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The average residential Delmarva Power customer could end up paying just 70 cents a month more over the next 25 years for Bluewater Wind's power than they would have paid for fossil-fuel generated electricity, a team of state consultants said Thursday.
The projection is significantly lower than the $6.46 a month "wind power premium" the consultants projected in a December analysis of the previous proposed contract between Bluewater and Delmarva, which would have had Delmarva buy twice as much wind power. ...Under the new, smaller contract, Sheingold estimates the average monthly additional cost on a residential customer, averaged over 25 years, will be 70 cents.
In the early years, those additional costs will be an estimated $1.79 a month over market, and over time, will turn into a savings as fossil fuels get more expensive.
Also filed under [
Tax Breaks & Subsidies]
Delaware lawmakers took an $800 million step toward a cleaner energy future last week, endorsing a 200-megawatt offshore wind farm likely to spin off more noise than light -- at least for now.
The Bluewater Wind venture on average would power only one out of 15 light bulbs in Delaware's homes and small businesses when it begins operation in 2013.
That 6.7 percent share of nonindustrial power sales would pose no threat to coal as king of overall electric supply in Delaware and would barely register on regional and national power grids dominated by coal and nuclear. ..."I don't think business decisions should be legislated like that. The wind farm is a good, positive thing, but they've rammed it down somebody's throat and they're making people pay for it," Blanchies said.
"When the state is trying to promote something, they should provide grants and do other things to promote it, not take money away from the ratepayers."
Bluewater Wind has no power-purchase deal with Delmarva Power yet, but a Bluewater official urged supporters of an offshore wind farm to keep the faith. ...Both sides, as well as Senate Majority Leader Anthony DeLuca, have expressed optimism in recent days that a deal can be reached, even as the end of the Legislative session on June 30 draws near. ...The negotiators must craft a complex, unprecedented document. There are currently no wind farms off the coast of the United States, and as such, no contracts to buy power from one of those wind farms.
The financial troubles of Bluewater Wind's parent company will likely not have an impact on the project being debated in Delaware, observers said.
But one analyst said the Bluewater project has other issues that make it far from a sure thing, even if they sign a contract with Delmarva Power. ...In Delaware, despite indications on Friday that Bluewater and Delmarva were close to an agreement, no announcement was made Monday.
Senate Majority Leader Anthony DeLuca said last week the parties had until early this week to reach agreement, or the Senate would consider its next steps.
Bluewater Wind, Delmarva Power and municipal utilities are edging closer to a deal that could end a yearlong battle over building a $1.6 billion offshore wind farm.
Senate Democrats are pushing for a compromise that could be reached within a matter of days, according to those close to the talks. But they temper such optimism with the fact that Delmarva has walked away from earlier talks. ...The utility says it's unfair to make its customers pay more for so much power from an expensive new technology.
Petitions call for legislators to approve Bluewater wind farm
June 4, 2008 by Leah Hoenen in Cape Gazette
June 4, 2008 by Leah Hoenen in Cape Gazette
It's been all quiet on the wind front in Delaware, as the state's budget woes dominate discussion in the Legislature. For now, debate by elected officials of a proposed offshore wind farm has been moved to the back burner in Dover.
But offshore wind farm supporters continue to lobby lawmakers to approve the project, the fate of which has been in limbo since December, when representatives of four state agencies tabled a vote on a proposed contract between Bluewater Wind and Delmarva Power.
In a pre-emptive strike against a proposed Bluewater Wind contract, Delmarva Power has signed contracts with a land-based wind farm provider for up to 100 megawatts of power at any given time.
Delmarva announced today it had signed the contract with Annapolis, Md.-based Synergics Wind Energy for up to 100 megawatts of energy and renewable energy credits from wind farms in western Maryland.
A legislative move to keep Delmarva Power from having its customers foot the bill for the Bluewater wind farm fight fizzled today, at least temporarily.
House Concurrent Resolution 50, whose prime sponsor is Rep. John J. Kowalko, D-Newark South, recommends that the Public Service Commission deny any request by Delmarva to pass on the costs to ratepayers.
