The Federal Energy Regulatory Commission denied a rehearing request on the cost allocation for the $278 million Artificial Island transmission line project and established an allocation that will reduce future costs for businesses and residential electric ratepayers on Delmarva.
As previously calculated, businesses and families in Delaware and Maryland would have funded more than 90 percent of the costs of the project, while receiving a fraction of the benefits. The adjusted allocation will reduce Delmarva’s share of the cost to just over 10 percent — resulting in more than $200 million in savings to families and businesses on the peninsula.
Delaware Gov. John Carney and Maryland Gov. Larry Hogan issued statements March 1 on FERC’s ruling.
“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 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 Gov. 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.”
"Since the beginning of this process, our administration has worked tirelessly to ensure that Delmarva Peninsula ratepayers and taxpayers did not have to disproportionately pay hundreds of millions of dollars associated with this project," said Hogan. "The decision from the Federal Energy Regulatory Commission, to significantly reduce future costs to just over 10 percent, is a win for both Maryland and Delaware citizens. We will continue to work with all parties to ensure an equitable solution is reached for our citizens, and we thank Gov. Carney for his partnership as well as the commission for their important work on this issue.”
Previously, Hogan and Carney sent a joint letter opposing the cost allocation and urged the commission to expedite their review of the project.
Delaware’s federal delegation — Sens. Tom Carper and Chris Coons and Rep. Lisa Blunt Rochester — also issued a statement on FERC’s ruling.
“The Federal Energy Regulatory Commission’s decision is one that we’ve been working toward for a long time now. Our Delaware and Maryland ratepayers were being asked to pay an unfair share of this project, and we went to work to prove this. FERC’s corrected course is just the outcome we hoped to deliver to ratepayers on Delmarva, and was a great team effort on behalf of all of our constituents,” the delegates wrote.