Governor and Municipalities Sign Agreement to Reduce Municipal Electric Rates to Attract New Jobs

Governor and Municipalities Sign Agreement to Reduce Municipal Electric Rates to Attract New JobsDOVER – Municipal electric rates in Delaware should start to go down by at least 10 percent under an agreement signed today. Gov. Jack Markell joined Patrick McCullar, President and CEO of the Delaware Municipal Electric Corporation (“DEMEC”), and the Mayors or town officials of Newark, New Castle, Middletown, Clayton, Smyrna, Dover, Milford, Lewes and Seaford to sign a Memorandum of Understanding (“MOU”) that underscores their shared commitment toward making municipal energy rates more competitive in order to spur job creation, while preserving the core functions and services provided to residents and businesses in the municipal service territories.

“Over the last three months, DEMEC and the towns rolled up their sleeves and worked diligently with us to find a way to lower electric utility rates without shifting the cost to the other essential and valuable services the towns provide, “ said Governor Markell.  “This memorandum of understanding strikes that balance. It sends a clear signal to businesses that Delaware and our towns and municipalities are ready to compete for jobs.”

Under the Memorandum of Understanding, the nine DEMEC municipalities have agreed to lower retail electric rates by at least 10% in the next three years, starting this year.  In addition, to the extent they have not done so already, each municipality will authorize an “economic development rate” for the purpose of incentivizing job creation in the DEMEC municipalities and attracting new employers to locate in Delaware municipalities.  Finally, each municipality has agreed to photo: Governor and Municipalities Sign Agreement to Reduce Municipal Electric Rates to Attract New Jobscap for the next five years at FY ’12 amounts the revenue that they transfer from their electrical utility to their general fund budget.  In return, as long as the DEMEC municipalities abide by the MOU, the Governor has agreed to oppose any legislation that would allow third-party supply in the municipal electric territories.

”DEMEC and its member communities share Governor Markell’s goal of making Delaware one of the most attractive and competitive locals in the world,” said Patrick McCullar, CEO of DEMEC.  “We recognize how important lower energy costs are to Delaware and appreciate the opportunity to work closely with the Governor toward our common goals.”

The Memorandum of Understanding was signed by the Governor and Mr. McCullar, who is authorized to sign on behalf of the DEMEC municipalities via a resolution enacted in each DEMEC municipality.  A copy of the final MOU is below.

 

MEMORANDUM OF UNDERSTANDING BETWEEN

THE HONORABLE JACK MARKELL, GOVERNOR OF DELAWARE

AND

THE DELAWARE MUNICIPAL ELECTRIC CORPORATION ON

BEHALF OF ITS NINE MUNICIPAL MEMBERS

This Memorandum of Understanding between the Honorable Jack Markell, Governor of the State of Delaware (“Governor”), and the Delaware Municipal Electric Corporation, a body corporate and politic formed pursuant to Title 26, Delaware Code, for itself and on behalf of the nine duly chartered municipalities comprising its membership, being New Castle, Newark, Middletown, Smyrna, Clayton, Dover, Milford, Lewes and Seaford (collectively, “DEMEC”, or the “DEMEC Municipalities”).

WHEREAS, the Governor and the DEMEC Municipalities are fully committed to and engaged in the task of attracting new businesses to Delaware and expanding existing Delaware businesses in order to provide job opportunities  for all Delawareans; and

WHEREAS, DEMEC and the DEMEC Municipalities are potential beneficiaries of the Governor’s job creation initiatives and accordingly, are fully  committed to aiding and supporting such initiatives consistent with the responsibilities vested in them by their charters; and

WHEREAS, the Governor has identified the commercial and industrial electric rates charged by certain of the DEMEC Municipalities-owned electric utilities as a potential disincentive for the recruitment of new businesses to, and the expansion of existing businesses in Delaware; and

WHEREAS, historically, the DEMEC Municipalities have used varying percentages of their return on investment in their municipal electric utilities to supplement general fund revenues in order to assure adequate funding for various essential and valuable municipal services provided to all of their residential, commercial and industrial customers, including sewer, water, public safety and street maintenance; and

WHEREAS, the Governor recognizes and appreciates both the critical importance to each of the DEMEC Municipalities of the supplemental revenues provided by their electric utilities to the provision of cost-effective funding for the full complement of municipal services, as well as the sovereign right of each of the municipalities pursuant to their home rule charters to control their respective budgetary processes and their exclusive right to provide electric power to their residential, commercial and industrial citizens; and

WHEREAS, the Governor and DEMEC find and determine that it is in the best interests of their respective constituencies to advance the shared goal of creating economic opportunity for all Delawareans without unduly encroaching upon the home rule authority of the DEMEC Municipalities.

