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CapeGazette.com - Covering Delaware's Cape Region | 302.645.7700
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Cape Gazette
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2/16/07
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Power generation system decision
likely to be delayed

By Rachel Swick
Cape Gazette staff

The looming decision over the future of power generation in Delaware may not be so looming after all, as talk of postponing the decision circulates through Dover.

Members of the Public Service Commission (PSC) are in no rush to make one of the largest decisions they have ever been confronted with: the choice of Delaware’s future power provider.

The decision was expected at a commission meeting scheduled Tuesday, Feb. 27. But Bob Howatt, public utilities analyst for the PSC, said Feb. 13 that the commission may push its decision on the state power contract into May.

Howatt said Feb. 27 is the earliest date a decision could be made, but a decision at that meeting is not likely, because the commission has requested two reports on the proposal that won’t be available until Friday, Feb. 23.

The commission requested bid proposals for a new state contract with Delmarva Power to provide energy for the state. The parties that will make the decision - the Public Service Commission, Controller General’s Office, Delaware Department of Natural Resources and Environmental Control and Office of Management and Budget - may want more time to consider whether they would rather give a long-term contract to NRG Energy, Conectiv or Bluewater Wind.

The two top contenders for the power contract are NRG Energy, owners of the Indian River Power Plant in Millsboro, which submitted a proposal for a coal gasification plant; and Bluewater Wind, a New York- and New Jersey-based company that would build an offshore wind farm. The third proposal, from Conectiv, is for a natural gas plant that could be built in Wilmington.

The PSC requested evaluator reports on all three proposals from Delmarva Power officials and from an independent state consultant. These reports are expected to be returned to the commission by Feb. 23, Howatt said. But commissioners expect they will need more time to thoroughly review the evaluations before making a decision, and Howett said they want to allow for public comment on the reports. He also said the decision could be made at any time after the Feb. 27 meeting.

The bids expire in June, said Howatt, so the decision will have to be made before then.

Contact Rachel Swick at: rswick@capegazette.com

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