even know if the close to 100 hostages they still hold, are dead or alive. 

Over the past year the Palestinian people in Gaza have had their lives torn apart. Their homes have been bombed, and thousands of women and children have died. Much of Gaza has been destroyed. Their healthcare system destroyed, and many are starving, living without any power. Once again, let us not forget who began this war. The stated aim of some Hamas leaders when they began the war was to draw Israel into a wider war. While that may now be happening, contrary to what Hamas wanted, Israel is winning it, and the Arab countries surrounding Israel, are not coming to the aid of the Palestinian people.

No one should feel joy in any of this. It means more innocent people are dying every day. Israelis in the north have been evacuated from their homes and many killed, and there isnā€™t a family in Israel not impacted. The Palestinian people are still suffering and have not rid themselves of Hamas, even though some are now speaking out saying they want to. I am not sure how they can do that. Then the Israeli people have still not rid themselves of Netanyahu, and his right-wing government, and they have better options to do that, and must take them if they ever want lasting peace. 

Today we see the terrorist group Hezbollah continue to bomb Israel, and now Israel is expanding its fight in Lebanon. Hezbollah is losing and innocents in Lebanon are losing their homes, and their lives. Hezbollah, like Hamas, is a terrorist group funded by Iran. The legitimate government in Lebanon cannot control them. Iran, which funds terrorist organizations against Israel, has now directly fired a second round of missiles into Israel. They didnā€™t expect the Arab nations surrounding Israel would come to Israelā€™s aid the first time, but they did, in some ways to protect themselves from the missiles. The United States, whose ships are stationed off shore, shot down Iranian missiles and Israelā€™s Iron Dome protected it from major casualties or destruction. Again, if Hamas thought the Arab nations around Israel would come to their aid, they have been proven wrong. If Israel goes after Iran directly, which the United States is officially urging them not to do, the war could spread further. Iranian oil fields and ports are at risk, which will impact the world. Iran has no Iron Dome.

So, after a year, what has Hamas accomplished? What have they done for the Palestinian people? Are the Palestinian people any better off? Clearly not. We have seen Palestinian students here in the United States, and around the world, trying to get universities and corporations to disinvest from Israel, as the BDS movement has tried for years. But there has been practically no impact at all. Investment money has not been withdrawn from Israel, and no country has withdrawn from their treaty with Israel. I spoke out and wrote, as have many Jews over the past year, asking Israel to declare a unilateral ceasefire in the war with Hamas to allow food and medicine to be delivered into Gaza. They havenā€™t done that, but then Hamas has not agreed to any ceasefire. 

I support a two-state solution giving the Palestinian people their own state, which their leaders turned down in 1947 when it was offered by the United Nations. We saw in Israelā€™s 1948 ā€˜War for Independence,ā€™ as it was called, the surrounding Arab states did nothing to help the Palestinians, rather fought to take more land for themselves. I believe an eventual two-state solution is the only way the Palestinian people will ever be able to live in peace, and the same for the Israeli people. It will only happen if outside nations join together and guarantee Israel will be secure. If that happens, the rest of the world will have to pledge hundreds of billions of dollars to help a new Palestinian state build a sustainable economy. All of this may be wishful thinking, but it seems to be the only answer to secure a lasting peace. 

In the meantime, I join everyone who mourns the lives of the innocents lost this past year, both Israelis and Palestinians, and now those in Lebanon. The world must find a way to end this carnage. 


Peter Rosenstein is a longtime LGBTQ rights and Democratic Party activist.

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Delawareā€™s Simpler absent in LGBTQ fights

GOP candidate is latest to claim support with no action

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(Image by Niyazz/Bigstock)

I read with interest the article published in the Washington Blade stating that the Republican candidate for Delaware’s 14th Representative District supports LGBTQ rights and specifically “legislation protectingĀ transgender people.”Ā I am glad that this lifelong Delawarean and resident of the legislative district with the largest number of LGBTQ people in Delaware is in support of our community. I do not question what is in his heart.Ā I also do not care what is in his heart or the heart of any person seeking or serving in elective office.Ā I care only about what they have done before they decided to seek public office, and what they do once in office.

I served on the board of Delaware Stonewall Democrats and its successor Delaware Stonewall PAC from 2006 to 2021. During that period, I served as either political vice president or president. I was heavily involved with the passage of all LGBTQ legislation in Delaware. That involvement included the passage of Hospital Visitation Rights and anti-discrimination laws in 2009 up to and including the passage of both marriage equality and transgender protections in 2013. I never saw Republican candidate Simpler at any event, fundraiser or lobbying effort for our bills.

It is because Simpler, from a local politically active family, is not known to ever actively support the efforts of our community, a community with a significant number of voters in the district he seeks to represent, that I must question the motives behind his expressing his support in the Blade now. I have not seen such expressions of support in his campaign literature or advertising supporting his candidacy. Delaware, and this area, have had more than their share of office seekers, of both parties, expressing their support, even love, for the LGBTQ community and then doing NOTHING to advance our rights once elected. I fear Simpler is just the latest. However, there is a clear alternative.

