Conectiv Energy Asks To Compete For Wind Project

Conectiv Energy has assembled a team of experienced project developers who are prepared to compete to establish an offshore wind park to serve as a long-term power supply for Delaware customers of Delmarva Power.

The team includes Tenaska, an international energy project developer, Wind Energy System Technology (W.E.S.T.), an offshore wind equipment manufacturer and Conectiv Energy.

  • Conectiv Energy, a 1.3 billion asset based competitive business in and employing over 300 people in Delaware, owns and operates 3,700 MW of capacity (50% in Delaware),
  • Tenaska, Inc., which has developed, financed and constructed approximately 9,000 MW of capacity in its 20 year history from Washington State to Virginia, is ranked by Forbes Magazine as the 16th largest (by 2005 revenue) privately held company in the United States, and
  • Wind Energy Systems Technology (WEST) whose founders have over 40 years experience in building off-shore platforms, hold over 80 patents concerning off-shore construction and operation, are special consultants to the US Mineral Management Service for code and specification development for off shore wind farms in federal waters, and who are the first firm in the United States to receive a permit to build an offshore wind farm (a 300 MW wind farm off the coast of Texas).

Conectiv Energy brought the team together in support of its petition to the Delaware Public Service Commission asking the commissioners for the right to compete for the long-term power supply contract. We intend to continue building this team if we are permitted to submit a wind proposal.

The PSC has granted Bluewater Wind the exclusive right to negotiate with Delmarva Power for a long-term power purchase agreement for wind-based power generation while requiring NRG Energy and Conectiv Energy to compete for the backup power purchase agreement.

Conectiv Energy submitted the lowest-cost and highest-ranked bid in a year-long state-supervised process for a long-term power supply agreement for a natural-gas plant at its Hay Road site near Wilmington, Delaware. But the state agencies rejected Conectiv Energy’s proposal in favor of a hybrid-wind approach based in southern Delaware.

Conectiv Energy has asked the Public Service Commission to reconsider its decision and for the right to negotiate exclusively with Delmarva for the long-term contract at the Hay Road site.

If the state insists upon its hybrid wind concept, Conectiv Energy, which is based in Delaware, maintains that it should at least be permitted to compete for the wind portion of the project.

An exclusive, sole-source deal with Bluewater Wind will cost consumers millions of dollars in rate increases and above-market costs. The company, which has more than a decade of experience in the energy marketplace, believes that consumers are best served by competition.