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Governor Carney and Maryland Governor Larry Hogan Continue Fight Against Artificial Island Cost Allocation, Unfair Rate Hikes

Date Posted: Thursday, March 30th, 2017
Categories:  Governor John Carney Office of the Governor Public Service Commission

Maryland, Delaware Governors Call on PJM to Support Request for FERC Rehearing

WILMINGTON, Del. – Governor Carney on Thursday released a joint letter with Maryland Governor Larry Hogan to the Chair of PJM Interconnection’s Board of Managers, opposing the cost allocation of the $279 million Artificial Island transmission line project, which would continue to unfairly burden electric ratepayers in Delaware and across the Delmarva Peninsula.

Delmarva homeowners and businesses would see their electric bills rise to cover 90 percent of the cost of the project, while receiving little in the way of a direct benefit.

“This is a bad deal for electric ratepayers in Delaware and across Delmarva,” said Governor Carney. “I’m proud to stand with Governor Hogan to oppose the current cost allocation for this project, which would unfairly raise costs for businesses and families in Delaware and across our region. We will continue to work with the Public Service Commission, Delaware’s Public Advocate, members of the General Assembly and our congressional delegation to protect Delmarva ratepayers.”

“Since the beginning of this process, our administration has expressed our opposition, frustration, and disappointment about the burdensome costs associated with this project,” said Governor Hogan. “Delmarva Peninsula taxpayers should not have to disproportionately pay hundreds of millions of dollars in rate increases, especially given the majority of the benefits will go to other states.”

Delaware and Maryland have appealed the current cost allocation to the Federal Energy Regulatory Commission. Governor Carney and Governor Hogan urged PJM to support a rehearing in their letter. According to the most recent cost estimates, Delmarva ratepayers would still pay approximately $250 million of the $279 million in the project’s total costs, while receiving little direct benefit.

“As a result, the average residential and commercial customer will pay significantly higher rates,” Governor Carney and Governor Hogan wrote in their letter. “For many families this simply will be unaffordable and for many businesses it could mean closures and job losses. This economic burden to Delmarva is unacceptable.”

Delaware’s Public Service Commission and Public Advocate also have urged the PJM Board to support a rehearing on the cost allocation.

For additional details:

Governor Carney and Governor Hogan’s Letter
Delaware Public Service Commission Letter to PJM Board
Delaware Public Advocate Letter

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governor-delaware-seal Visit Governor Carney’s website for more information about the Governor's Action Plan for Delaware.

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