Claire Snyder Hall is the Democratic candidate. She is also a member of the LGBTQ community and, in her personal capacity and during her years as executive director of Common Cause, Delaware, has supported and even lobbied for all the legislation mentioned above.Ā Knowing that, LGBTQ members of the 14th Representative District, and their allies, have no reason to look beyond Claire to find a representative who we know will have our backs ā€” it is her back too.Ā Claire is the former chair of the 14th Representative District Democratic Committee, during my term as chair of the Sussex County Democratic Committee, and she is endorsed by Delaware Stonewall.Ā I thank Simpler for “supporting” our community and transgender rights.Ā However,Ā  I support and have contributed to Claire Snyder Hall, who has a track record of helping us achieve those rights.Ā  Ā  Ā 


Mitch Crane is a former president of Delaware Stonewall PAC and a resident of Lewes, Del.Ā 

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Biden-Harris must ensure access to HIV prevention drugs

A historic opportunity to help end the disease

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(Photo by Bowonpat/Bigstock)

The Biden-Harris administration has a historic opportunity to help end HIV. New, cutting-edge drugs that prevent HIV are hitting the market, but insurance companies are trying to twist the rules to deny access to these remarkable therapies.

The White House could stop these abuses and put the country on the right course for decades ahead and prevent hundreds of thousands of new HIV transmissions.

Pre-Exposure Prophylaxis (PrEP) drugs represent one of the strongest tools we have to combat HIV. These highly effective therapies can reduce the risk of contracting HIV by up to 99%. So far, the FDA has approved two once-daily PrEP pills, and in 2021 approved the first long-acting version of PrEP. Other groundbreaking PrEP innovations, such as a biannual dosage form, are in active development. 

PrEP is a major reason why new HIV infections dropped 12% from 2018 to 2022. Yet there’s still work to do. Currently, just 36% of people who could benefit from PrEP are using it. Racial and ethnic groups face wide disparities in PrEP uptake. For example, Black individuals constitute 39% of new HIV diagnoses but only 14% of PrEP users. Hispanics make up 31 percent of new HIV diagnoses, but only 18 percent of PrEP users.

A new federal directive, if properly enforced, could help close these gaps. In August 2023, a panel of prevention experts issued an updated recommendation to clinicians, recommending PrEP ā€” including long-acting forms of the drugs ā€” to people who want to prevent HIV acquisition. Under the Affordable Care Act, most newly issued private health plans must cover without patient cost-sharing to comply with this recommendation beginning this month.

Yet many HIV experts and patient advocates have raised concerns that insurers could misinterpret ā€” or downright ignore ā€” the task force’s decision and keep barriers to PrEP in place. 

One top concern is that insurance companies could decide to cover only one kind of PrEP, even though the task force’s recommendation isn’t drug-specific ā€” it applies to all versions. For example, a health plan might refuse to cover long-acting PrEP and force patients to take oral pills instead. 

Yet long-acting PrEP is a critical option for many patients, such as those who struggle to adhere to once-daily drug regimens, are unhoused, or have confidentiality concerns. One study found that patients taking long-acting PrEP had a 66% reduction in HIV infections compared to those using oral pills. Another analysis calculated that long-acting PrEP could help avert 87% more HIV cases than oral pills, and could save over $4 billion over the course of a decade.

Another concern relates to insurers’ increasing use of “prior authorization,” a practice in which health plans refuse to cover certain drugs unless doctors obtain prior permission. Insurers could also force patients to try a number of therapeutic alternatives before agreeing to cover the medicine they and their doctors agreed upon ā€” this is known as “step therapy.” There’s evidence that “prior authorization” policies may disproportionately impact Black and Hispanic individuals, who are already at higher risk of HIV.

Fortunately, these insurer-imposed barriers aren’t inevitable. The Biden-Harris administration, through the Centers for Medicare & Medicaid Services (CMS), has an opportunity to issue clear, detailed guidance that ensures health plans follow through on the legal requirement to cover PrEP for all eligible patients and at no cost.

CMS’s guidance should clarify that insurance companies are obliged to cover all FDA-approved versions of PrEP, including both daily pills and long-acting injectables. When now Vice President Harris was Sen. Harris, she introduced groundbreaking legislation called the PreP Access and Coverage Act, which would require all insurers to cover all forms of PrEP without cost-sharing and prior authorizations. So we know where she stands on the issue. 

A number of states, including New York and California, have already established similar coverage requirements and prohibitions on prior authorization for PrEP. 

A similar requirement already exists for contraception. Plans are required “to cover without cost sharing any contraceptive services and FDA-approved, -cleared, or -granted contraceptive products that an individual’s attending provider determined to be medically appropriate.”  

CMS just needs to adopt language along these lines for PrEP. Doctors ā€” not insurance companies ā€” should decide which drugs best suit patients’ needs.

Thanks to revolutionary research happening every day, people with a reason to be on PrEP have more options available to them than ever before. Yet insurers are intent on restricting access to these innovative therapies. New federal guidance can help combat this and if properly enforced set us on a path toward ending HIV.


CarlĀ SchmidĀ is executive director of the HIV+Hepatitis Policy Institute.

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