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Delmarva Power is taking advantage of the stall in the state’s charge toward offshore wind power to pursue contract bids with onshore wind providers. The power provider has said it’s wanted to investigate alternatives to Bluewater Wind since negotiations began between the two.
In December, representatives of four state agencies could not reach the necessary consensus to approve a proposed 25-year contract between Delmarva Power and Bluewater for 150 wind turbines off Rehoboth Beach.
For now, the process is at a stand-still as some legislators seek hearings to answer their questions and others push for a resolution to direct the controller general to accept the proposed contract, now tabled.
“We have always said onshore wind was the best option, it was always our intention to investigate it,” said Gary Stockbridge, president of Delmarva Power.
Others question the timing. “Delmarva Power has only recently seen wind as a great thing,” said University of Delaware professor Jeremy Firestone.
Stockbridge announced the move Tuesday, Jan. 22, saying his company was committed to providing customers with renewable energy at the lowest possible cost.
Bluewater Wind spokesman Jim Lanard said, “Bluewater would refer Delmarva Power to the four state agencies’ independent consultant’s report that found a hybrid of Bluewater Wind and Conectiv would cost customers $2.69 more per month. That report should be the basis for discussion and comparison of anything going forward.”
As the negotiations with Bluewater progressed, Delmarva Power increasingly pushed its point that Bluewater’s bid should be compared to bids from other windpower providers for cost comparison.
Stockbridge said in the midst of the negotiating process with Bluewater, Delmarva Power was busy focusing on that contract and therefore unable to investigate other bids. “Now we have the time to get answers on these alternatives while the other offer is tabled,” he said.
“It seems that Delmarva Power is trying to subvert the ongoing administrative process and the ongoing legislative discussion,” said Firestone. He also said the company has been lobbying the legislature to set aside the long-term wind power contract.
Stockbridge said his company is accepting bids of five to 25 years. The company wants bids for the same amount of electricity and renewable energy credits as Bluewater’s offer, said Stockbridge.
Delmarva Power has invested $3.7 million investigating Bluewater’s offer, money it now says was well spent. “We’ve learned a lot over the past year and that enables us to move this quickly,” said Stockbridge. Delmarva Power will have bids from land-based wind providers to review by the middle of March.
Those bids from out-of-state providers should be reviewed by the Public Service Commission and other oversight agencies, Stockbridge said. “We’re not interested in taking unilateral action without everyone’s input,” he said.
“It is unfortunate that Delmarva Power would want to export 500 construction and 80 maintenance and operations jobs out of Delaware and export the environmental benefits of an offshore wind farm to other communities,” said Lanard.
After Delmarva Power rates spiked in 2006, following deregulation, the company was required to negotiate a 25-year contract for a new, Delaware-based power source.
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Resolution to accept wind farm heads to committee
A bi-partisan measure, introduced in the House last week, calls on the Controller General to cast a vote in favor of the Bluewater Wind contract, saying that offer fits all the requirements of the in-state power law and is in the best interests of the state. That resolution is headed to the House Energy and Natural Resources Committee, chaired by Rep. Gerald Hocker, R-Ocean View. Hocker said he anticipates a hearing on the resolution during the General Assembly’s six-week break.
Contact Leah Hoenen at leah@capegazette.com
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