But Kowalko's resolution encountered heavy weather in the House Energy and Natural Resources Committee, whose chairman, Ocean View Republican Rep. Gerald W. Hocker, blasted it as "one of the most anti-business pieces of legislation I have seen."
Delmarva Power said Wednesday that it has selected six companies with which to negotiate contracts for 460 MW of power from onshore wind farms. Delmarva had 31 offers in response to a solicitation for alternatives to a power purchase agreement with Bluewater Wind, an offshore wind developer.
That PPA, tabled in December and still under debate, was the result of a state law that required Delmarva to contract for power produced in the state.
Also filed under [
Zoning/Planning]
When the Sustainable Energy Utility was formed last year, lawmakers envisioned a small nonprofit that could help Delawareans insulate their homes, buy energy-efficient refrigerators or install solar panels.
But the SEU's scope could grow dramatically, thanks to a regional effort to tax polluters. Its coffers could swell by $5 million to $12 million per year, thanks to so-called "carbon taxes." At a time when other agencies are cutting back, the SEU could become a big player in the state's environmental efforts, and influence the debate about whether Delaware needs more power plants or alternatives, such as offshore wind turbines.
A resolution approving a wind farm off the shore of Rehoboth Beach would pass if voted on by the Senate today, two Democratic and two Republican senators told The News Journal this week.
With two months left in the session, the Senate is the last government hurdle for Bluewater Wind's 150-turbine energy project, but Democratic leaders have yet to schedule a vote on the resolution. ...Sen. Thurman Adams said he did not know if a pro-Bluewater majority had formed in the Senate or his caucus. But, he said, "that would be very important, to listen to what the majority of the caucus says."
Adams said he is not currently in the Bluewater Wind camp, preferring to reserve judgment until he has more information on costs. "We're still looking at it and seeing what can get worked out, what is best for the consumers."
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It was a busy week in Dover for lobbying and discussing the Bluewater project. This week saw the formal release of the report endorsed last week by the Senate Energy and Transit Committee, in addition to the disclosure of the eight cancer clusters by the Department of Public Health. ...
The formal, bound draft was a forceful argument against the Bluewater project ...Unlike the first draft, it implicitly, but does not explicitly, calls for the project's defeat. It suggests a task force to investigate an interstate offshore pilot project with Maryland, Virginia and New Jersey. ...It "has the potential" to eliminate more jobs than it creates, instead of the last draft's language that a net job loss "appears almost certain."
Bluewater Wind issued a blistering rebuttal to a draft Senate report that calls its offshore wind power contract too expensive and the fruits of a flawed process.
Bluewater's rebuttal calls the Senate report an "advocacy piece" that should not receive the deference a "neutral party reporting fairly on the evidence would be afforded."
It's time for the government to give Bluewater an answer, the rebuttal says. ...The report, which is advisory and does not require a full Senate vote, says the Public Service Commission and other state agencies did not properly carry out legislative instructions to look for new, in-state sources of generation.
Panel issues criticism of wind deal; Final report refrains from outright rejection of plan
April 18, 2008 by Aaron Nathans in The News Journal
April 18, 2008 by Aaron Nathans in The News Journal
A Senate panel approved a controversial report critical of the Bluewater Wind contract, and the state process that led to it. But the panel removed language urging the rejection of the contract, instead instructing policymakers merely to give "great weight" to the recommendations.
This could give Bluewater some wiggle room to continue its efforts to convince senators of the merits of the 25-year contract with Delmarva Power. ...Also on Thursday, the federal Minerals Management Agency designated five states, including the area off Rehoboth Beach, as priority areas for testing offshore technology. That could allow Bluewater to proceed with testing the offshore winds, a step in its plans to construct the wind farm.
Draft offshore wind farm report gets mixed reviews from legislators
April 18, 2008 by Leah Hoenen in Cape Gazette
April 18, 2008 by Leah Hoenen in Cape Gazette
Lawmakers gave mixed views on a draft copy of the Senate Energy and Transit Committee's renewable energy hearings report, which has been leaked to some legislators and others. The report recommends Delaware not pursue an offshore wind farm and challenges the Public Service Commission proceedings that led to the proposal. ...Following the tabling of a proposed power purchase agreement between Bluewater Wind and Delmarva Power, the Senate Energy and Transit Committee - headed by Sen. Harris McDowell, D-Wilmington North - held lengthy hearings to address some of the concerns about the offshore wind farm, including the cost of the power it would generate.
