Proposal Adjustments Jeopardize Delaware Offshore Project

NAW Editors, Tuesday 30 October 2007 - 01:00:00

The Delaware Public Service Commission (DPSC) will not recommend that state agencies sign power purchase agreements for Bluewater Wind LLC's wind facility 11.5 miles off the coast of Rehoboth Beach in southern Delaware, according to DPSC's Oct. 29 report on proposals to sell power to Delmarva Power.

"Although [we] would like to be part of the effort to pioneer offshore wind power to take control of Delaware's energy future, such a recommendation is - at this time - not in the public interest and is not consistent with the underlying principles of the Electric Utility Retail Customer Supply Act of 2006," DPSC staff writes. About Bluewater's proposal, the staff adds, it "is not the same project that Bluewater proposed in its initial bid received and previously reviewed by the [independent consultant]." Specifically, the staff cites an initial $5.48 per MWh increase for customers, with an estimated potential $48.77 per MWh increase based on historical escalation of proposed indices and a possible two-year delay in financial closing.

In its updated proposal, Bluewater reduced the capacity of the offshore wind facility by 150 MW, in response, according to the DPSC's report, to state agencies' direct order.


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