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Delmarva Power balks at wind proposal
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Delmarva Power said a proposed 150-turbine wind farm poses extra costs and risks for its customers, setting the stage for a potentially contentious review by state officials who had hoped to move quickly toward a final contract.
Although its numbers were similar to those Bluewater Wind released on Thursday, Delmarva said there were many areas where the two companies had not reached agreement, including the start date, as well as the amount of energy provided in any given hour. The terms were included in a document Delmarva Power released Friday.
In a cover letter signed by Delmarva Power attorney Todd Goodman, the company argued “the best offers proposed by the bidders pose unacceptable costs and risks on Delmarva’s electric customers.”
The “term sheets filed today represent the bidders’ best offers and do not represent final agreements between Delmarva Power and any of the bidders,” Delmarva Power wrote in a statement.
Bluewater and Delmarva Power are negotiating the terms of a long-term power supply contract in which Bluewater is proposing a 150-turbine wind farm for federal waters off the coast of Rehoboth Beach.
State agencies had demanded terms and conditions of the power-purchase agreement by Friday. Public Service Commis-sion Executive Director Bruce Burcat said he would not comment on the term sheets until next month.
The PSC will review the terms and with three other state agencies decide whether to direct Delmarva to sign an agreement.
Delmarva’s position was a letdown for Bluewater.
“We’re disappointed that Delmarva has not agreed to more terms that we’ve negotiated for over three and a half months,” said Bluewater Wind spokesman Jim Lanard. Bluewater is committed to resolving the outstanding differences, and is willing to get back into the negotiating room next week, he said.
“Contrary to what Delmarva has said in its filing today, the Bluewater Wind prices in the term sheet will result in great benefits to Delmarva’s ratepayers,” Lanard said.
Meanwhile, there appeared to be fewer areas of contention for the natural gas plant proposals by NRG Energy and Conectiv Energy to back up the wind farm on days the wind doesn’t blow as hard.
After insisting it wanted to build its natural gas plant in New Castle County, Conectiv provided a plan more in line with what state officials were suggesting: a plant in western Sussex County.
By Aaron Nathans
The News Journal
17 September 2007
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