NOW, THEREFORE, DO THE GOVERNOR AND DEMEC AGREE AS FOLLOWS:

  1. Each of the DEMEC Municipalities will, prior to the conclusion of the three (3) year period commencing January 1, 2012  , reduce their retail electric rates by not less than an average of ten percent (10%);
  2. Each of the DEMEC Municipalities shall, by appropriate action of its governing body, if not previously accomplished, authorize an economic development rate, or a process for permitting the negotiation of an economic development rate, to be fixed and determined in the sole discretion of each such municipality.  The primary purpose of such economic development rate shall be to incentivize job creation in the DEMEC municipalities by providing for a discounted electric rate;
  3. Each of the DEMEC Municipalities shall to the extent possible within the constraint of the needs of the municipalities to maintain efficient and reliable utilities and services, including coverage of capital costs and related debt service costs of providing those services, by appropriate action of its  governing body, agree to maintain for a five year period commencing with their 2012 fiscal year a limit on the transfer of revenues from its electric utility into its general fund which limit shall for each municipality be equal to the actual dollar amount of such transfer in Fiscal year 2012; provided, however, that, prior to the start of its 2015 fiscal year, and for each of the two fiscal years that follow, each municipality shall, upon a determination by its governing body of a compelling and unanticipated municipal financial need, notice of which shall be provided to the Governor, have the right to transfer revenues from its electric utility in excess of the amount of revenue transferred by such municipality during the 2012 fiscal year into its general fund as it deems necessary to meet such need.
  4. For as long as the DEMEC Municipalities are in compliance with paragraphs 1 through 3 of this MOU , the Governor will actively oppose any effort to interfere with the exclusive right of the DEMEC Municipalities to provide electric power to all residential, commercial and industrial customers within their respective service territories.  Specifically but without limitation, the Governor shall actively oppose any legislative initiative which would grant to any such customer the right to freely choose an alternate source of electric power.

IN WITNESS WHEREOF, AND INTENDING TO BE MORALLY BOUND HEREBY, the Governor and DEMEC have respectively executed and caused this Memorandum of Understanding to be executed this 9th day of May, 2012.

Jack Markell, Governor of Delaware

Delaware Municipal Electric Corporation

On behalf of its members

Patrick E. McCullar

President & CEO


Air Quality Improvements Unveiled At Trinity Port Services In New Castle

Electrified outlets will improve quality of life for neighbors

NEW CASTLE  – A cooperative project that improves Delaware air quality and the quality of life for neighborhood residents was unveiled today at a ceremony at Trinity Port Services in New Castle. Twenty electrified outlets that power refrigerated storage containers at the company’s Rogers Road site have replaced the use of diesel generators, significantly reducing air pollutants, diesel fumes and noise in the community.

Governor Jack Markell and Trinity Port Services Company President Darrel Banning were joined by DNREC Secretary Collin O’Mara, Regional EPA Administrator Shawn M. Garvin, Clean Air Council Coordinator Abby Poses, DuPont Edge Moor Plant Manager Elizabeth Schowe, Rose Hill Community Center Director Shelia Berkel, Senator David McBride (D-Hawks Nest), Senator Margaret Rose Henry (D-Wilmington East), Representative James J. Johnson (D-Jefferson Farms), and New Castle County Councilman Jae P. Street (10th District) to announce the cleaner alternative to diesel generators.

“This project is an excellent example of government, private business, environmental advocacy organizations and the community working together to find a safe, effective way of improving air quality and reducing health risks,” said Governor Markell. “We are always looking for ways to make our air cleaner and together, we are making progress.”

The project addresses the problems of air pollution, odors and noise that have affected residents who live near the facility. Neighbors and community leaders from local civic associations were instrumental in bringing the problems to the attention of environmental advocacy organizations and the state government. After Trinity Port Services acquired the business in 2007, company management immediately recognized the needs of the neighborhood, moved equipment and installed barriers to reduce noise and diesel fumes in the area. Additionally, the company has implemented environmentally-friendly improvements at the site.

image: Air quality improvements unveiled at Trinity Port Services in New CastleIn 2011, DNREC proposed the project at Trinity Port Services after DuPont applied for a Coastal Zone Act permit to install two large boilers at its Edge Moor facility in Wilmington. Delaware’s Coastal Zone Act regulates heavy industrial activities, as well as new and existing manufacturing activities in the state’s Coastal Zone. Coastal Zone regulations require companies to offset air emissions and other negative environmental impacts.

Under an agreement between DuPont and DNREC, DuPont, as a condition of its Coastal Zone permit, funded this project to offset air emissions from the boilers at the Edge Moor facility. In addition, DuPont provided funding for technical and administrative oversight of the project to the Clean Air Council through its diesel pollution reduction program.

