The background:
On April 6, 2006, House Bill 6 did something amazing, it passed the Delaware State House (34 - 4), and the Senate (15 - 4), and it was signed into law by the Governor, all on that day. The Bill was the General ASSembly’s reaction to a harsh rate spike for Delmarva Power and Light customers, and it started the process for Delaware’s first “cost-effective” utility:
To stabilize long-term pricing in the DP&L service territory, the Act provides for a request for proposals through a competitive process to build cost-effective merchant generation in the State, to be utilized to serve some of the load requirements of DP&L.
When the process was complete, the primary spot was filled by the country’s first off shore wind project, submitted by Bluewater Wind, with a back-up gas plant that would be built by either NRG Energy, (The company that bought the embattled Indian River Power Plant, Delaware’s worst polluter, from Delmarva Power and Light) or Conectiv, (Sister company to Delmarva Power and Light).
(Holy incest, Batman, could that be the reason why Delmarva Power and Light is fighting the wind project…it’s not being built by someone they’re in bed with? Hmmmm…and could that be why DP & L’s President, Gary Stockbridge, wanted to reopen the bidding process after Bluewater was chosen so other companies, like maybe Conectiv, could simply swipe Bluewater’s idea and propose their own wind farm?)
Delmarva Power and Light resisted negotiating, and at one point, the Delaware Public Service Commission deemed the project “not in the public interest” because of pricing issues. But on December 14th, after months of negotiations and Bluewater Wind cutting their price by digging into their profits, the Public Service Commission gave the project a thumbs up:
“Bluewater’s project is a cost-effective mechanism that takes control of Delaware’s energy needs and provides a price hedge against the unpredictable and volatile movement of the PJM market,†the staff wrote in the report.
But despite the PSC’s recommendation, on December 18th our General ASSembly, represented by Russ Larson, tabled the project, citing questions about which Delaware energy customers would pay for the project. HB 6 applied the cost to DP & L’s residential and small business customers, and the PSC could have, without the intervention of the legislature, spread those costs to Delmarva’s large business customers, too, significantly reducing the price.
The wrench in the works was thrown in by a handful of legislators, unknown until just this week, who questioned spreading the cost to all Delaware energy users, including Delaware Electric Cooperative customers. (Is this where I’m supposed to act stupid and think that this group of legislators were oblivious to this entire issue until the day before the final decision was going to be made? It was part of HB 6. Good grief).
So basically the Delaware General ASSembly, the body that passed HB 6 in one day because it was so important, is stalling the process over an issue that’s clearly spelled out in their own legislation, causing Delawareans who have followed the process to roll their eyes so much that the friction is causing the current warm spell.
The interview with Pete Schwartzkopf:
To gain some kind of insight into what happened, last week I spoke with Representative Pete Schwartzkopf, whose 14th District would be the most impacted by the project. Schwartzkopf supports the project, citing, among other things price stability:
“They can tell you on day one and they can tell you on day 3005 what you’re going to pay for power.”
And the creation of new jobs:
“A lot of jobs would be made, these are things that the leaders of our state should be looking at…” FULL AUDIO
With the proposed wind farm sitting 11.5 miles off the coast of Rehoboth Beach, I wondered what kind of feedback Representative Schwartzkopf was getting from his District:
“I only had one person contact me or give me any negative feedback on the wind farm location. They want the wind, they just didn’t want it off Rehoboth.” FULL AUDIO
A question I often hear from people when discussing the project is why are only DP & L residential and small business customers affected by it? Well, according to Representative Schwartzkopf, it’s partly because Delmarva’s customers were “thoroughly impacted with deregulation” and had to eat a 59% increase. AUDIO There’s also the obvious difference that DP & L is a for profit company while the Delaware Electric Cooperative, Delaware’s other main energy supplier, is non-profit and customer run, and as a non-profit, isn’t under the jurisdiction of the PSC.
Schwartzkopf sent an e-mail to the leadership expressing his disappointment at the project being tabled last month, and asking that they convene a meeting with the independent consultant:
I ask that you join me in requesting the House and Senate leadership to convene a meeting either jointly or separate and allow the independent consultant, not Bluewater Wind or Delmarva or the PSC, to address the many questions that we have followed by an explanation as to what happened leading up to the vote on 12/18/07. If Russ is voting on our behalf, then we need to be fully informed so that we can express our will on our leadership to represent us fairly.
Interestingly, Schwartzkopf told me that no one from the leadership ever asked him if he supported the project or not. The General ASSembly never had a vote on whether or not to table the project on December 18th.
Another issue we discussed was the cost of the project. Contrary to rumor, an extra charge on your bill for wind energy isn’t a given. According to Schwartzkopf, the numbers that we’re hearing attached to the monthly increases are based on, “Today’s prices for coal, and the worst case scenario for wind.” AUDIO
Until I spoke with the Representative, one of my main concerns was that the State would have to absorb the price of the project if it wasn’t completed. That’s not the case. Delawareans aren’t paying for the construction of the wind farm, and if, for any reason, the project is stopped before it’s completed, we won’t pay anything.
“This (the wind farm) is a win, win, win, win all the way around.” AUDIO
Finally, the 14th’s Representative has a message for supporters of the project, “Don’t give up.” AUDIO
We’ll keep you up to date on this issue as it unfolds…AGAIN.