Monday, February 11, 2008

Delmarva Power Truth Squad, Part 1

In a new feature, I take a look at some of the nonsense Delmarva Power is spouting about the Bluewater Wind project. Delmarva has an entire section of its corporate website devoted to arguing that it shouldn't have to sign the lawfully negotiated Power Purchase Agreement (PPA) negotiated last year under the RFP process established by HB 6.
Here's the core of the company's argument, helpfully packaged as an effort to "educate" its customers:
First and foremost, it will cost too much. Under the current offer, this proposal could cost customers up to an additional $22 per month on their electricity bills.
$22 a month is a nice scary number. Too bad it's not consistent with the findings of the Public Service Commission staff report. Nor does the number have much to do with the final PPA now on the table.
In other words, Delmarva Power is arguing that we should reject a price that isn't reflected in the deal that was negotiated.
The PSC staff report projects that the PPA would cost the average customer $6.46 a month. But, as I have mentioned in this blog and before the Senate Energy & Transit Committee, that estimate is based on the unlikely assumption that natural gas prices will go down about 20 percent in the next four years. Put another way, we shouldn't have to do anything but wait for our bills to go down, and we should all be as happy as clams. But if natural gas prices go up, as seems much more likely, then the wind power project will save us money over the 25 year life of the PPA.
Conclusion: Delmarva's scary estimate of the cost of wind power is not related to the PSC staff findings, or to any rational guess of where future energy prices are going.


Blogger Unknown said...

Nice precise and accurate explanation of the truth Tommy.Keep up the good work.

9:33 PM, February 11, 2008  
Anonymous Anonymous said...

When greed and politics rule men in public office, one can see why there is global warming, climate changes, acidification of the oceans; one can understand that men would melt polar regions, sink shorelines, change currents, poison seafood, eliminate species, create draughts, forrest fires, famines. If an opportunity of zero emissions, affordable energy for all ratepayers, can be denied by a handful of special interest legislators, is their really any hope for future generations? (ISMurry)

Dang, I wish my writing was as eloquent.

1:25 PM, February 13, 2008  

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