According to DNREC Secretary Collin O’Mara, the project eliminates up to 120 tons of harmful air pollutants annually from the Trinity site. “This Coastal Zone environmental offset project is an innovative solution to the longstanding air quality, odor and noise problems in the neighborhood,” he said. “The project ensures clean air by supporting the state’s ongoing efforts to reduce diesel emissions.”

“This clean air project at Trinity Port Services underscores the value of partnering between government and the private sector, and proves that common-sense changes can deliver exceptional results,” said EPA mid-Atlantic Regional Administrator Shawn M. Garvin. “By working with DNREC and partnering with DuPont on this project, Trinity Port Services is helping protect the health and livability of nearby community residents.”

“The new outlets installed at Trinity will eliminate the use of up to 600 gallons of diesel per week,” said Abby Poses, Clean Transportation Coordinator with the Clean Air Council.  “The installation of these outlets will go a long way towards improving air quality and minimizing the effects of diesel on public health. The Clean Air Council has been honored to be a part of such an important project with DNREC, DuPont and Trinity Port Services.”

“Providing the funds for this project helped DuPont, the community and the environment in another way,” said DuPont Edge Moor Plant Manager Elizabeth Schowe. “In addition to improving the quality of life for our neighbors, we were enabled to install two clean-burning, energy efficient, gas-fired generators at our plant. That reduced our dependence on a less efficient and less clean coal-burning power producer.”

image: Air quality improvements unveiled at Trinity Port Services in New Castle“Those of us who live next to this facility truly appreciate everyone’s efforts on this important project,” said Sheila Berkel, Director of the Rose Hill Community Center. “So often our community seems to get overlooked on issues that negatively impact one’s quality of life.  We’re excited about what’s being done here today, and we certainly hope our leaders and elected officials will continue to focus their attention on the needs of the people who live near industrial plants like this one.”

“This project demonstrates Trinity’s commitment to our community as well as our environment,” said Trinity Port Services Company President Darrel Banning. “We appreciate the teamwork and collaboration with all of the involved parties for the common goal of cleaner air. We are very thankful for the funding, as this is only the first step in the future development of greener initiatives for Trinity Port Services.”


Governor’s Weekly Message: Making Delaware’s Case to Major Employers


DOVER – In his weekly address, the Governor talks about two new chances to make Delaware’s case in the national debateon how to get people working, make our schools even stronger and better prepare our nation for what is emerging as a global war for talent and jobs.

The Governor was asked to kick-off a national STEM Connector Town Hall Wednesday and earlier that day,  he and former G-E CEO Jack Welch were asked to be the closing speakers for the The Wall Street Journal’s annual conference, called Task Force for Women in the Economy.

On a number of the topics from supporting entrepreneurs, to improving STEM education, Delaware has a number of efforts underway,” said Governor Markell.  “The chance to make our state’s case to people who keep millions working was an opportunity we could not turn down. As they build out their ideas own for new and best practices, we’ll be looking for new ways to partner, new answers to create more economic opportunity, and new approaches we can adopt right here as we keep working together to keep Delaware, moving forward.”

At noon every Friday, the Governor’s office releases a new Weekly Message in video, audio, and transcript form.  The message is available on:

Delaware.Gov: http://governor.delaware.gov/information/podcast_video.shtml
By email: Please contact our press team to subscribe to our press list
Facebook: www.facebook.com/governormarkell
Twitter: www.twitter.com/governormarkell

Transcript of the Governor’s Weekly Message: Making Delaware’s Case to Major Employers


Governor’s Weekly Message Transcript: Making Delaware’s Case to Major Employers

 

This week, Delaware had two new chances to make its case in the national debate on how to get people working, make our schools even stronger and better prepare our nation for what is emerging as a global war for talent and jobs.

In part because of some of my experience in the private sector helping to build companies, but in larger part because of the progress Delaware is making on jobs, schools and competitiveness, I was asked to kick-off a national STEM Connector Town Hall last Wednesday. Sponsored by companies creating cutting-edge technology, the Town Hall brought together senior executives from some large employers to help figure out how we can best prepare our kids for the Science, Technology, Engineering and Math-heavy jobs that will give Delaware’s kids the strongest shot at economic independence.

And having that workforce ready to go – having adults or future leaders ready to jump in and succeed in new careers – is a critical part of attracting new jobs in the future.

Earlier on Wednesday, former G-E CEO Jack Welch and I were asked to be the closing speakers for the The Wall Street Journal’s annual conference , called Task Force for Women in the Economy. From academic leaders to the CEO’s of companies that collectively employ millions – including thousands of Delawareans – over 200 people came together to, as the Journal put it – create a “business-based, data-driven action plan to address an important economic issue: making better use of female talent to promote economic growth and competitiveness in the U.S. and worldwide.”

