Bill Text: DE SCR90 | 2015-2016 | 148th General Assembly | Draft
Bill Title: Expressing The 148th General Assembly's Opposition To Pjm Interconnection's Current Cost Allocation For The Artificial Island Transmission Project, Supporting The Delaware And Maryland Public Service Commissions' Petition For Rehearing Before The Federal Energy Regulatory Commission In Docket No. El 14-95-000, And Creating A Regional Legislative Electric Transmission Cost Equity Committee To Protect Delaware And Delmarva Transmission Zone Ratepayers.
Spectrum: Slight Partisan Bill (Democrat 15-8)
Status: (Engrossed - Dead) 2016-07-01 - Passed in House by Voice Vote [SCR90 Detail]
Download: Delaware-2015-SCR90-Draft.html
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SPONSOR: |
Sen. McDowell & Rep. Paradee Sens. Bushweller, Ennis, Hall-Long, Henry, Lawson, Marshall, Pettyjohn, Poore, Sokola;Reps. Briggs King, Collins, Hensley, Jaques, Keeley, Matthews, Osienski, Spiegelman |
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DELAWARE STATE SENATE 148th GENERAL ASSEMBLY |
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SENATE CONCURRENT RESOLUTION NO. 90 |
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EXPRESSING THE 148TH GENERAL ASSEMBLY'S OPPOSITION TO PJM INTERCONNECTION'S CURRENT COST ALLOCATION FOR THE ARTIFICIAL ISLAND TRANSMISSION PROJECT, SUPPORTING THE DELAWARE AND MARYLAND PUBLIC SERVICE COMMISSIONS' PETITION FOR REHEARING BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION IN DOCKET NO. EL 14-95-000, AND CREATING A REGIONAL LEGISLATIVE ELECTRIC TRANSMISSION COST EQUITY COMMITTEE TO PROTECT DELAWARE AND DELMARVA TRANSMISSION ZONE RATEPAYERS. |
WHEREAS, the Delaware General Assembly is committed to ensuring that electricity delivered in this State is reliable, affordable, and derived from a diverse and sustainable portfolio of generation sources; and
WHEREAS, PJM Interconnection, L.L.C. ("PJM") is the regional transmission organization that operates the electricity grid and coordinates the movement of wholesale electricity the State of Delaware and all or parts of 12 other states and the District of Columbia, collectively serving more than 61 million electric ratepayers; and
WHEREAS, in April 2013, PJM issued a request for proposals for technical solutions to improve operational performance at the Artificial Island nuclear facilities in New Jersey in order to improve stability, reduce operational complexity, and allow for the generation of maximum power from the three nuclear units; and
WHEREAS, load demands or supply deficiencies within the Delmarva Peninsula did not cause a need for the Artificial Island project; and
WHEREAS, PJM's selected solution for the Artificial Island project involves Northeast Transmission Development, an affiliate of LS Power, constructing a new, $146 million, 230kv transmission line connecting the Artificial Island nuclear generators to a new substation in Delaware, and PSE&G performing an estimated $254 million of upgrades at the Artificial Island complex in New Jersey; and
WHEREAS, while the transmission owners in PJM have the authority to determine how costs for approved transmission projects are allocated to ratepayers, the Federal Power Act and principles of cost causation require that all approved costs be roughly commensurate with expected benefits and "reflect to some degree the costs actually caused by the customer who must pay them"; and
WHEREAS, the Delmarva Transmission Zone of PJM currently allocates costs for PJM-approved transmission projects to the State of Delaware (60%) and the eastern shores of Maryland (35%) and Virginia (5%); and
WHEREAS, the Delaware Public Service Commission has estimated that, under the PJM transmission owners' current, unjust cost allocation methodology, electric ratepayers in the Delmarva Transmission Zone will be responsible for paying approximately $354 million of the Artificial Island project's estimated $410.5 million cost while receiving less than 10% of the project's estimated benefits; and
WHEREAS, Delaware's Congressional delegation, Delaware Governor Jack Markell, the Delaware and Maryland Public Service Commissions, the Delaware Office of the Public Advocate, the Maryland Office of the People's Counsel, Old Dominion Electric Cooperative, LS Power, the Delaware State Chamber of Commerce, and other stakeholders have challenged the cost allocation for the Artificial Island project in proceedings pending before the Federal Energy Regulatory Commission ("FERC") in Docket No. EL15-95-000; and
WHEREAS, on April 22, 2016, FERC issued an Order approving PJM's cost allocation for the Artificial Island project over the dissent of FERC Commissioner LaFleur; and
WHEREAS, the Delaware and Maryland Public Service Commissions, along with the Delaware Office of the Public Advocate, the Maryland Office of the People's Counsel, Old Dominion Electric Cooperative, LS Power, and other stakeholders have filed requests for rehearing, which FERC granted on June 21st, 2016; and
WHEREAS, the General Assembly finds that the current cost allocation for the Artificial Island project is unfair and inequitable to Delaware and Delmarva Transmission Zone ratepayers and inconsistent with recognized principles of cost causation; and
WHEREAS, the General Assembly wishes to lend its voice and support to the efforts of other Delaware and Delmarva Transmission Zone stakeholders challenging the current Artificial Island cost allocation in rehearing proceedings pending before FERC in Docket No. EL15-95-000, as well as any potential court proceedings related to this matter.
