Delaware Gov. John Carney and Maryland Gov. Larry Hogan sent a letter Nov. 28 to members of the Federal Energy Regulatory Commission, urging commissioners to expedite their review of the $278 million artificial Island transmission line project and consider a financing model that does not unfairly burden electric ratepayers on the Delmarva Peninsula.
Carney and Hogan urged FERC to consider alternative cost methodologies presented in June by PJM’s Board of Managers. Under PJM’s alternative methods for cost allocation, Delmarva ratepayers would fund about 7-10 percent of the project costs.
As currently financed, residential and commercial electric ratepayers on Delmarva would fund more than 90 percent of the cost of the project through higher electric bills, while receiving few of the project’s direct benefits. Carney and Hogan previously appealed the cost allocation to FERC, and urged PJM to support a more equitable solution for ratepayers on Delmarva.
“We remain optimistic that FERC will consider a financing plan for this project that will not unfairly burden businesses and families on the Delmarva Peninsula,” Carney said. “As we’ve said all along, as currently financed, this is a bad deal for Delaware ratepayers, who would be asked to finance this project, while receiving few direct benefits. Thank you to FERC commissioners for considering our request to expedite their review. And thank you to Gov. Hogan for his continued partnership and leadership on this issue.”