WHEREAS, House Bill 6 of the 143rd
General Assembly (the Electric Utility Retail Customer Supply Act of 2006),
signed into law by the Governor on April 6, 2006, establishes a process for
procuring a new energy source based in Delaware;
and
WHEREAS,
House Bill 6 set forth the criteria for selecting a new energy generating
source, including the cost-effectiveness of the project in producing energy
price stability, reduced environmental impact, the benefits of adopting new and
emerging technology, siting feasibility and the terms and conditions concerning
the sale of energy output from such facilities; and
WHEREAS,
the Public Service Commission, the Director of the Office of Management and
Budget, the Energy Office and the Controller General were given authority under
House Bill 6 to select a bidder; and
WHEREAS,
the Request for Proposal issued under House Bill 6 established a competitive process
in which three proposals for power were submitted,
an IGCC coal power facility, a new natural gas
facility and an offshore wind power facility, all of which were reviewed and
evaluated; and
WHEREAS,
on May 22, 2007, the Public Service Commission, the Director of the Office of
Management and Budget, the Energy Office and the Controller General directed
that Delmarva Power enter into negotiations with Bluewater Wind to build an
offshore wind power facility in Delaware, and to submit a term sheet outlining
the major provisions of an agreement; and
WHEREAS,
on November 20, 2007, the Public Service Commission, Office of Management and
Budget, the Energy Office and the Office of the Controller General held a
hearing on the Bluewater Wind term sheet and directed Delmarva Power and
Bluewater Wind to submit a Power Purchase Agreement for consideration on
December 18, 2007; and
WHEREAS,
the negotiations that were held between November 20, 2007, and December 10,
2007, resulted in a more favorable agreement from the perspective of Delmarva
residential ratepayers than was embodied in the term sheet; and
WHEREAS,
the negotiations have produced a Power Purchase Agreement to build and operate
in Delaware the nation's first offshore wind power facility; and
WHEREAS,
the Public Service Commission staff report finds that the Power Purchase
Agreement meets the criteria established by House Bill 6, including price
stability, reduced environmental impact, and the use of new technology; and
WHEREAS,
operation of the proposed offshore wind farm would provide jobs for Delawareans
and make Delaware a leader in a new industry at a time when manufacturing jobs
are disappearing; and
WHEREAS,
construction of the proposed offshore wind power facility would make a significant
contribution to a reduction in greenhouse gas and toxic pollution emissions;
and
WHEREAS,
citizens of Delaware have offered thousands of comments and letters in favor of
the proposed wind power facility; and
WHEREAS,
the Public Service Commission, the Director of the Office of Management and
Budget, the Energy Office and the Controller General did not act on the Power
Purchase Agreement because of the lack of a consensus among the four entities;
and
WHEREAS,
approval of the Power Purchase Agreement would endow Delmarva Power's customers
with protection against future price increases and price volatility due to the
rising cost of electricity produced from fossil fuels and international
political uncertainties.
NOW
THEREFORE:
BE
IT RESOLVED by the House of Representatives of the 144th General Assembly of
the State of Delaware, the Senate concurring therein, that it is the
recommendation of the General Assembly that the Controller General vote to
approve the Power Purchase Agreement between Bluewater Wind and Delmarva Power
because, in the opinion of the majority of the General Assembly, the proposed
wind power facility meets the criteria established by House Bill 6 of the 143rd
General Assembly and is in the best interests of the citizens of this State;
and
BE
IT FURTHER RESOLVED that the Public Service Commission is hereby requested to determine
if it is in the public interest to distribute costs for the Bluewater Wind
contract among all Delmarva Power customers consistent with its authority set
forth in House Bill 6 of the 143rd General Assembly.
