Saint Agnes seeks full waiver of $2.47M interruption penalty; PSC takes request under advisement

Ascension Saint Agnes Hospital asked the Public Service Commission on Aug. 6, 2025, to waive or substantially reduce a $2,473,566 penalty BGE assessed after the hospital failed to interrupt natural-gas use during a scheduled curtailment in January. Staff recommended a 47% reduction, producing a recommended final penalty of $1,250,326, based on documented repair costs, fuel purchases and the economic benefit Saint Agnes received from participating in interruptible service.

Staff engineer Cameron Walton told commissioners that Saint Agnes experienced a catastrophic boiler failure in November 2024 related to a software upgrade and faulty oxygen sensors; the hospital spent roughly $590,000 to $670,000 on repairs and upgrades and reengaged its prior maintenance vendor. Staff said the hospital had passed a physical interruption test on Dec. 10, 2024, but nevertheless failed to interrupt gas use for a 71‑hour period in January, and staff therefore recommended a partial waiver equal to documented offsets.

The Office of People's Counsel (OPC) attorney Mark Sheebas told the commission OPC supports staff’s 47% reduction but asked for more information about whether Saint Agnes ‘‘substantially reduced’’ gas usage during the interruption window and how the December physical-interruption test related to the later failure. OPC said the record lacked sufficient technical detail about the test protocols and urged the commission to seek additional information from both the hospital and BGE.

Hospital witnesses, including Michael Finnegan, chief operating officer, and Steve Oc, manager of energy supply (a licensed professional engineer), said Saint Agnes acted in good faith, immediately terminated the subcontractor it had used after the November failure, spent roughly $670,000 to repair and upgrade fuel-switching equipment, and has resumed monthly exercises of its boilers. Finnegan said the hospital served critical patients during the curtailment (including an over‑census and NICU patients) and described the financial and community impacts of a full penalty. He asked the commission either to waive the assessment in full or to reduce it to an amount equal to the hospital’s annual savings from interruptible service — about $480,000, according to the hospital’s witnesses.

BGE representatives and staff described the physical-interruption testing process (meter monitoring and notice protocols) and noted the utility does not perform on-site inspections for every customer test. Commissioners pressed staff and the hospital on the timing of the November failure, the December test that followed, and why the system failed in January despite prior testing and recent repairs.

After extended questioning and argument from staff, OPC and hospital counsel, Chair Hoover announced the commission would take the matter under advisement and issue a written decision later. No final vote or order was issued at the meeting.

Discussion only: staff recommended a partial waiver; OPC requested additional information; hospital requested full waiver or a waiver equal to its annual interruptible-service savings. The commission directed that the record be supplemented and took the matter under advisement pending further written action.