Silver Run Electric (SRE), a member of the LS Power Group, is pleased to announce a significant win for electricity consumers in Delaware and Maryland’s Eastern Shore. After years of efforts to achieve a fair cost allocation for the Artificial Island transmission project, the Federal Energy Regulatory Commission (FERC) today ordered that current rules as applied to the project are unjust and unreasonable and set a procedure to establish rules that more fairly assign costs to project beneficiaries.
What does this mean for residents and businesses in the Delmarva Peninsula?
FERC’s decision will lead to new rules that will result in a substantial reduction in the cost of the Artificial Island transmission project for residents and businesses in the Delmarva Zone. Prior cost estimates for residents and businesses are no longer applicable. The new alternatives identified are expected to lead to Delawareans paying just a fraction of prior estimates.
The project will generate an estimated $10 million of annual savings in Delaware as a result of the electrical grid being able to operate more efficiently, with less congestion and energy loss. This savings is expected to more than offset the cost of the project to Delaware ratepayers, in addition to the primary benefit of making the electric grid more reliable.
Since 2015, SRE has diligently pursued permitting for this project. The FERC ruling helps clear the way for SRE’s receipt of the few remaining approvals needed to start construction in this fall. The estimated $146 million infrastructure investment will bring jobs during the 18‐month construction period and an estimated one million dollars in annual tax revenues to Delaware and New Jersey. SRE’s project will not only address the electrical grid’s stability issue, it will also enhance storm resiliency, increase grid reliability, and improve blackout restoration services.
SRE would like to extend a special thanks to the numerous officials and agencies with whom we’ve worked to ensure fair rates for electric consumers, including Delaware Governor John Carney, Maryland Governor Larry Hogan, Delaware’s Federal Senators and Representatives, the Delaware Public Service Commission, the Delaware Public Advocate, members of the Delaware General Assembly, and several consumer groups.
CASEY CARROLL, PROJECT DIRECTOR