HOUSE OF REPRESENTATIVES
144th GENERAL ASSEMBLY
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HOUSE Bill NO. 361 |
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REQUIRING THE CONTROLLER GENERAL VOTE TO APPROVE THE POWER PURCHASE AGREEMENT BETWEEN BLUEWATER WIND AND DELMARVA POWER WITHOUT WAITING FOR CONFIRMATION FROM THE SENATE, NOR AWAITING A VOTE OF APPROVAL FROM THE MEMBERS OF THE LEGISLATIVE COUNCIL. |
WHEREAS, House Bill 6 of the 143rd General Assembly (the Electric Utility Retail Customer Supply Act of 2006), signed into law by the Governor on April 6, 2006, establishes a process for procuring a new energy source based in Delaware; and
WHEREAS, House Bill 6 set forth the criteria for selecting a new energy generating source, including the cost-effectiveness of the project in producing energy price stability, reduced environmental impact, the benefits of adopting new and emerging technology, siting feasibility and the terms and conditions concerning the sale of energy output from such facilities; and
WHEREAS, the Public Service Commission, the Director of the Office of Management and Budget, the Energy Office and the Controller General were given authority under House Bill 6 to select a bidder; and
WHEREAS, the Request for Proposal issued under House Bill 6 established a competitive process in which three proposals for power were submitted, an IGCC coal power facility, a new natural gas facility and an offshore wind power facility, all of which were reviewed and evaluated; and
WHEREAS, on May 22, 2007, the Public Service Commission, the Director of the Office of Management and Budget, the Energy Office and the Controller General directed that Delmarva Power enter into negotiations with Bluewater Wind to build an offshore wind power facility in Delaware, and to submit a term sheet outlining the major provisions of an agreement; and
WHEREAS, on November 20, 2007, the Public Service Commission, Office of Management and Budget, the Energy Office and the Office of the Controller General held a hearing on the Bluewater Wind term sheet and directed Delmarva Power and Bluewater Wind to submit a Power Purchase Agreement for consideration on December 18, 2007; and
WHEREAS, the negotiations that were held between November 20, 2007, and December 10, 2007, resulted in a more favorable agreement from the perspective of Delmarva residential ratepayers than was embodied in the term sheet; and
WHEREAS, the negotiations have produced a Power Purchase Agreement to build and operate in Delaware the nation’s first offshore wind power facility; and
WHEREAS, the Public Service Commission staff report finds that the Power Purchase Agreement meets the criteria established by House Bill 6, including price stability, reduced environmental impact, and the use of new technology; and
WHEREAS, operation of the proposed offshore wind farm would provide jobs for Delawareans and make Delaware a leader in a new industry at a time when manufacturing jobs are disappearing; and
WHEREAS, construction of the proposed offshore wind power facility would make a significant contribution to a reduction in greenhouse gas and toxic pollution emissions; and
WHEREAS, citizens of Delaware have offered thousands of comments and letters in favor of the proposed wind power facility; and
WHEREAS, the Public Service Commission, the Director of the Office of Management and Budget, the Energy Office and the Controller General did not act on the Power Purchase Agreement because of the lack of a consensus among the four entities; and
WHEREAS, approval of the Power Purchase Agreement would endow Delmarva Power’s customers with protection against future price increases and price volatility due to the rising cost of electricity produced from fossil fuels and international political uncertainties.
WHEREAS, the Delawarean House of Representatives on April 11th approved in a non-partisan vote by a margin of 25 to 11, HCR38, which recommends that the Controller General add his signature, along side of the others, to the Power Purchase Agreement agreed to by both Delmarva and Bluewater Wind.
WHEREAS, all members of the House of Representatives currently serving have been elected within the past span of two years, and all who wishing to be re-elected, must face public scrutiny this election season, their vote can be deemed more representative of Delaware’s needs then those of the Senate, with two thirds of its members NOT up for re-election this term.
WHEREAS, House Bill 6 of the 143rd General Assembly (the Electric Utility Retail Customer Supply Act of 2006), signed into law by the Governor on April 6, 2006, gives the Controller General the authority to act independently of the Senate when making his decision, and does not require him to be beholden to one member, or a small group of member’s narrow interests.
