Sussex County residents could end up with an offshore wind farm and a new natural gas plant.
Public Service Commission staff recommended Wednesday that officials direct Delmarva Power to negotiate with Bluewater Wind and Conectiv to provide Delawareans with long-term, complementary sources of long-term energy supply.
The 67-page staff report released Wednesday afternoon calls for a 200- to 300-megawatt offshore wind farm — smaller than the originally proposed 600-megawatt farm — and a 150- to 200-megawatt natural gas plant.
The recommendation also calls for the Conectiv plant to be built in a yet-to-be-determined location in Sussex County, instead of upstate.
Combining the bids would give Delawareans diversity in supply — allowing gas to back up wind — while minimizing environmental impact, according to the report.
“Although neither Bluewater’s nor Conectiv’s current proposal is a complete solution to Delaware’s energy concerns, they each provide value to the long-term energy supply portfolio in Delaware,” a portion of the recommendation reads.
“Although staff’s recommendation is not the least expensive solution, it is a complementary energy arrangement that will help to mitigate global warming and reduce dependence on fossil fuels. Taken together, these projects, when appropriately managed, should have a positive impact on price stability.”
Public Service Commission officials could not be reached for further comment Wednesday afternoon. The commission itself must approve any recommendation before officials direct Delmarva Power down a certain path.
It is unclear whether Bluewater Wind or Conectiv would accept a suggestion to build smaller than originally proposed. Bluewater Wind officials were skeptical about the practicality of that notion and that outcome of the proposal process when asked about it by the Coastal Point late last year.
If either chose not to participate, the staff would recommend a request for proposals geared specifically toward proposals using alternative sources of energy recommended by the state’s independent consultant last month.
Bluewater Wind officials also announced today that they had reached an agreement with Delaware Municipal Electric Corporation Inc. to provide energy to 100,000 customers in Newark, New Castle, Middletown, Dover, Smyrna, Seaford, Lewes Clayton and Milford.
According to a Bluewater press release, that deal was reliant on a state recommendation to build the originally-proposed wind farm. It is not clear how this most recent suggestion will affect that deal.
Wednesday’s staff suggestion stems from months of deliberation to consider a source for long-term energy supply brought on by Delaware legislation approved last spring in attempts to provide Delawareans with innovative energy sources that could provide price stability.
NRG Energy, the owner of the Indian River Power Plant, proposed a “clean-coal” plant at the site of the Millsboro plant. Two of the units at the current plant would be shut down under the NRG proposal.
Check next week’s Coastal Point for continuing coverage of this issue.