This summary explains the assumptions behind the Independent Consultant's estimate of "rate impact" under the Delmarva (DPL)/Bluewater Wind power purchase agreement (PPA).
The Board of Public Utilities (BPU) proposes a pilot competitive production incentive and financing program to encourage the development of an offshore wind renewable electricity generation pilot project with an aggregate capacity not to exceed 350 MW. A maximum of 10% of the total grant production credit may be requested under the grant solicitation to be paid in the form of an upfront payment for design, engineering, and permitting costs. Expected timeframe for production credit is no longer than five years.
The report analyzes the impact on consumer rates of Maine's current renewable energy portfolio standard (RPS) policy as well as potential RPS requirements set at a higher level and assuming different renewable energy certificate (REC) prices. It also examines the potential from new investment in renewables to stimulate job creation and support key segments of the local economy.
This Request for Proposals (RFP) solicits proposals for a private partner to move forward with the Rhode Island Energy Independence I project. The project would supply not less than 1.3 million megawatt-hours per year (or 15% of the energy consumed by Rhode Island's electricity customers).
NJ Board of Public Utilities' (BPU) draft structure of an offshore wind set-aside, or “carve-out”, within New Jersey’s Renewable Portfolio Standard (RPS), which calls for 1000 MW by 2012 and 3000 MW by 2020.
The Maine Public Utilities Commission (PUC) solicits proposals for one or more long-term contracts to supply an aggregate total of no more than 30 megawatts of installed capacity and associated renewable energy and renewable energy credits (RECs) from deep-water offshore wind energy pilot projects or tidal energy demonstration projects.
Staff recommends that the state agencies approve the Bluewater-Delmarva (DPL) power purchase agreement (PPA), with the condition that the Public Service Commission (PSC) enter an order approving a non-bypassable charge that spreads the cost to Delmarva’s entire customer base.
In this 25-year Power Purchase Agreement (PPA), Delmarva Power & Light (DPL) Company agrees to purchase up to 300 MW at a cost to ratepayers of 10.56 cents/kWh. Bluewater Wind agrees to build a 150 turbine, 450MW offshore wind project.
In this 25-year contract, Delmarva Power (DPL) agreed to purchase 200MW, at 9.893 cents/kWh, of offshore wind power from Bluewater Wind. Bluewater is authorized to market an additional 400MW of power to other potential buyers in New Jersey and Maryland.
The NJ Division of Rate Counsel's consultant testifies that the proposed Fishermen's Energy (FERN) Atlantic City Windfarm project, and its Offshore Renewable Energy Credits (ORECs) prices, do not produce a net economic benefit to New Jersey ratepayers, and, if approved and developed, could lead to a loss of nearly 30,000 jobs and a loss of $1 billion in net economic output on net present value terms. On an annual basis, the project would increase rates by between $15 million to $37 million per year. Over a twenty-year time frame, the project would lead to a rate increase of $286.3 million. According to the consultant, the project should also be rejected since it fails to meet the statutory nameplate capacity limitation outlined in the Offshore Wind Economic Development Act (OWEDA).