NOW, THEREFORE:
BE IT RESOLVED by the Senate of the 148th General Assembly of the State of Delaware, the House of Representatives concurring therein, hereby expresses opposition to the current cost allocation for the Artificial Island project as unjust and unfair to the ratepayers of Delaware and the Delmarva Transmission Zone.
BE IT FURTHER RESOLVED that the General Assembly hereby joins Delaware's Congressional delegation, Governor Jack Markell, the Maryland and Delaware Public Service Commissions, the Delaware Office of the Public Advocate, the Maryland Office of the People's Counsel, Old Dominion Electric Cooperative, LS Power, and other stakeholders in supporting the Petitions for Rehearing filed with FERC in Docket No. EL15-95-000.
BE IT FURTHER RESOLVED that a Regional Legislative Electric Transmission Cost Equity Committee (the "Committee") is hereby created for the purpose of exploring all potential means for protecting electric ratepayers in Delaware and the Delmarva Transmission Zone from the current unjust and unfair cost allocation of the Artificial Island Project.The Committee shall be comprised of 7 members as follows:
(1) The Chairs of the Senate Energy and Transit Committee and the House Energy Committee, who shall jointly act as co-chairs.
(2) Two members of the Senate, 1 appointed by the President Pro Tempore and 1 appointed by the Senate Minority Leader.
(3) Two members of the House of Representatives, 1 appointed by the Speaker of the House and 1 appointed by the House Minority Leader.
(4) The Controller General, or the Controller General's designee.
BE IT FURTHER RESOLVED that any elected member of the Delaware Senate or House of Representatives may join the Committee in an ex officio, nonvoting capacity.
BE IT FURTHER RESOLVED that the Committee may consult with legislators from Maryland and Virginia, and may expand its membership to include any legislators from such states who wish to also challenge PJM's unjust and unfair cost allocation for the Artificial Island project.
BE IT FURTHER RESOLVED that the Committee shall be expressly authorized to intervene as a party in rehearing proceedings pending before FERC in Docket No. EL15-95-000 or in any related court proceeding where cost allocation for the Artificial Island project is at issue.
BE IT FURTHER RESOLVED the Controller General's office shall provide assistance to the Committee.
BE IT FURTHER RESOLVED that, upon passage, suitably prepared and duly authenticated copies of this Concurrent Resolution be delivered to PJM Interconnection; the Federal Energy Regulatory Commission, for filing in Docket No. EL15-95-000; the Delaware Public Service Commission; the Maryland Public Service Commission; the Delaware Public Advocate; the Maryland Office of the People's Counsel; the Virginia State Corporation Commission; and such members of the Maryland and Virginia legislatures as the Committee deems appropriate.
SYNOPSIS
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This Concurrent Resolution expresses the General Assembly's opposition to the current cost allocation for the Artificial Island transmission project and creates a 7 member Regional Legislative Transmission Cost Equity Committee to protect Delaware and Delmarva Transmission Zone ratepayers from the current unjust and inequitable cost allocation, with such Committee having specific authority to intervene as a party in the rehearing proceedings pending before FERC or any subsequent court proceedings where the cost allocation for the Artificial Island transmission project is at issue. Author: Sen. McDowell |
