Let’s just start. Accusation #1: The Public Service Commission and two state agencies exceeded the law, distorted bidding rules, overlooked risks and ignored cheaper alternatives before endorsing a proposed offshore wind project, according to a recently obtained draft Senate report.

Hmm. Well….are you familiar with the law in question? That is HB06 from the 143 Legislature’s Session. Let’s look at it so we can perhaps see what they are talking about….. Gee, I wonder who the sponsors were?………. Primary Sponsor: Valihura………………. Additional Sponsor(s): Sen. Adams & Rep. Spence & Rep. Smith & Rep. Lee & Rep. Gilligan & Rep. VanSant & Sen. McDowell & Sen. DeLuca & Sen. Still & Sen. Sorenson.

If you wish, you can cross reference my quotes against the actual HB06 which is here. That will allow me to cut out some of the unnecessary words that make reading these bills so tedious for most people. Let’s begin our defense… at the Synopsis. By definition, a synopsis is a brief statement summarizing what the bill is about…… In HB06 we learn from the synopsis that this bill is designed to stabilize electricity pricing and utilization for Delaware consumers for both the short term and for the long term.

Going with Bluewater Wind does that. It guarantees power at roughly $105 dollars per megawatt with all charges ( REC’s and capacity) bundled together. Delmarva at the beginning of last month was only able to acquire bids as low as $110 dollars per megawatt inclusive of all charges. In case you missed the significance, Bluewater Wind will be cheaper in 2039 than Delmarva is now….There is no baloney. That is the number on the legal document hammermeshed between Bluewater and Delmarva.

So when we read from the law sponsored by Adams, DeLuca, and McDowell that we need to stabilize electricity pricing and utilization for Delaware consumers for both the short term and for the long term and understand that right now, already Delmarva cannot compete in price against Bluewater Wind,…… we have not choice but to conclude that Bluewater Wind complies with the law, and Delmarva Power does not.

In fact, continuing to pursue Delmarva’s path is A DIRECT VIOLATION OF THAT LAW AS IT WAS WRITTEN. Ladies and Gentlemen: I give you Exhibit A. as we build the case that Delmarva Power has, is, and continues to remain in conflict with the law as it is written, and that only in conjunction with Bluewater Wind, can it be compliant.

Moving on:

This Act allows electric distribution companies, subject to the Public Service Commission’s approval, to own and operate facilities enabling them to generate their own electricity for supply to customers and authorize those electric distribution companies to obtain supply in ways that are not necessarily reflective of short-term regional market prices (such as long-term contracts and self-generation)

This bill sponsored by Adams, Deluca, and McDowell specifically states that its intent is to allow for electric generation locally and provide a hedge against short-term regional market prices by acquiring LONG TERM CONTRACTS.

Delmarva has balked at signing long term contracts with anyone who is not part of Pepco Holding. By not signing long term contracts Delmarva is again violating the letter of the law. Delmarva insists that it can get wind energy onshore from other states. That does nothing to fufill HB06’s requirement that electrical energy be generated locally. Once again, Bluewater fulfills the letter of the law. Once again, Delmarva seeks to violate it. Ladies and Gentlemen, I give you Exhibit B. I would ask that you remember that are building a case that Delmarva has, is, and will continue to remain in conflict with HB06 as it is written, and that only in conjunction with Bluewater Wind, can it be compliant.

Ok, the next step.

To stabilize long-term pricing in the DP&L service territory, the Act provides for a request for proposals through a competitive process to build cost-effective merchant generation in the State, to be utilized to serve some of the load requirements of DP&L.

This is just what the PSC did with Bluewater Wind. If one remembers, it was little over a year ago, that Connectiv put in their bid for a gas fired turbine that would be located in McDowell’s district, thinking they had it all to themselves. Surprising them, NRG placed a bid for a clean coal plant, and just as the deadline approached, Bluewater Wind applied as well. Did we get bids from wind farms in Indiana, Illinois, Pennsylvania, and Maryland that were not even proposed yet? ……..No. No one thought to place a bid from wind farms that “were not there yet” In fact iit never crossed anyones mind, not even McDowell‘s at the time. Even to this day, those alleged onshore wind farms are not built and cannot supply one bit of electricity to our grid. The real question is not whether we can parse and quibble about what we could-, would-a, or should have done. The only question that bears any relevance to these hearings, is whether the PSC broke any law? No! they did not. They opened up a bidding process with an announced closing date; accepted all bids that arrived within the window allowed, and held hearings where the public could comment and discuss what they thought was best for them. Bluewater follows the letter of the law to a tee. The process was competitive. They, at $105 dollars a megawatt, are the lowest cost producer of energy in this state’s foreseeable future. and their low costing power will serve some of the load requirement of Delmarva Power. Comparatively, by having Delmarva bid on the market, we, its customers, will be forced to weather every economic storm or bubble, creating instability in our energy market, destroying any residual profit margin left it today’s businesses. Ladies and Gentlemen: I leave you with Exhibit C.

Onward.

The Act continues to allow customers to choose alternative competitive suppliers. I choose Bluewater Wind, but Delmarva won’t sign me up, again, breaking the law as it was written in HB06. That concludes our analysis of the Synopsis. It would be wise to remember that as accusations come out from a few in the Senate, stating that “The Public Service Commission and two state agencies exceeded the law, distorted bidding rules, overlooked risks and ignored cheaper alternatives before endorsing a proposed offshore wind project,” that a quick look over the text, shows the exact opposite. Bluewater Wind complies with the law as it is written. Delmarva by fighting them….does not. Likewise according to this: In addition to the standard offer service price or the alternative electric supplier’s supply price, each customer shall pay the separate applicable rates for transmission, ancillary, distribution, nuclear decommissioning and other services. Such rates shall not include any generation or electric supply costs. This states that we will pay separately, each and all these charges such as transmission costs, from far away onshore wind, but not…..from our local Bluewater Wind turbines. OK, so here is the meat.

2. In developing the IRP, DP&L may consider the economic and environmental value of:

(i) resources that utilize new or innovative baseload technologies (such as coal gasification); (

ii) resources that provide short- or long-term environmental benefits to the citizens of this State (such as renewable resources like wind and solar power);

(iii) facilities that have existing fuel and transmission infrastructure;

(iv) facilities that utilize existing brownfield or industrial sites; (

v) resources that promote fuel diversity; (vi) resources or facilities that support or improve reliability; or

(vii) resources that encourage price stability. If one takes it line by line, one can see that Bluewater Wind fulfills the letter of the law. In fact Bluewater does a much better job at complying with the law, than does Delmarva Power. Its time the truth be known: that Harris McDowell’s claim has not a leg to stand on……….

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