American Sugar Seeks Waiver of Gas Usage Penalty After Significant Reduction Efforts

In a recent Administrative Meeting held by the Public Service Commission in Maryland, representatives from American Sugar presented their case regarding gas usage during a recent curtailment event. The meeting highlighted the company's commitment to reducing gas consumption and the significant efforts made to prepare for potential curtailments.

American Sugar's team, including senior director Quentin George and vice president Peter O'Malley, emphasized that the company had invested four years in maintenance and testing to ensure its facility could operate on oil during gas shortages. During the curtailment event, the facility managed to minimize gas usage, burning gas for only about 68 out of the 72 hours to relight boilers, which is a notable achievement given the circumstances.

The Office of People's Counsel (OPC) raised concerns about the facility's gas consumption, noting that American Sugar burned over 575 therms per hour, which is significant. However, American Sugar argued that this figure should be viewed in context. They pointed out that their total gas usage during the event was drastically reduced to 2,253 therms, compared to the typical 200,000 therms used in a similar timeframe. This reduction, they argued, demonstrated their good faith efforts to comply with the curtailment order.

American Sugar is seeking a waiver for penalties associated with their gas usage during the event, citing unforeseen circumstances such as extreme cold weather and their prompt response to the situation. They referenced a previous case where Sinai Hospital was granted a waiver under similar conditions, suggesting that their situation warrants the same consideration.

The discussions at this meeting underscore the ongoing challenges and responsibilities faced by energy-intensive industries in managing their gas consumption, particularly during curtailment events. The outcome of American Sugar's request for a penalty waiver will likely set a precedent for how the commission handles similar cases in the future, reflecting the balance between regulatory compliance and operational realities in the energy sector.