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 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

Governor Carney to FERC: Utility Customers Should Receive Benefit of Tax Savings

Governor petitions FERC to require that utilities pass along savings of tax cuts to Delaware residents, businesses

WILMINGTON, Del. – Governor John Carney sent a letter to the Federal Energy Regulatory Commission, urging FERC Commissioners to require utilities to pass along savings of recent federal income tax reductions to their customers – the residents and businesses paying electric bills. The following are excerpts from the letter:

“Since the last major tax bill in 1986, public utilities’ rates have included a federal income tax allowance of 35 percent, and they have accrued deferred income tax at that 35 percent rate, among other tax incentives. Unless rates are reduced to reflect the new lower income tax rates, transmission and natural gas utilities and their shareholders will reap the entirety of this benefit, resulting in unjust and unreasonable rates for their customers, our Delaware residents.”

“As you know, transmission and natural gas pipeline projects are expensive for Delawareans. To the extent that savings are available, they should be provided directly to consumers to reduce the costs of these projects. I ask that you open a proceeding to investigate whether the corporate tax rate reduction has resulted in unjust and unreasonable rates for the wholesale natural gas and electric transmission providers that serve the State of Delaware.”

Read the full letter here.

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Governor Carney, Governor Hogan Urge FERC to Expedite Review of Artificial Island Cost Allocation

As currently funded, $278 million project would unfairly burden electric ratepayers on Delmarva

WILMINGTON, Del. – Delaware Governor John Carney and Maryland Governor Larry Hogan on Tuesday sent a letter to members of the Federal Energy Regulatory Commission, urging commissioners to expedite their review of the $278 million Artificial Island transmission line project and consider a financing model that does not unfairly burden electric ratepayers on the Delmarva Peninsula.

Governors Carney and Hogan urged FERC to consider alternative cost methodologies presented in June by PJM’s Board of Managers. Under PJM’s alternative methods for cost allocation, Delmarva ratepayers would fund approximately 7-10 percent of the project costs.

As currently financed, residential and commercial electric ratepayers on Delmarva would fund more than 90 percent of the cost of the project through higher electric bills, while receiving few of the project’s direct benefits. Governors Carney and Hogan previously appealed the cost allocation to FERC, and urged PJM to support a more equitable solution for ratepayers on Delmarva.

“We remain optimistic that FERC will consider a financing plan for this project that will not unfairly burden businesses and families on the Delmarva Peninsula,” said Governor Carney. “As we’ve said all along, as currently financed, this is a bad deal for Delaware ratepayers, who would be asked to finance this project, while receiving few direct benefits. Thank you to FERC commissioners for considering our request to expedite their review. And thank you to Governor Hogan for his continued partnership and leadership on this issue.”

“Our administration has expressed our repeated opposition to any proposal that unfairly and inequitably allocates the costs associated with this project,” said Governor Hogan. “Maryland will continue to stand with Delaware to protect our citizens from disproportionately paying hundreds millions of dollars in rate increases, and we will continue to work with all stakeholders to reach a speedy, reasonable, and equitable solution to this process.”

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