Delaware PSC - Delmarva Power RFP

Department of State : Delaware Public Service Commission

DELMARVA POWER RFP

In compliance with the "Electric Utility Retail Customer Supply Act of 2006" Delmarva Power was obligated to file a proposal to obtain long-term supply contracts by August 1, 2006 and a ten-year Integrated Resource Plan (IRP) by December 1, 2006. In compliance with the Act, Delmarva Power filed its proposal with the Commission, the Delaware Energy Office, the Office of Management and Budget and the Controller General's Office. The proposal included a draft Request for Proposal (RFP) for the construction of new generation resources in Delaware to serve standard offer service customers. The Commission and Delaware Energy Office approved a final version of the RFP and Delmarva Power issued it on November 1, 2006. A number of bids were received on December 22, 2006 and both Delmarva Power and the State Agencies evaluations of the bids were reviewed at a public meeting on February 27, 2007. Public Comment sessions in all three counties were held March 8th - March 12th, 2007. During April, 2007 consultants for the State Agencies filed additional reviews of DP&L's Integrated Resource Plan and a study regarding reliability concerns on the Delmarva Peninsula. Additional Public Comment sessions were held in all three counties in mid-April, 2007.

On May 2, 2007, Staff filed its assessment of the generation bid proposals and on May 8th the State Agencies deliberated on Staff's Report and heard the parties' respective positions regarding the bid evaluations. On May 22nd, the State Agencies voted unanimously to accept Staff's recommendation to direct DP&L to negotiate with Bluewater Wind for an offshore wind facility, as well as to negotiate with NRG and Conectiv for backup power. In June, DP&L filed an appeal of the order in Superior Court, which granted a stay of the appeal per a stipulation by the parties. Negotiations continued throughout the summer under the oversight of a facilitator, engaged by the Agencies to mediate the process. On September 4th, 2007, the deadline for negotiated Purchase Power Agreements was extended until November 20, 2007. On September 14th, DP&L filed term sheets outlining its potential long-term arrangements with the bidders. On October 29th Staff issued its assessment of the proposals. On November 20th, the State Agencies deliberated on the Staff assessment and the merits of the proposals and directed Bluewater Wind and DP&L to finalize an agreement by December 10th as well as putting further negotiations with Conectiv and NRG on hold, pending a final determination of the Bluewater negotiations.

After submitting a list of disputed issues and what it believed to be unacceptable terms, DP&L filed a potential Purchase Power Agreement on December 10th, 2007. On December 12th, an arbitrator who had been engaged for the final negotiations sessions, issued his resolution and commentary on still-disputed matters. On December 12th, the Independent Consultant for the Agencies issued his assessment, with Staff's review and recommendation following the next day. On December 18th, the State Agencies unanimously voted to table the matter.

All RFP related documents can be accessed below. Interested parties should check this webpage for updates.