PSC halves Northrop Grumman’s first interruption penalty and cuts second by 30% after staff review and commissioner amendment

The Public Service Commission amended staff’s recommended penalty reductions for Northrop Grumman and approved the amended reductions by unanimous vote.

Staff analyst Brandon Bowser summarized the company’s request for waiver of distribution-interruption penalties at two Linthicum properties after the January curtailment event. For 7323 Aviation Boulevard, staff reported a communication discrepancy that produced approximately three hours of noncompliant gas usage when an extension of the event was not received by boiler operators; staff found the communication protocol deficient and recommended a 25% reduction of the $34,791.22 penalty to $26,093.42. For 1212 Winterson Road staff found Northrop Grumman curtailed roughly 91% of usage but could not curtail two critical manufacturing processes that run only on natural gas; staff recommended a 10% reduction of the $113,071.45 penalty to $101,007.64, noting the company had not fully understood OFDS (Optional Firm Delivery Service) options.

Northrop Grumman’s counsel Bobby James argued the company made good‑faith efforts, that the Aviation Boulevard facility curtailed 165 of 168 hours (three hours of use), and that BGE’s notification system contributed to the failure. Jack Leake, Northrop Grumman director of facility engineering, told commissioners the physical switchback to alternative fuel took about two hours, explaining the three-hour noncompliance window.

During deliberations Commissioner McLean offered an amendment increasing the reductions to 50% for the Aviation Boulevard penalty and to 30% for the Winterson Road penalty; commissioners approved the amendment and then the amended motion by voice vote.

The final order adopted in the meeting reduces the penalties for the two properties by the amended percentages.