O'Malley offers further compromise on wind
Electricity customers would pay a maximum of $2 extra per month if Gov. Martin O'Malley's proposal to create an offshore wind farm gains passage this year.
The rate increase limit would extend for the life of the 25-year contract and be indexed to 2011 dollars under administration's latest compromise, aimed at allaying legislators' concerns about cost. Earlier, O'Malley had pitched a $2 cap in the first year only. Senators have been so nervous about the bill that they floated the idea of a study.
"We've always believed the cost would be lower than $2, which is why the amendment wasn't there in the first place," said Shaun Adamec, a spokesman for O'Malley. "Working with legislators, the original amendment was to provide some certainty where legislators said it didn't exist."
The new amendment, Adamec said, "is an extension of that certainty. We believe costs will go down after the first year."
Some lawmakers have said the cost of offshore wind is likely to be far higher than the administration believes.
Economic Matters Chairman Dereck E. Davis said the extended $2 increase limit "certainly is helpful."
Davis, a Prince George's County Democrat, said his committee would continue working on the bill all week and could vote on it as soon as early next week.
Asked whether there are enough votes on his committee to move the bill to the floor, Davis said, "more members are growing comfortable with the idea."
The legislation also is being considered by the Senate Finance Committee.
Business columnist Jay Hancock has a discussion about the wind proposal over on his blog.
Categories: 2011 legislative session
Comments
$2 a month?? Why would we be paying an extra $2 a month for a wind farm? This is starting to sound like another great idea our state legislature had........deregulation.
Posted by: Dave | March 30, 2011 3:32 PM
This wind farm surely can't provide electricity to all of Maryland. So, why do I have to pay $2 a month for something that I don't receive?
Posted by: John | March 30, 2011 3:45 PM
This $2 is total bull. It's amazing what numbers the politicians will pull out of the air to persuade the BGE ratepayers that ineffective technology somehow can be transformed into some miraculous benefit to the environment. The question is......to who's benefit? This State is right up there with California........Dems could waste your money on the Tooth Fairy and would still be re-elected.
Posted by: MikeK | March 30, 2011 3:52 PM
Sorry you can't just blindly follow MOM on this one.
All he is doing is padding his green resume.
This issue needs a thorough study and none of MOM's cronies should benefit from this being enacted .
Posted by: john | March 30, 2011 4:32 PM
Isn't it strange that a lot of these "green" firms who are doing this are full of former O'Malley people.
Posted by: Jason | March 30, 2011 4:32 PM
Julie, you need to read the Governor's amendments more carefully. They require the PSC in 2012 to project what the potential costs could be starting in 2016 or so. If that projection falls at $2.00 or lower, then the contract can be approved. But when it comes time to pay the actual costs... whatever those actual costs are will be paid by residential ratepayers, even if they're higher than the projected $2.00. There is no "cap."
Posted by: mdenergygal | March 31, 2011 10:10 AM
You folks do realize that ratepayers have to pay whenever a new project comes to MD, be it coal, nuclear, or wind, right? None of that is free. Our other choices are polluting coal, nuclear, or natural gas. You've got a choice between dirty water and air with new fossil fuel generation, or $2 a month for ONE YEAR on your electricity bills, which is easily offset by changing a few light bulbs to CFLs. And may I remind you that it's impossible for Maryland to meet its mandatory RPS without offshore wind. IMPOSSIBLE. Hello?!
Posted by: Jamie | March 31, 2011 11:44 AM
If this was as good as the Governor proposes, then private investors would be all over it!!!!!!!!
Posted by: Progressive's are dangerous to liberty | March 31, 2011 12:33 PM
The key words here are "...indexed to 2011 dollars...". By the end of the 25 year contract we'll be paying upwards to $10 extra, and more once they need emergency fund for maintenance. More promises by a governor who tries to sell one bill of goods after another. Just check his record on promises so far. Good article: http://www.gazette.net/stories/03252011/polilee200028_32547.php
You won't see this in the Sun. They probably won't post this, too bad.
Posted by: commonsense | March 31, 2011 1:18 PM
@ Jamie: You are mistaken. Whatever the monthly charge is will be paid for the life of the contract, which is a minimum of 20 years.
Posted by: mdenergygal | March 31, 2011 6:07 PM