Saint Agnes Hospital seeks full waiver of $2.4M penalty after gas curtailment failure

In a recent meeting of the Public Service Commission (PSC) in Maryland, the ongoing discussions surrounding Saint Agnes Hospital's natural gas consumption and a significant penalty imposed by Baltimore Gas and Electric (BGE) took center stage. The hospital is seeking a waiver of a $2.4 million penalty related to its failure to curtail gas usage during a severe winter weather event earlier this year.

Saint Agnes Hospital, which serves a vulnerable population in Southwest Baltimore, presented its case to the commission, emphasizing its commitment to providing uninterrupted care to its patients, especially during extreme weather conditions. The hospital's Chief Operating Officer, Michael Finnegan, highlighted the critical role the facility plays in the community, stating that it offers essential services 24/7 and has invested nearly $700,000 in fuel-switching technology to ensure operational continuity.

During the meeting, Finnegan expressed the hospital's disagreement with the PSC staff's recommendation for only a partial waiver of the penalty, arguing that the hospital had acted in good faith and met the necessary criteria for a full waiver. He pointed out that the staff's assessment seemed to hinge on an unspecified failure in due diligence regarding subcontractor selection, which he contended was not adequately substantiated.

The discussions also touched on the broader implications of the penalty for the hospital's operations, particularly its ability to provide charity care and maintain services for low-income patients. Finnegan stressed that the financial burden of the penalty could lead to reduced capacity for patient admissions and the elimination of programs aimed at improving community health.

Commissioner Barbay raised concerns about the fairness of completely waiving the penalty, noting the importance of accountability in ensuring compliance with energy consumption regulations. The dialogue underscored the delicate balance between enforcing regulations and supporting essential healthcare services in the community.

As the PSC deliberates on the matter, the outcome will not only impact Saint Agnes Hospital but also set a precedent for how similar cases are handled in the future, particularly in the context of hospitals serving low-income populations. The commission's decision will be closely watched by stakeholders across the healthcare and energy sectors, as it could influence the operational landscape for hospitals in Maryland and their ability to respond to energy demands during critical times.