Delaware, Maryland win victory in battle over expensive power line


The Federal Energy Regulatory Commission (FERC) denied the rehearing request filed by PJM Transmission Owners and New Jersey parties in proceedings to determine the share of costs for an expensive new transmission line.

The decision was a big victory for Delaware and Maryland, both of which had been slated to pay the bulk of the cost of the $280 million powerline.

The line, which would run into Delaware, would aid the stability of electric power coming out of the Artificial Island nuclear power plant complex in New Jersey

“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 Delaware Gov. John 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 (Maryland) 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.”

The DelawarePublic Service and the Public Advocate issued the following:

“FERC’s decision on February 28th regarding the cost allocation of the $278 million Artificial Island project is a huge win for the Delmarva Zone (Delaware and Maryland). This decision avoids more than $200 million in cost to Delaware residents, and businesses. We want to thank Governor Carney for his leadership on this issue, the federal delegation, the General Assembly, and Governor Hogan of Maryland. The Public Service Commission and Division of the Public Advocate joined the fight to lower costs to the Delmarva Zone. This is a huge win for Delaware ratepayers.”

The nuclear power plant complex’s stability is an issue, thanks in part to its location in a rural area that is some distance away from major population centers

The original formula called for Delmarva ratepayers to pony up more than 90 percent of the $280 million cost of the project, even though they receive few benefits.

FERC’s recent ruling, however, is a significant win for Delaware that will save local ratepayers tens of millions of dollars, according to a release from the Delaware State Chamber of Commerce.

According to the State Chamber, Delmarva area electric customers will pay slightly more than six percent of project costs.

The Delaware State submitted materials in support of the Delaware and Maryland Public Service Commission’s arguments at FERC. State Chamber member LS Power was selected to build a significant portion of the project through a competitive bidding process.

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