WHEREAS, Delaware Code Title 29, Chapter 11, Subchapter 10, gives the Controller General the authority to perform any analyses necessary, to determine operational efficiency and effectiveness, compliance with the laws of Delaware and legislative intent; the Delaware House of Representatives has determined by a vote of 25-11 on April 11th, 2008, exactly how that legislative intent behind House Bill 06 of the 143rd Legislative Session, should be interpreted by the Controller General.
NOW THEREFORE:
BE IT RESOLVED by the House of Representatives of the 144th General Assembly of the State of Delaware, that it is the binding resolution of the General Assembly that even without the Legislative Council’s approval, the Controller General shall vote to approve the Power Purchase Agreement between Bluewater Wind and Delmarva Power because, in the opinion of the majority of the General Assembly, the proposed wind power facility meets the criteria established by House Bill 6 of the 143rd General Assembly and is in the best interests of the citizens of this State;
SYNOPSIS
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This Concurrent Resolution requires that the Controller General vote to approve the Power Purchase Agreement between Bluewater Wind and Delmarva Power because, in the opinion of the majority of the General Assembly, the proposed Power Purchase Agreement meets the criteria set forth in House Bill 6 of the 143rd General Assembly and is in the best interests of the citizens of this State. This Concurrent Resolution further requests that the Public Service Commission may at some later time, determine if the costs for the Bluewater Wind contract should be distributed among all Delmarva Power customers. |
kavips 
8 comments
Comments feed for this article
April 13, 2008 at 12:33 pm
kavips
Special nod to Tommy.
April 13, 2008 at 3:42 pm
Tyler Nixon
Amen.
April 13, 2008 at 5:41 pm
J Austin
“So let it be written. So let it be done.”
April 13, 2008 at 9:27 pm
Nancy Willing
We need to get Willet to weigh in on the new DE GOP mantra that first came from Copeland and now from Ron Williams saying that a regional entity would get support from the feds.
Willet’s original vision was that Delaware stood to make a billion a year if we had a maximum capacity of wind farming off of our shores. That was because we would be in a position to lease the ground and possibly have some kind of investment agreement with the energy producers. I wasn’t very clear on how we were going to benefit at this scale but Willet was.
The year long secret negotiations that promised something for everyone (read NRG and PEPCO) left us with what is now problematic for so many.
To go the route suggested by these GOPerheads seems to me to have lost the financial incentives altogether that were originally part of the deal as it was explained to me in a Progressive DEM meeting some years ago.
Sure, we need some federal dollars in off shore wind to compete with their subsidy of nuclear power proponents (read GE etc) getting poised to put plants along the PEPCO regional grid south. But do we need to ruin our state’s financial advantage to serve the stockholders of PEPCO?
April 14, 2008 at 11:16 pm
thewayout
I don’t understand why Delaware politicians would even think of giving away the economic and financial advantages of its own offshore wind resource to other states. Didn’t Delaware’s Delmarva Power customers just get wind (:)) of the $5 million bill they will be paying for the last 15 months of expenses by that company, to fight against the wind bid? Fancy lawyers, radio ads every 20 minutes, we’re paying for it. Start yelling people! Haven’t taxpayers been hit with McDowell’s huge bill for his hearings, too? So now Copeland and others want to give away the advantages? This is worse than stupid. It’s malfeasance in public office.
April 15, 2008 at 7:55 am
kavips
Indeed it is. Which is why we seriously need a bill on the House floor that has a possibility to pass, which denies the PSC from granting rate increases anticipated to cover this advertising purchase.
Heck, we can’t afford our gas, rice, corn, bread, and we now have to pay for these funky ads?
As long as they are paying for it, they have their rights. But by having their rates set and approved by the PSC, so that they are guaranteed a 4% profit, means just what your claim. We will be paying for it.
Which means…… we need to sign the Bluewater Deal as soon as possible, for without Bluewater’s cheaper energy applying downward pressure to the rates of our fossil fuel generators, we can never afford the new price of their kilowatts.
January 8, 2009 at 1:10 pm
is it wrong for a government to impose the people’s will upon a business? « thinking out loud . . .
[…] know the background of this particular post, but evidently the legislature Delaware were trying to force two companies to work together to build an offshore, wind-driven power […]
March 29, 2013 at 1:58 pm
Is it wrong for a government to impose the people’s will upon a business? | Thinking Out Loud
[…] know the background of this particular post, but evidently the Delaware legislature was trying to force two companies to work together to build an offshore, wind-driven power […]