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Electric customers to pay 24¢ on bill for wind projects

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.

Delmarva submits financial report to state's Public Service Commission

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. The PSC review starts at its meeting Tuesday in Dover.

Utility officials are hoping to see fast approval of the projects, proposed by developers Synergics of Maryland and AES of Virginia. Synergics signed a 20-year deal with Delmarva for a maximum of 100 megawatts of wind power from a farm in western Maryland. AES signed a 15-year contract for a maximum of 70 megawatts of wind power from a project in north-central Pennsylvania.

A vote at the PSC could come as early as Oct. 7.

"I don't know how many utilities in the region can say that they have met their state's aggressive renewable energy goals for the foreseeable decade. I'd really almost put that challenge out there. Delmarva's got a lot to be proud... more [truncated due to possible copyright]  

Delmarva submits financial report to state's Public Service Commission

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. The PSC review starts at its meeting Tuesday in Dover.

Utility officials are hoping to see fast approval of the projects, proposed by developers Synergics of Maryland and AES of Virginia. Synergics signed a 20-year deal with Delmarva for a maximum of 100 megawatts of wind power from a farm in western Maryland. AES signed a 15-year contract for a maximum of 70 megawatts of wind power from a project in north-central Pennsylvania.

A vote at the PSC could come as early as Oct. 7.

"I don't know how many utilities in the region can say that they have met their state's aggressive renewable energy goals for the foreseeable decade. I'd really almost put that challenge out there. Delmarva's got a lot to be proud of," said Delmarva spokeswoman Bridget Shelton.

The 24-cent premium was published in 2007 numbers and is expected to increase as time goes by. A second Delmarva consultant pegged the added price of the land-based wind contracts at $1.91 more a month in the year 2016. The first of the land-based wind farms would be up and running as soon as mid-2009.

Each has a date -- between the end of 2009 and the end of 2010 -- after which the developers would have to pay Delmarva damages if they're not working.

Delmarva's proposed contracts for land-based wind power can be cancelled by the developer in the event Congress fails to reauthorize a tax credit for renewable energy projects. However, Delmarva has the right to pay the additional cost that would have been covered by the credit if it wants to keep the contract alive.

The raw cost of the AES contract is $94 per megawatt hour, for energy and renewable energy credits. The two Synergics contracts would cost $83.03 per mwh for energy and REC's in 2010, but that cost increases by half the rate of inflation, not to exceed 2.5 percent annually.

By contrast, the Bluewater Wind offshore project, which Delmarva signed in June, costs $117 per mwh for energy and REC's in 2008 costs, inflating by 2.5 percent per year. It's a 25-year contract expected to begin sometime around 2014.

Although offshore wind is more expensive, it's a more valuable product, said Jeremy Firestone, an associate professor at the University of Delaware. That's because offshore wind turbines produce more energy, at times of day when the electricity is more needed, he said.

Contact Aaron Nathans at 324-2786 or anathans@delawareonline.com.


Source: http://www.delawareonline.c...

AUG 16 2008
http://www.windaction.org/posts/16584-electric-customers-to-pay-24-on-bill-for-wind-projects
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