Delaware's major renewable energy project -- the Bluewater Wind offshore wind farm -- is still a go, even as credit markets tighten company officials say. That's true even given significant debt problems faced by Bluewater's Australian parent company, Babcock and Brown.

That summer in Delaware, Bluewater Wind finalized its contract to build a wind farm of 70, 130-meter-tall turbines 13 miles off the coast of Delaware. After a 59 percent rate hike in state energy prices, state legislators passed House Bill 6. This consumer retail act mandated the creation of a new power plant within the state of Delaware. ...According to the [Bluewater] Web site, "There were no significant negative impacts found on fish, flora and fauna." Delaware Audubon Society Conservation Group is showcased in supporting the project, saying it's safe for birds. ...[Thomas Kunz] says there is evidence suggesting that the offshore wind turbines Bluewater proposed to build would attract bats, causing them to die.

Continued debt problems have dragged down the stock value of Bluewater Wind's Australian parent company to around one Australian dollar a share, far from its $31.08 a share value a year ago. But leaders of Babcock & Brown said Wednesday the firm's debt issues, and the current freeze-up of global credit markets, will not derail Bluewater's plan to build a wind farm off Rehoboth Beach.

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.

Delmarva Power's land-based wind farm contracts are scheduled to get a vote at the Public Service Commission today, and the commission staff has recommended approving a 20-year deal between Delmarva and Synergics for a maximum of 100 megawatts of power from a farm in western Maryland. The commission staff also said the PSC should approve a 15-year deal with AES for a maximum of 70 megawatts of wind power from a project in north-central Pennsylvania.

Blue H's 328-foot-tall wind turbine is different from the offshore generators that have sparked opposition from U.S. coastal residents. Because it sits atop pontoons, this turbine can operate in water farther from shore, where winds are stronger and more reliable - and where it's not visible from land. ...Linowes said that those opposing onshore wind projects - which often are gigantic schemes spanning tens of thousands of acres - welcome proposals to place turbines out in the water. She calls current onshore turbines "dinosaurs" and says she finds Blue H's idea appealing because it shows "that we should look to new technology rather than bigger land-based turbines," she said.

[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.

H. Russell Frisby Jr., who was chairman of the Maryland Public Service Commission from 1995 to 1998 and now represents the advocacy group Marylanders for Reliable Power, said Friday at the Maryland Association of Counties summer conference that the clock is ticking for Maryland to free up enough capacity to meet the state's growing demand, and residents need to realize that.

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.

Maryland has opened energy supply talks with a Delaware offshore wind developer, hoping to tap into green energy from an expanded wind farm off Rehoboth Beach. State Energy Administration officials in Maryland said Wednesday that options now under review include using Bluewater's proposed turbine complex to power all of Maryland's state and county buildings, and possibly drawing energy from a second wind farm that could be built off Ocean City. ... "This is in its infancy. At first blush, I would say: Build it in Delaware, let us look at it, let us see how it looks and what kind of problems you have first," Hall said. Neither of Bluewater's talks in Maryland and New Jersey currently involve forced contracts or costly, regulator-driven deals of the type used in Delaware to produce the Delmarva contract.

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.

The Delaware Electric Cooperative and its 11 sister co-ops have signed an agreement to buy power from a planned land-based wind farm in Pennsylvania. The Old Dominion Electric Cooperative has signed a 15-year agreement with AES Corp. for power from a planned wind farm straddling Tioga and Bradford counties in north-central Pennsylvania. It is named the Armenia Mountain Wind Energy Project. The purchase includes half the power and half the renewable energy credits from the facility, which is expected to produce between 100 and 140 megawatts of power when the wind is blowing hardest, the company reported.

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.