Press Release – March 23, 2017
Delaware Senate Majority Caucus
For immediate release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945; or
Mat Marshall (302) 577-8897 or (302) 744-4180
Delaware Senate Majority Caucus
For immediate release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945; or
Mat Marshall (302) 577-8897 or (302) 744-4180
PJM reps testify before legislative panel
Committee seeks fair deal for Delaware ratepayers
The Regional Legislative Electric Transmission Cost Equity Committee—a bi-partisan, bi-cameral panel of legislators led by the chairs of the House and Senate Energy committees—convened Thursday morning to hear testimony from representatives of PJM Interconnection on an proposal that asks Delawareans to foot the nine-figure bill for an electric transmission line that would primarily benefit New Jersey ratepayers.
The project—which was temporarily suspended eight months ago after Delaware and Maryland officials widely decried itslopsided cost allocation formula and spiraling budget—would build a 230 kilovolt transmission line from Delaware to New Jersey’s Artificial Island, which proponents of the project say will help improve overall stability in the regional power grid.
Sen. Harris McDowell, D-Wilmington, who co-chairs the joint committee and chairs the Senate Energy Committee, urged PJM to help Delaware appeal the cost formula to the Federal Energy Regulatory Commission (FERC), so the company could ultimately move forward with the project.
“Nobody would agree to pay 90 percent of the check when they only get to enjoy 10 percent of the meal,” said McDowell. “But that’s exactly what’s happening here: bigger states and huge corporations are trying to get a free lunch by bullyingDelaware ratepayers into footing a $272 million bill.
“This committee doesn’t take issue with the construction project itself; in fact, we’d like to see it move forward—but our support is contingent on a change in the frankly untenable cost allocation currently being forced on Delaware. Right now, this is a regional project with localized costs. I’m calling on PJM to support that position through a separate tariff filing with the FERC, so that we can reach a fair, sensible cost allocation and a constructive path forward.”
Rep. Trey Paradee, D-Dover West, one of the panel’s co-chairs, also asked for PJM’s help in securing a more balanced path forward.
“I’m looking for friends, I’m looking for advocates, and I’m looking for these companies to acknowledge that we have a valid point, that we’re not being treated fairly,” said Paradee, who also chairs the House Energy Committee. “I’m looking for these companies to step up and help make the case that this isn’t fair to Delaware.
“It’s too easy to say, ‘Well, that’s the calculation and so that’s what we have to go with.’ I just don’t buy that. This is essentially the Delaware ratepayers making a significant upgrade to this facility. For those of us who live in this little state we love, we’re sitting back and seeing these big utility companies and other larger states aligned against us, and we feel like our rights are being trampled. And we’re looking for a solution here, to find a more equitable way to spread this cost.”
In a complaint filed with the FERC in August 2015, the Delaware Public Service Commission argued that the project failed to meet federal standards requiring cost allocations to be “roughly commensurate” with benefits, citing a PJM study that estimated Delmarva ratepayers would cover 90 percent of the project’s cost while only realizing about 10 percent of its benefits.
Gov. John Carney also issued a statement opposing the current cost allocation.
“This project, as currently financed, would place an unjust burden on Delaware residential and industrial ratepayers,” said Carney. “Delaware businesses and families would see higher monthly electric bills, and receive next to nothing in return in the way of a direct benefit. I intend to work with members of Delaware’s federal delegation, the Public Service Commission, our Public Advocate, and the General Assembly to oppose the current cost allocation as set by the Federal Energy Regulatory Commission. This is not a good deal for Delaware.”
The project—which was temporarily suspended eight months ago after Delaware and Maryland officials widely decried itslopsided cost allocation formula and spiraling budget—would build a 230 kilovolt transmission line from Delaware to New Jersey’s Artificial Island, which proponents of the project say will help improve overall stability in the regional power grid.
Sen. Harris McDowell, D-Wilmington, who co-chairs the joint committee and chairs the Senate Energy Committee, urged PJM to help Delaware appeal the cost formula to the Federal Energy Regulatory Commission (FERC), so the company could ultimately move forward with the project.
“Nobody would agree to pay 90 percent of the check when they only get to enjoy 10 percent of the meal,” said McDowell. “But that’s exactly what’s happening here: bigger states and huge corporations are trying to get a free lunch by bullyingDelaware ratepayers into footing a $272 million bill.
“This committee doesn’t take issue with the construction project itself; in fact, we’d like to see it move forward—but our support is contingent on a change in the frankly untenable cost allocation currently being forced on Delaware. Right now, this is a regional project with localized costs. I’m calling on PJM to support that position through a separate tariff filing with the FERC, so that we can reach a fair, sensible cost allocation and a constructive path forward.”
Rep. Trey Paradee, D-Dover West, one of the panel’s co-chairs, also asked for PJM’s help in securing a more balanced path forward.
“I’m looking for friends, I’m looking for advocates, and I’m looking for these companies to acknowledge that we have a valid point, that we’re not being treated fairly,” said Paradee, who also chairs the House Energy Committee. “I’m looking for these companies to step up and help make the case that this isn’t fair to Delaware.
“It’s too easy to say, ‘Well, that’s the calculation and so that’s what we have to go with.’ I just don’t buy that. This is essentially the Delaware ratepayers making a significant upgrade to this facility. For those of us who live in this little state we love, we’re sitting back and seeing these big utility companies and other larger states aligned against us, and we feel like our rights are being trampled. And we’re looking for a solution here, to find a more equitable way to spread this cost.”
In a complaint filed with the FERC in August 2015, the Delaware Public Service Commission argued that the project failed to meet federal standards requiring cost allocations to be “roughly commensurate” with benefits, citing a PJM study that estimated Delmarva ratepayers would cover 90 percent of the project’s cost while only realizing about 10 percent of its benefits.
Gov. John Carney also issued a statement opposing the current cost allocation.
“This project, as currently financed, would place an unjust burden on Delaware residential and industrial ratepayers,” said Carney. “Delaware businesses and families would see higher monthly electric bills, and receive next to nothing in return in the way of a direct benefit. I intend to work with members of Delaware’s federal delegation, the Public Service Commission, our Public Advocate, and the General Assembly to oppose the current cost allocation as set by the Federal Energy Regulatory Commission. This is not a good deal for Delaware.”
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Press Contacts
Scott Goss
Communications Director
(302) 744-4180
[email protected]
Dylan McDowell
Communications Assistant
(302) 744-4282
[email protected]
Scott Goss
Communications Director
(302) 744-4180
[email protected]
Dylan McDowell
Communications Assistant
(302) 744-4282
[email protected]