Governors Carney and Hogan, Delaware’s Federal Delegation Issue Statements on FERC Artificial Island Ruling

Ruling will significantly reduce cost of project for Delaware businesses and residential ratepayers

WILMINGTON, Del.The Federal Energy Regulatory Commission has denied a rehearing request on the cost allocation for the $278 million Artificial Island transmission line project, and established a fair allocation that will significantly reduce future costs for businesses and residential electric ratepayers on Delmarva.

As previously calculated, businesses and families in Delaware and Maryland would have funded more than 90 percent of the costs of the project, while receiving a fraction of the benefits. The adjusted allocation will reduce Delmarva’s share of the cost to just over 10 percent – resulting in more than $200 million in savings to families and businesses on the peninsula.

Governor Carney and Maryland Governor Larry Hogan issued the following statements on FERC’s ruling:

“All Delaware families and businesses who pay electric bills every month had a stake in this issue. This decision means Delawareans won’t unfairly bear the cost of this project in their electric bills, and everyone will pay their fair share,” said Governor Carney. “We understand there may be appeals, but this is a real win for Delawareans and our neighbors across the Delmarva Peninsula. We worked closely with Governor Hogan, members of our federal delegation, the Delaware Public Service Commission, and Delaware’s Public Advocate to achieve a fair outcome for Delawareans. I want to thank the members of the Federal Energy Regulatory Commission for their consideration of this important issue, and for their fair decision on behalf of the people of Delaware.”

“Since the beginning of this process, our administration has worked tirelessly to ensure that Delmarva Peninsula ratepayers and taxpayers did not have to disproportionately pay hundreds of millions of dollars associated with this project,” said Governor Hogan.”The decision from the Federal Energy Regulatory Commission, to significantly reduce future costs to just over 10 percent, is a win for both Maryland and Delaware citizens. We will continue to work with all parties to ensure an equitable solution is reached for our citizens, and we thank Governor Carney for his partnership as well as the commission for their important work on this issue.”

Previously, Governor Hogan and Governor Carney sent a joint letter opposing the cost allocation and urged the commission to expedite their review of the project.

Delaware’s federal delegation – Senators Tom Carper and Chris Coons, and Congresswoman Lisa Blunt Rochester – also issued the following statement on FERC’s ruling:

“The Federal Energy Regulatory Commission’s decision is one that we’ve been working toward for a long time now. Our Delaware and Maryland ratepayers were being asked to pay an unfair share of this project, and we went to work to prove this. FERC’s corrected course is just the outcome we hoped to deliver to ratepayers on Delmarva, and was a great team effort on behalf of all of our constituents.”

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Related news:
Governors Carney and Hogan on FERC Action to Grant Rehearing for Cost Allocation on Artificial Island Transmission Line
Governor Carney, Governor Hogan Urge FERC to Expedite Review of Artificial Island Cost Allocation
Governor Carney Signs Resolution Urging FERC to Accept Fair Cost Allocation for Artificial Island Project
Governor Carney and Governor Hogan React to PJM’s Alternative Financing Methods for Artificial Island Project
Governor John Carney and Governor Larry Hogan Respond to PJM Reevaluation of Artificial Island Cost Allocation
Governor Carney and Maryland Governor Larry Hogan Continue Fight Against Artificial Island Cost Allocation, Unfair Rate Hikes
Governor Carney’s Statement on Artificial Island Project Recommendations


DNREC’s Nonpoint Source Program offering free trees to Delaware residents in partnership with DDA’s Forest Service

Delaware residents can go to www.arborday.org/delaware to order a free tree.

DOVER – DNREC’s Division of Watershed Stewardship Nonpoint Source Program is offering a free tree to Delaware residents in partnership with the Delaware Forest Service’s Urban and Community Forestry program within the Department of Agriculture. The free tree program is part of the Arbor Day Foundation’s Community Canopy Project to expand tree canopies in cities and towns across the country. Trees can be reserved at www.arborday.org/delaware.

Trees planted in strategic locations around a house can provide homeowners with numerous benefits, including: cleaner air and water, improved property values, less storm water runoff and flooding, and lower energy bills through reduced heating and cooling costs.

An online tool on the Arbor Day Foundation site helps Delawareans estimate the annual energy savings that can result from planting trees in the most strategic location near their homes or businesses. Residents can reserve one tree per household, and are expected to care for and plant their trees in the location suggested by the online tool. Quantities of trees are limited and the types of trees offered include the following: American sycamore, black tupelo, shadblow, serviceberry, swamp white oak, and tulip tree.

The program will continue until all 1,200 trees are reserved. Smaller trees will be delivered directly to homeowners at their mailing address. The larger two-to-four foot tall trees will be available for pickup from 3-7 p.m. Friday, Oct. 26 or 10 a.m.-2 p.m. Saturday, Oct. 27 at the Delaware Department of Agriculture at 2320 South DuPont Highway, Dover, DE 19901.

“Not only does this project help beautify our city’s landscape, it also provides immense environmental benefits that can help Dover residents save money on their energy bills,” said Marcia Fox, DNREC Nonpoint Source Program manager and chair of the state’s Urban and Community Forestry Council.

The “Community Canopy Project” online tool was created by the Arbor Day Foundation and the Davey Institute, a division of Davey Tree Expert Co., and uses peer-reviewed scientific research from the USDA Forest Service’s i-Tree software to calculate estimated benefits. In addition to providing approximate energy savings, the tool also estimates the trees’ other benefits, including cleaner air, reduced carbon dioxide emissions, and improved storm water management.

