Gov.Jack Markell (D-Delaware) is urging the federal government to combat a power cost-sharing plan that he says would sharply raise electric bills for Delmarva consumers in the First State.
Late last month, Markell filed testimony with the Federal Energy Regulatory Commission regarding a complaint by Linden VFT, which owns power lines in New York and New Jersey. Their case is against PJM, a Jersey-based grid manager that also runs lines on the Delmarva peninsula.
The case disputes how the cost of infrastructure upgrades is doled out among power users. The New York case involves more than a billion dollars in total costs, but Markell hopes it'll set a precedent for a smaller PJM project -- on Artificial Island in Delaware Bay.
"That situation is relatively similar to the situation here -- and they thought most effective and fastest way for us to weigh in would be on that case, because it's being considered," said Markell. "And so if that case is ruled the way we want, that would have a positive impact in terms of the way that ours would be ruled on."
Shortly after Markell's testimony was filed, the Delaware Public Service Commission entered its official complaint against PJM. The commission wants FERC to ask for a cost-sharing plan that's "roughly commensurate" with benefits to users in Delmarva Power's area and beyond.
Markell and the Commission say Delawareans and the Eastern Shore would only see about 10 percent of the benefits of PJM's $275 million-dollar plan to upgrade transmission lines on Artificial Island.
But he says Delmarva Power is being asked to pick up nearly 80 percent of the bill. Markell's filing notes it could add up to $37 million to Delmarva Power's expenses, translating to a few dollars or thousands for different-sized users.
"We believe that the cost -- the way it's allocated is being disproportionately borne by the people of Delaware in relationship to the benefits that are being accrued. So we think the cost allocation is unfair," said Markell."We think the cost oughta be shared by all those who would benefit, and people outside of Delaware would benefit as well," said Markell.
The Public Service Commission estimates Delaware ratepayer costs could increase as much as 30 percent by 2018. The Artificial Island project is set for completion the following year. PJM's board authorized it back in July.