Energy giant PJM is unveiling two new options for its controversial Artificial Island project that greatly ease potential costs to First State utility customers.
PJM rebooted its plans in March to lay a transmission line across the Delaware Bay from New Jersey, but with a much cheaper bill at $165 million.
Originally, Delmarva Power customers were going to shoulder more than 90 percent of the cost for the project.
But two new alternatives released this week exponentially cut that figure to between 7-10 percent.
“When I heard this and saw these numbers I almost fell out of my chair. I was so surprised and excited and I think it is a huge step towards fairness,” said Rep. Trey Paradee (D-Dover West), chair of the House Energy Committee.
In the past, Paradee and others have complained that the few reliability benefits Delaware could get from the Artificial Island project aren’t worth what residents would have to pay for.
The way they would reduce costs is by sharing those costs among 20 other utilities in the Mid-Atlantic.
“They’re able to spread the costs out among a significantly larger [customer base] so it’s not as big of an impact to these larger utilities in larger states than it would be to us,” Paradee said.
PJM isn’t endorsing any of the three rate-sharing proposals. Instead, all three will go before the Federal Energy Regulatory Commission.
In a statement, Gov. John Carney (D) applauded the move. "This is a positive first step, and we're optimistic that PJM has presented alternative financing for the Artificial Island project that would not unjustly burden electric ratepayers on Delmarva."
Federal regulators will review the new plans soon.
