With plans moving forward in New Jersey and Delaware - not to mention recent progress in Cape Wind's years-long fight in Massachusetts - it's far from certain that Deepwater and Rhode Island will succeed in their quest to be first. And make no mistake, being first is important. For the developer, it means more than just bragging rights. It gives the company a leg up on its competitors as it tries to develop additional wind farms elsewhere. For the state, it means much-needed economic development and valuable green-collar jobs.

In new federal permitting rules published last month, the U.S. Department of the Interior said offshore wind farm operators will need to pay 2 percent of revenues as a royalty to the federal government. That 2 percent is calculated using a formula that relies largely on the wholesale price of electricity.

Gov. Jack Markell wants to end a decades-long practice of viewing energy costs exclusively in terms of dollars and cents, and start considering the long-range impact on public health and the environment. As part of the broader vision, Markell says he'll keep a close eye on Delmarva Power's long-range energy plan, a state required roadmap that is coming before the Public Service Commission. The 10-year plan will help map how the utility buys electricity, and whether it will come from sources near or far.

The Public Service Commission has approved land-based wind contracts between Delmarva Power and two developers after a meeting in Dover that lasted about five hours. Commissioners voted unanimously to approve a 20-year deal between Delmarva and Synergics for a maximum of 100 megawatts of wind power from two wind farms in western Maryland. Commissioners also voted unanimously to approve a 15-year deal with AES for a wind farm in north-central Pennsylvania that would produce up to 70 megawatts.

[O]ffshore wind power is all blue skies and clear sailing now that Delaware, Texas and Massachusetts have approved projects. New Jersey and Rhode Island are also evaluating offshore wind ventures, while utilities and developers in Georgia, Florida and California are researching technologies and site data. This week focused on two reality checks: A still-evolving regulatory scheme adapted from federal offshore oil and gas drilling overlaps state environmental and economic controls, posing a coordination challenge. ...As important, electric transmission connections and capacity are imperative to move power to utilities inland, and balance supply and demand.

Visitors to Rehoboth Beach, Del., soon may be greeted by more than sand dunes, seagulls and beach umbrellas. If offshore wind advocates have their way, scores of 140-foot blades will be spinning in the ocean breeze nearly a dozen miles away, barely visible to the sunbathers. Offshore wind has taken a back seat to offshore drilling for oil and natural gas in the current energy debate.

Onshore wind contracts to purchase energy for Delmarva Power's standard-offer service customers could be given the nod of approval by early October. Wind-power watchers are awaiting the Sept. 17 publication of the Public Service Commission staff report on the contracts. ...Delmarva Power has asked the Public Service Commission (PSC) for an expedited review of three onshore wind contracts, to ensure the power company can include the contracts in its renewable energy portfolio by 2009.

A Delmarva Power consultant estimates that three land-based wind contracts will cost residential customers the equivalent of 24 cents more a month over the life of the contracts. The estimate was part of a package of financial information Delmarva has submitted to the Public Service Commission, which will consider approval of the company's land-based wind power contracts in the coming months.

Lori Neuman, NRG Energy spokeswoman, said because wind is an intermittent resource, NRG Energy will seek permission for a back-up resource, such as a natural-gas-fueled plant. Bluewater Wind's planned offshore wind farm now has state approval and is on its way to securing required permits. But, the approved contract requires Delmarva Power to purchase significantly less power from the wind farm than previously planned.

The final blessing by the agencies on a compromise power purchase contract between Bluewater Wind and Delmarva Power came in the House Chambers at Legislative Hall, allowing Bluewater to begin the permitting phase for a 200-megawatt farm off the coast of Rehoboth Beach. At the same time, the agencies agreed that the debate over whether to mandate construction of a backup natural gas plant in Sussex County would be handled by the Public Service Commission, which regulates Delmarva Power, thus excusing the other three agencies from a role.

One of the most anticipated political votes of the year unfolded as a friendly formality Thursday, as four state agencies unanimously ratified a contract to build what may be the nation's first offshore wind farm. ...At the same time, the agencies agreed that the debate over whether to mandate construction of a backup natural gas plant in Sussex County would be handled by the Public Service Commission, which regulates Delmarva Power, thus excusing the other three agencies from a role. The backup plant was intended to provide a reliable local power source for times when the wind is not blowing as hard.

State officials on Thursday approved an agreement between Delmarva Power and a wind farm developer that could lead to the nation's first offshore wind farm off the Delaware coast. The agreement between Delmarva Power and Bluewater Wind LLC was unanimously approved by the Public Service Commission and representatives of three other state agencies. The agreement, which follows months of conflict and negotiations between the two companies, calls for Delmarva to buy up to 200 megawatts of power annually for 25 years from a wind farm about 12 miles off Rehoboth Beach.

A new Delaware power plant burning natural gas is still worth pursuing, but it should be handled as part of Delmarva Power's long-term planning process for acquiring electricity, the Public Service Commission staff has recommended. The staff, whose counsel the PSC usually follows, also recommended giving final approval to the compromise between Bluewater Wind and Delmarva for a wind farm project off Rehoboth Beach. ...On Thursday, the four agencies are also scheduled to give some direction to the natural-gas plant proposal, which has been less popular politically. The PSC staff originally recommended the backup plant in large part because it would provide electricity when the wind isn't blowing as hard.

Representatives of four state agencies will reconvene Thursday, July 31, and have planned to cast their final vote on a contract between Bluewater Wind and Delmarva Power that could lead to the nation's first offshore wind farm. Representatives of the two companies say they are optimistic the state agencies' representatives will support their contract. ... Changes were made to the state's renewable energy portfolio requirements, giving Delmarva Power 350 percent credit for each renewable energy credit it purchases from Bluewater Wind.

State officials outlined the final steps needed to approve the Bluewater Wind contract with Delmarva Power on Tuesday, as the federal government published long-awaited proposed rules for offshore wind farms. ...During the meeting, Bluewater Wind President Peter Mandelstam noted that the federal Minerals Management Service had just unveiled 450 pages of proposed rules governing offshore wind farms. None has been built off the U.S. coast, and none can be placed in federal waters until the rules are enacted. Federal waters begin three miles from shore.

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.

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.