Wind Power

In a bold move in May, several Delaware state agencies took decisive action that may result in the construction of what may be the nation’s first major off-shore wind power “farm” which is to be sited seven or more miles off the coast of Delaware.

Due to a recent 59% rate hike in electricity rates when post-deregulation rate caps ended in Delaware, the General Assembly passed legislation last year requiring the Public Service Commission (PSC), the Controller General, the Department of Natural Resources and Environmental Control’s Energy Office, and the Delaware Office of Management and Budget to look at ordering new sources of electric generation in the state that would provide affordable, price stable, and environmentally friendly power in Delaware.  The PSC took the lead, issuing a Request for Proposal for projects that would fit its regulatory requirements.  One bidder, Bluewater Wind, LLC, submitted a proposal for an  off-shore wind farm consisting of 200 wind turbines.   The Center, on behalf of itself and Clean Air Council, submitted comments  to the agencies in February insisting that the environmental criteria be given appropriate weight in the analysis and indicating strong support for the wind farm as a better solution than coal gasification or natural gas power, the other two proposals.  In March, the Center gave testimony at a PSC public hearing, further developing our concerns.  In May, the PSC voted in favor of  a scaled back Bluewater Wind farm of 100 turbines.  Later in the month, at a joint meeting of the  agencies, the Center and other public interest voices offered additional testimony urging adoption of the vote without major changes sought by NRG Energy, a rejected bidder that had sought to build a large new generation coal facility.  The PSC’s written order with minor changes was then adopted by all four agencies.  The Order directs Delmarva Power & Light, the electric utility that owns the electrical grid in Delaware, to negotiate a contract with Bluewater Wind for the construction and pricing of power from the  wind farm.  The Order also directs Delmarva to negotiate with another power provider to construct a small natural gas back-up power plant in Southern Delaware.

While the outlook appears bright, the possibility of failed negotiations could be an obstacle to this remarkably positive step toward sustainable energy policy.  The Center intends to remain engaged at the PSC to help the environmental community and all the people of Delaware obtain the environmental and economic benefits of this inexhaustible power supply.