Energy Cost Increases
Issue Overview: Delaware is currently in the middle of raging debate surrounding the possible construction of wind turbines off the coast of Rehoboth Beach. Essentially, Blue Water Wind, the company seeking approval to build these wind turbines, along with their advocates, are asking the Delaware General Assembly to require Delmarva Power and Light to sign a 25-year contract to subsidize the cost of the wind turbines. The small business and residential customers of DP&L would pay additional rates over the life of the contract to cover these increased costs of this wind energy operation. Additionally, if Blue Water Wind is successful, either Delmarva Power, or NRG would build a gas fired turbine plant to supplement the electric needs of Sussex County when energy is not being produced.
NFIB has many business members that are Delmarva customers, and remain concerned that by making only DP&L small business rate payers supplement this wind energy project, their costs will rise faster than their competitors that have different suppliers.
Issue Status: NFIB is currently monitoring two separate House Concurrent Resolutions, #38 and #40, both seeking to expand those electric rate payers beyond just DP&L's rate base. HCR38 expands the rate base to all DP&L customers, whereas HCR40 seeks to have all Delaware electricity users, whether they are members of the COOP or municipal systems, pay for the wind energy project.
Hearings on these resolutions are expected in late March.