On a number of the topics – from supporting entrepreneurs, to improving STEM education – Delaware has a number of efforts underway.  And the chance to make our state’s case to people who keep millions working was an opportunity we could not turn down.

As they build out their ideas own for new and best practices, we’ll be looking for new ways to partner, new answers to create more economic opportunity, and new approaches we can adopt right here as we keep working together to keep Delaware, moving forward.


Gov. Markell Heads The Class At Prestige Academy In Wilmington During Teach For America Week

Event to Raise Awareness of Educational Inequity Brings Leaders into Local Schools as Guest Teachers

WILMINGTON — Governor. Jack Markell today highlighted the importance of hard work and determination to 7th grade math students at Prestige Academy in Wilmington as a guest teacher for Teach For America Week.  Teach For America Week draws community leaders nationwide to support educational excellence for all children. Volunteers visit the classrooms of Teach For America teachers, also known as corps members, and teach lessons based on their experiences in business, politics, and beyond.

During his visit, Gov. Markell co-taught a pre-Algebra class alongside Teach For America corps member Shenita Baltimore.  Gov. Markell and Ms. Baltimore facilitated a “skill drill” of students’ algebra vocabulary and content knowledge, followed by a Price is Right-themed group activity.  The Governor also took questions from students about his role as chief executive of the state of Delaware.

“These students know the more they prepare for their future, the more opportunities they will have.  They are lucky to have Ms. Baltimore, and Delaware is fortunate to have Teach for America,” said Governor Markell.  “Global jobs in science, technology, engineering and math will await these young people someday and we want them to be ready.  Great teachers will help make it happen.”

A graduate of Princeton University, Ms. Baltimore is in her second year teaching middle school math at Prestige Academy.  On this year’s Delaware Comprehensive Assessment System, 92 percent of her students scored proficient or advanced.

“Our partnership with Teach for America has been vitally important to Prestige Academy’s success,” said Jack Perry, founder and executive director of Prestige Academy.  “We are delighted that Governor Markell is helping to highlight the importance of this program in narrowing the achievement gap.”

Working in partnership with communities, Teach For America recruits, trains, and supports talented and diverse individuals from all backgrounds who commit at least two years to teach in high-need schools and become lifelong leaders in the movement to expand educational opportunity for children facing the challenges of poverty. This year, more than 9,000 first- and second-year Teach For America corps members are teaching in low-income communities across 43 urban and rural regions nationwide. Additionally, two-thirds of the organization’s nearly 24,000 alumni continue to work full-time in education.

Teach For America expanded to Delaware in 2009.  This school year, 45 first- and second-year corps members are reaching nearly 2,500 students growing up in low-income communities as teachers in Red Clay, Christina and New Castle County Vocational Technical school districts, the Latin American Community Center and local charter schools.  Additionally, some 30 local alumni also continue working to level the playing field for students and families in low-income Delaware communities.

Through its successful bid for Race to the Top funds in 2010, the state of Delaware has partnered with Teach For America to help extend its efforts to provide high-quality pathways to the classroom for aspiring teachers and principals.  Additionally, the Delaware General Assembly recently extended 2009 legislation that certifies Teach For America as a teacher preparation pathway for alternatively licensed educators for schools in under-resourced communities.

“We’re delighted about Gov. Markell’s participation in Teach For America Week and humbled by his support of our corps members’ work in their classrooms and in our community,” said Joe Moorman, executive director of Teach For America in Delaware. “Thanks to the partnership between Teach For America and the state of Delaware through Race to the Top, as well as through the Governor’s leadership to extend legislation enabling a certification path for our corps members, we’re excited by the opportunity to work alongside other efforts in our community to help provide all children with the educational opportunities they deserve.”

A growing body of independent research shows that corps members are having a positive impact on student achievement—including recent studies from Tennessee, North Carolina and Louisiana. The most recent research, from Tennessee, found that Teach For America corps members had greater impacts on student achievement than the average new fourth-to-eighth-grade teacher in the state across all subject areas and grade levels, and that Teach For America was the top new-teacher preparation program in the state.

About Teach For America

Teach For America works in partnership with communities to expand educational opportunity for children facing the challenges of poverty. Founded in 1990, Teach For America recruits and develops a diverse corps of outstanding individuals of all academic disciplines to commit two years to teach in high-need schools and become lifelong leaders in the movement to end educational inequity. Today more than 9,000 corps members are teaching in 43 urban and rural regions across the country, while nearly 24,000 alumni are working across sectors to ensure that all children have access to an excellent education. For more information, visit www.teachforamerica.org and follow us on Facebook and Twitter.