Opinions
The PSC staff said Bluewater Wind's proposal to pass along the costs of commodities, such as steel for the turbine towers, was potentially too expensive for electricity customers. That's a good point, even if it is unlikely that steel prices will jump as high as the worst-case scenario.
But the solution to that problem is to put a cap on costs. If the costs go above the cap, let Bluewater Wind absorb costs or -- if it's wildly expensive -- end the project.
As for the other costs of offshore wind, let's be realistic. Wind-generated electricity has large startup costs. After that, costs are stable. This is not true of current sources of electricity generation.
Long-term contracts are a bad deal if you expect prices to dip. But few people today expect the cost of electricity to drop over coming decades.
Just look at oil prices. They went over $90 a barrel this week. Betting on oil prices is like betting on an unpredictable roller coaster. Natural gas prices also are unlikely to stabilize.
Finally, does Delaware really want to depend on coal for the long term? What if carbon taxes are imposed? Even if they aren't, can society afford the continued adverse health and climate effects of burning coal?
Offshore wind is not necessarily the solution to Delaware's future energy needs. It certainly isn't the only solution. Neither is this particular proposal from Bluewater Wind the final answer.
A lot of questions remain about offshore wind. But there is also a lot of promise.
But this isn't the "nail in the coffin," as one legislative opponent said. There is still room and time to negotiate.
Delaware shouldn't waste an opportunity.
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