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Delaware Wind Issue

Wind Solutions for Delaware

 

Frequently Asked Questions

Question:  Are you committed to wind energy?

Answer:  Yes. In fact, we are soliciting competitive bids from a number of regional wind developers to ensure we get our customers the best price for this renewable resource.

Question:  When will you know the results?

Answer:  We should know this spring what it will cost to ensure a portion of our customers’ energy supply comes from clean, reliable, affordable wind energy.

Question: Will you be able to get enough wind power to meet the need?

Answer: Yes, because we will be pursuing contracts with a number of wind developers. You see, depending too much on any single project by one developer increases the risk. If something were to go wrong with that project, we would have too many eggs in one basket.  With multiple projects and, perhaps, several developers, you can spread out the risks.  We plan on developing such a portfolio from the resulting bids.

Question:  I heard there is too much demand for wind energy in the region, and therefore, the supply is limited. Is this true?

Answer:  We don’t believe so. That is why we’re soliciting a variety of wind power developers. There are a variety of projects under way and others planned for the future. And as the wind power industry develops, we believe, as with all goods and services, the market will respond to the growing demand.

Question:  But if Delmarva Power buys from a wind farm outside Delaware, does that mean those construction jobs would not benefit Delaware’s economy?

Answer: Our plan to keep down the costs customers pay for wind power – by conducting a competitive bidding process -- would keep more money in the hands of our customers than any jobs pledge offered by the existing offshore wind proposal. We believe we can save consumers about $50 million a year compared to the existing 25-year contract proposal. And this savings would have a much more favorable impact on the state’s overall economy

Question:  Will you be considering long-term contracts with these onshore wind developers?

Answer: We are considering terms ranging from five to 25 years.

Question:  Are you against offshore wind?  Why have you fought this plan?

Answer:  Wind is one of the most promising sources of future renewable energy.  We just believe the existing offshore proposal costs too much and that we can get better prices for our customers by conducting a competitive buying process that allows wind developers from across the region to bid. We also plan to look at other sources of renewable energy, such as solar. Delmarva Power must evaluate all the options for clean, reliable, affordable energy for our customers.

Question: Why should I believe that Delmarva is really concerned about my rates?

Answer: Most people recall the impact rising fuel costs had on Delmarva’s electricity rates when a nearly seven-year rate cap expired in 2006. Since then, we’re pleased to say that rates have remained stable. And we want to keep it that way. For that reason – and only that reason – we support renewable energy at the least cost to our customers.

Question:  I have heard talk about a “green” optional program – what is that?

Answer:  Delmarva is committed to meet the state’s renewable energy requirements at the least cost to its customers. We do, however, also recognize that our customers should have the ability to buy and use more renewable energy than is required. That’s why our plan also proposes a “green” optional program for our customers who want a greener, cleaner Delaware.





The Facts

  • Delmarva Power has been a strong supporter of the state’s renewable energy goals

  • This is not a debate about using coal, gas or oil versus green alternatives – it is about what green alternatives we select.

  • Delmarva Power is not against wind – we were the first to recommend land based wind to meet our renewable goals in 2006.

  • The costs for this project would be paid by our customers – this is not about protecting the company – it is about protecting the customers we serve.

  • Although it is true we have not supported the Bluewater Wind proposal, we have negotiated in good faith, as attested to by the independent observer appointed by the State.