For Immediate Release
Company Soliciting Proposals From Across the Region
NEWARK, DE - Delmarva Power, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), today began seeking bids from onshore wind power providers from across the region in a process to obtain competitively priced renewable energy for its Delaware customers.
Delmarva Power supported state legislation in 2007 requiring that 20 percent of the energy supplied to its customers by 2019 be from renewable sources. Thus far only a long-term offshore wind proposal has been explored to meet this goal. That proposal for a 25-year contract, according to a review by state agencies, would require customers to pay "a 45% premium for offshore wind generation over onshore wind generation."
Dennis Wraase, Chairman and Chief Executive Officer of Pepco Holdings Inc., sees significant potential benefits for customers. "I look forward to Delmarva Power working with the State of Delaware in becoming leaders in providing customers with this most promising type of renewable energy," Wraase said. "Onshore wind power presents a great opportunity for the state and the customers of Delmarva Power."
The first step in this new initiative to best manage consumers' renewable energy costs is to solicit interest from wind power developers within the region. "We look to buy both renewable energy credits (RECs) and energy for terms from 5 to 25 years," said Gary Stockbridge, President of Delmarva Power. "We will have results in hand by March that can be compared to the existing offshore proposal. We expect to see significantly lower costs, the same environmental benefits, far less risk, even more stability than with offshore wind power, and be able to provide this power years ahead of any offshore project," Stockbridge said. This request for competitive onshore wind bids is part of Delmarva Power's Integrated Resource Planning process, which began in 2006.
In addition to land-based wind, Delmarva Power expects to follow up with requests for proposals from other sources of renewable supply such as solar energy.
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to about 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware .