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State Treasurer Jack Markell says the Public Service Commission (PSC) should reconsider a formula for evaluating contracts for long-term energy providers in Delaware.
Markell said based on the formula, the PSC has not done all it can to encourage suppliers of alternative energy or attract supply competitors to Delaware. He said the formula gives almost no weight to environmental impact.
“The state is going out and looking for suppliers,” said Markell, “but the issues of price stability, economic impact and environmental impact should be weighted more heavily. The issue of greenhouse emissions is going to become more important in the future.”
According to the Electric Utility Retail Customer Supply Act of 2006 (House Bill 6), the PSC ordered Delmarva Power to evaluate bids, giving price 33 points out of 100 points, while price stability is awarded only 20 points out of 100.
Markell argues that price stability should be more heavily weighted than price, because a supplier could come in with the lowest price, but it may not be able to offer that price over the long term because of rising energy costs.
Environmental impact is awarded only four of 100 points, which Markell says is unfortunate. As time goes on, environmental impact will be more important for the residents of Delaware, he said.
“The weighting has not been designed with the reality of economics and environmental impact in the future,” said Markell. “When you weight these more heavily, there is a better chance for alternative energy.”
Markell said the legislators, who set this up in the first place, should get involved, as should the citizens. He said it is an important issue for everyone in Delaware because whichever supplier receives the long-term contract through Delmarva Power will be setting the stage for decades, in terms of energy and the environment. Markell said he hopes citizens begin using alternative energy by putting solar panels on their houses and supporting wind-power initiatives.
“There is no environmental impact with solar or wind,” said Markell. “I hope the Public Service Commission reconsiders their weighting.”
Alternative energy
As the cost of electricity rises throughout the nation, researchers and scientists have begun to explore using alternative energy sources as competitors for coal and natural gas.
Willett Kempton, a professor at the University of Delaware, is on the leading edge of wind studies. He said wind energy is a viable source of energy and that wind farms could provide sustainable and environmentally friendly energy when built off the Delaware Coast.
One company competing for a long-term Delmarva Power contract is Bluewater Wind of New York, which hopes to build windmills 6.6 miles off the Delaware coast, where, company officials say, they would appear only about the size of a thumb nail.
A recent study by scientists at Stanford University plots wind power potential on a map, showing where wind farms would be most beneficial. The scientists say that harnessing just 20 percent of the wind’s energy could produce eight times more electricity than the world used in 2000.
“The main implication of this study is that wind, for low-cost wind energy, is more widely available than was previously recognized,” said Cristina Archer, formerly of Stanford’s Department of Civil and Environmental Engineering.
Archer and colleague Mark Jacobsen collected wind-speed measurements from 7,500 surface stations and 500 balloon-launch stations to determine wind speeds at 300 feet, the height of modern turbines.
They found that 13 percent of the stations in all regions of the world were able to generate power.
North America had the greatest potential for wind energy with consistent winds found in the Great Lakes region and along both the northwestern and northeastern coasts, including Delaware.
Solar energy use increasing
Over the past five years, wind energy use has grown by 34 percent, but it still accounts for only 0.54 percent of electricity used.
Solar power has surpassed wind power as the fastest-growing energy source, according to a report released by the Worldwatch Institute. The report shows that sales of solar cells increased by 40 percent last year. But, while the 800 megawatts of solar in place around the world could power 200,000 homes, wind power’s 7,630 mega watts in place could power 1.9 million homes.
According to the National Renewable Energy Laboratory, a 100-square-mile patch of solar panels in Nevada, where the sun rays are powerful, could generate all the electricity needed in the United States.
Contact Rachel Swick at rswick@capegazette.com
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