21 Representatives and 7 Senators

This resolution has been circulating in Leg Hall since last week:

Rep. Valihura & Rep. Kowalko & Sen. Sorenson & Sen. Sokola;
Reps. Schwartzkopf, Johnson, Carey, Carson, Ewing, Hastings, Maier, Manolakos, Mitchell, Mulrooney, Oberle, B. Short, Booth, Walls, Plant, Blakey, Spence, Lofink, Williams; Sens. Bunting, Ennis, Bonini, Cloutier, Simpson

HOUSE OF REPRESENTATIVES
144th GENERAL ASSEMBLY

HOUSE CONCURRENT RESOLUTION NO.

RECOMMENDING THE CONTROLLER GENERAL VOTE TO APPROVE THE POWER PURCHASE AGREEMENT BETWEEN BLUEWATER WIND AND DELMARVA POWER AND REQUESTING THE PUBLIC SERVICE COMMISSION DETERMINE IF THE COSTS SHOULD BE DISTRIBUTED AMONG ALL DELMARVA POWER CUSTOMERS.

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.

SYNOPSIS
This Concurrent Resolution recommends 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 Power Purchase Agreement meets the criteria set forth in House Bill 6 of the 143rd General Assembly and is in the best interests of the citizens of this State. This Concurrent Resolution further requests that the Public Service Commission determine if the costs for the Bluewater Wind contract should be distributed among all Delmarva Power customers.

The News Journal has the story:

Twenty-eight lawmakers have co-sponsored a resolution that recommends passage of an offshore wind power contract. It was filed Thursday by Rep. Robert Valihura, R-Talleyville; half of the Republican-controlled House, including Speaker Terry Spence, had signed on as co-sponsors. The resolution says Controller General Russ Larson should approve a 25-year contract for Delmarva Power to buy offshore wind power from Bluewater Wind. At a meeting with three other state agencies last month, Larson declined to sign the contract because of division among Legislative leadership.