Monday, August 06, 2007

Wind Power Is On the PSC's Agenda Tomorrow

The Public Service Commission (PSC) meets tomorrow at 1:00 PM in Dover. The PSC's deliberations on agenda item 7 (concerning the negotiations to bring wind power to Delaware) will include the following:
(1) The PSC will hear a report from mediator Lawrence Hamermesh on the negotiations. This will be the real news.
(2) The PSC will act on draft Order 7247 which, as written, would deny Jeremy Firestone's motion to require more detailed reports on the negotiations. Even though I have thought that this motion makes sense, I am not greatly concerned about the PSC's decision on this. Given that the PSC has directed Delmarva Power to negotiate an agreement to bring wind power to Delaware, I am inclined to give the Commission the benefit of the doubt as to how its mandate is carried out.
(3) The PSC, along with DNREC, the Controller General and the Office of Management and Budget, will act on draft Order No. 7246 to deny the appeal by Conectiv Energy (CESI) asking to allow the company to submit its own wind power proposal. The draft Order on this point is not kind to Conectiv:
[PSC] Staff asserted that both NRG and CESI had the opportunity to submit a wind proposal in December 2006 pursuant to the terms of the RFP but did not do so. Staff characterized CESI’s recent interest in submitting a wind proposal as a desperate last-minute attempt to stall the current negotiations. Staff warned that delaying the negotiations could hinder Delaware’s attempt to diversify its energy supply, prevent an informed decision on the generation bids, and waste millions of dollars already spent in the process.
It's no secret that the PSC and its sister agencies have taken a dim view of Conectiv's attempt to reopen the RFP process and drag out the negotiations. (Delmarva Power's appeal to Superior Court
of the PSC's decision has been put on hold pending at least a cursory attempt at negotiating a deal to bring wind power to Delaware.)
The sharp language found in the draft Order underscores the degree to which the state agencies have lost patience with the machinations of Delmarva Power, Conectiv Energy and their parent company, Pepco Holdings.
I will have more to report tomorrow.

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