Senate panel OKs report critical of offshore wind farm project
April 17, 2008 by Aaron Nathans in The News Journal
April 17, 2008 by Aaron Nathans in The News Journal
A Senate panel has given its approval to a report critical of the Bluewater Wind project and the state process that led to a proposed 25-year contract with Delmarva Power.
But the panel removed language urging the defeat of the contract, instead instructing policymakers to give great weight to the recommendations.
The vote of the Senate Energy and Transit Committee was 4-2. ...The new draft of the report has not been released to the public. It is expected to be released Tuesday. Because the report is advisory only, it is not expected to be voted on by the full Senate.
Report on wind farm: Agencies bent rules; Sen. authors accused of trying to kill project
April 15, 2008 by Jeff Montgomery in The News Journal
April 15, 2008 by Jeff Montgomery in The News Journal
Senate Democratic caucus members discussed the document secretly last week and then called for revisions. But leaked copies circulated throughout the weekend as debate intensified over a stalled proposal that would make Delmarva Power sign a 25-year "must-take" electricity purchase contract with Bluewater Wind LLC.
"After a year and a half of proceedings, many factual uncertainties remain and key issues have not been explored to the depth that is warranted when making a $5.6 billion, 25-year commitment," the report said. ...The draft report is based on a series of hearings in February and March to examine Bluewater's proposal, the PSC process and alternative energy options.
House bill demands wind park approval; Resolution heads to an uncertain fate in Senate
April 11, 2008 by Jeff Montgomery in The News Journal
April 11, 2008 by Jeff Montgomery in The News Journal
The House solidly approved a resolution Thursday demanding approval of a 150-turbine offshore wind park east of Rehoboth Beach.
The 25-11 vote was the clearest legislative endorsement so far of the $1.5 billion construction project and came as project supporters lobbied to head off a damaging report that is soon to be released by a Senate committee. ..."I think to send a message forcing a for-profit company, when you're in a time of deregulation [to sign a contract] is completely the wrong thing to do," said Rep. Gerald Hocker, R-Ocean View, who voted against the bill. He warned that some customers would abandon Delmarva, raising the costs of the wind farm for remaining residents.
Also filed under [
Zoning/Planning]
The House solidly approved a resolution today demanding approval of a 150 turbine offshore wind park east of Rehoboth Beach, while project supporters worked to head off a separate, damaging committee analysis.
The 25-11 vote vote sent the measure to an uncertain future in the Senate, where both Democratic and Republican leaders have had more reservations about the project's cost, fairness and effect on Delmarva Power. ...The Senate may decide to give guidance a different way, but the important thing is one of two houses has given guidance to the Controller General to support the contract with Bluewater."
Others were less happy.
"I think to send a message forcing a for-profit company, when you're in a time of deregulation [to sign a contract] is completely the wrong thing to do," said Rep. Gerald Hocker, R-Ocean View, who voted against the measure. He warned that some customers would abandon Delmarva, raising the costs of the wind farm for remaining residents.
Also filed under [
Zoning/Planning]
Report may doom offshore wind farm; Senate panel's unreleased draft says Bluewater plan is too costly
April 10, 2008 by Jeff Montgomery in The News Journal
April 10, 2008 by Jeff Montgomery in The News Journal
Delaware should kill a 25-year purchase proposal for offshore wind energy, according to a draft report prepared for a legislative committee reviewing the state's energy supply. ...
The draft -- written by committee Chairman Harris B. McDowell III, D-Wilmington North -- says that Bluewater Wind's offshore energy venture in Delaware could be jump-started with public aid. However, if approved as is, the report could be the death knell for a state-mandated offshore wind contract between Bluewater Wind and Delmarva Power.
"Probably the report will determine what will be done" on the wind vote in the Senate, said Senate President Pro Tem Thurman Adams Jr., D-Bridgeville.
Also filed under [
Zoning/Planning]