For more information about reserving a tree, please call 855-234-3801.

Media contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 48, No. 282

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Governors Carney and Hogan on FERC Grants Rehearing for Cost Allocation on Artificial Island Transmission Line

WILMINGTON, Del.Governors John Carney of Delaware and Larry Hogan of Maryland released the following statement today in response to action by the Federal Energy Regulatory Commission (FERC) to grant a rehearing to consider a lower cost allocation for Delaware and Maryland ratepayers related to the $278-million Artificial Island transmission line project:

“Almost two years to the day since grid operator PJM approved the building of the Artificial Island transmission line, FERC has agreed with our request to grant a rehearing to consider more fairly allocating the costs of the project. Under the current cost allocation, residents and businesses in Delaware and Maryland would fund the vast majority of the project through higher electric bills, while receiving few direct benefits. As we have said all along, that is a bad deal for the residents of our states. We are pleased FERC has granted a rehearing.

“Last summer, PJM published a report detailing two alternative methodologies for identifying the beneficiaries of the Artificial Island project. These methods produced a result that better represented the regional benefits to be obtained, and we are thankful to FERC for recognizing the validity of these alternatives and granted this paper rehearing.

“Over the past several years, we repeatedly expressed our concerns over the previous cost allocation methodology, which put more than 90 percent of the cost of the transmission line on Delmarva Zone ratepayers. As we have stated many times, most recently in our November 27, 2017 letter to FERC, we are not opposed to the Artificial Island project itself, but object to unfair and unreasonable costs for our residents and businesses.”

The order from FERC approving the request for rehearing stated, “[they] find that it is unjust and unreasonable to apply PJM’s solution-based DFAX (previous methodology) cost allocation method to Regional Facilities, Necessary Lower Voltage Facilities, and Lower Voltage Facilities that address stability-related reliability issues, including the Artificial Island Project. To determine the just and reasonable rate to be applied, we are establishing a paper hearing procedure.” This procedure is due within 60 days.

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DNREC to extend popular Clean Transportation Incentive Program through the end of 2019

Delaware drivers and businesses choose environmentally-friendly, money-saving vehicles

DOVER – DNREC’s Division of Climate, Coastal & Energy today announced that the state’s popular Clean Transportation Incentive Program will be extended through Dec. 31, 2019 in response to Delawareans’ rising demand for cleaner fuel and electric vehicles. Rebate amounts will remain the same, but eligibility requirements will be updated slightly for clarity and flexibility. Changes will take effect July 1. The logo for the Department of Natural Resources and Environmental Control

“The Clean Transportation Incentive Program has been well-received across Delaware,” said DNREC Secretary Shawn M. Garvin. “When DNREC started this program, we hoped to assist at least 100 drivers in making the cleaner, more cost-effective vehicle choice. Three years later, we have exceeded that target seven times over. Electric and cleaner fuel vehicles are a smart choice for citizens and businesses alike.”

Launched in July 2015, the Clean Transportation Incentive Program has provided rebates to more than 750 Delaware drivers across all three counties for the purchase or lease of electric and plug-in hybrid electric vehicles. The program has also provided more than 200 rebates for electric vehicle charging stations at residential and commercial properties and workplaces. The program was designed to help Delaware drivers choose vehicles that produce less or no tailpipe emissions, reducing both unhealthy pollution and the greenhouse gas emissions that drive climate change.

Rebates for the purchase or lease of cleaner fuel vehicles are:

  • $3,500 for battery electric vehicles under $60,000 MSRP
  • $1,500 for plug-in hybrid electric vehicles and electric vehicles with gasoline range extenders under $60,000 MSRP
  • $1,000 for battery and plug-in hybrid electric vehicles over $60,000 MSRP
  • $1,500 for dedicated propane or natural gas vehicles
  • $1,350 for bi-fuel propane or natural gas vehicles
  • $20,000 for heavy-duty dedicated natural gas trucks

Rebates are also available for electric vehicle charging stations for homes, businesses, and workplaces.

Delaware’s Clean Transportation Incentive Program is made possible through Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI). For more information, visit de.gov/cleantransportation.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902.

Vol. 48, No. 163

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Delaware Offshore Wind Working Group to hold public workshops May 29 and 31

DOVER – Delaware’s Offshore Wind Working Group will host two public workshops in May for input on the working group’s draft recommendations to the Governor.

Workshops will be held at 6 p.m. on the following dates and locations:

  • Tuesday, May 29, William Penn High School Auditorium, 713 E. Basin Road New Castle, DE 19720
  • Thursday, May 31, South Coastal Library, 43 Kent Avenue, Bethany Beach, DE 19930

The workshops will begin with a brief update on draft recommendations that were developed at the working group’s April 23 meeting. The public may then offer comments on the draft recommendations.

The recommendations focus on three key questions:

  • What factors need to be considered before Delaware responds when a company proposes to develop offshore wind?
  • What factors need to be considered in a decision on whether the state would solicit or purchase energy, capacity or renewable energy credits (RECs) from an offshore wind project?
  • What can Delaware do to position itself to become the location for part of the supply chain for offshore wind projects in the Mid-Atlantic?

The draft recommendations, along with briefing materials, public comments, and additional resources are posted at de.gov/offshorewind.

All Offshore Wind Working Group meetings are open to the public and posted on the Delaware Public Meeting Calendar.

For more information, or to submit written comment, please contact Tom Noyes, principal planner for utility policy, DNREC Division of Energy & Climate, by emailing Thomas.Noyes@delaware.gov or calling 302-735-3480.

Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902.

Vol. 48, No. 129