NRG wants backup plant in Sussex

NRG Energy says it has no interest in building a wind farm off the Delaware coast.

It is, however, interested in building a natural gas plant to back up that wind farm, and wants the state to insist that plant be built in Sussex County.

Last month, four state agencies rejected NRG's proposed coal gasification plant proposal in favor of Bluewater Wind's proposed offshore wind farm. Bluewater is negotiating a power-purchase agreement with Delmarva Power. Amid soaring electricity prices, the state has been accepting bids from energy companies to build a homegrown source of power.

The agencies also allowed NRG and Conectiv Energy to compete to provide Delmarva with backup power from a proposed natural gas-fired plant.

About two weeks ago, Conectiv filed a motion for the state agencies to reconsider their decision.

Conectiv originally wanted to build a natural gas plant at its Hay Road facility on the edge of Wilmington in New Castle County. The company argues the agencies should have chosen that facility because it won the highest score from a state consultant.

Conectiv also argued it, along with NRG, should have the right to submit a wind farm bid to compete with Bluewater's.

In comments filed with the agencies this week, NRG's attorney, Michael Houghton, wrote that NRG "has no interest" in bidding on building the wind farm.

"Bluewater Wind LLC has undertaken the risk and invested the effort in such a project and NRG [which is in the wind power business] could have, but chose not to submit such a bid and will not do so now. It is time to move on to address the issues of concern to Delaware," Houghton wrote.

NRG currently does not own a wind farm, but its California subsidiary, Padoma Wind Power LLC, is in the process of building wind farms in two states.

NRG does, however, "take exception" to a June 18 filing by the Public Service Commission staff, which argues the state agencies' decision still allows Conectiv to make a case that its Hay Road site can provide a reliable source of backup power.

Houghton replied that the state agencies' order "leaves open no such possibility," and asked the agencies to "reaffirm" that any proposal for backup generation be located in Sussex County.

The wind farm would be located off the coast of Rehoboth Beach or Bethany Beach, both in Sussex County. State officials have cited the need to improve electricity reliability in the area.

The order issued by the state agencies on May 22 reads: "NRG's bid proposal may compare favorably due to NRG's pre-existing location in Sussex County, obviating the need to site a new power plant outside of an existing brownfield."

Conectiv isn't the only party challenging the negotiations. Delmarva has filed suit in Sussex County Superior Court, claiming a power-purchase agreement could harm its customers by making them pay too much.

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