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Delmarva Power rejects all bids  

While many on the lower shore debated the merits of coal, off-shore wind and natural gas for months, Delmarva Power opted to reject all three.

In a filing with the Public Service Commission, the utility company stated that moving forward with any of the proposals is not in the best interest of its customers. The company’s analysis indicated none of the three proposals offer any savings or price stability and all carry substantial costs, according to a statement released today.

Legislation passed in April 2006 required Delmarva Power to seek bids for long-term contracts from power plants in Delaware, in an attempt to help stabilize the price of electricity. The company received three proposals: a 20- to-25-year contract for a “clean coal” plant from NRG; a 20- to 25-year contract from a wind farm for Bluewater Wind; and a 10-year contract for natural gas from Conectiv, an affiliate of Delmarva Power.

Delmarva Power ranked the three proposals on a point system designed to measure the merits of each bid. The greatest factors were price and price stability, but environmental impact and experience were also considerations, according to officials.

Conectiv scored the highest based on economics and the viability of the project, according to a report on the Public Service Commission’s Web site. Bluewater Wind came in second based on its minimal environmental impact and price stability. NRG ranked third.

“Even though our affiliate, Conectiv Energy, scores best under the system, we do not favor signing a long-term contract,” said Delmarva Power Regional President Gary Stockbridge in a statement. “All of the objectives of the legislation can be met by other means without any of the risks that come with long-term contracts.”

To read the report ranking the bids, visit www.state.de.us/delpsc/irp.shtml.

By Sara Smith
Staff Writer


22 February 2007

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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