Full Go-Ahead Awaits Federal Cost Allocation Decision
Today, December 20, 2018, the Delaware Public Service Commission granted Silver Run Electric’s Certificate of Public Convenience and Necessity. In doing so, the Public Service Commission determined that the Artificial Island electric transmission line project, which will resolve Mid-Atlantic grid reliability problems impacting the region, is in the best interest of Delaware electric consumers.
The approval was issued with a condition that the Federal Energy Regulatory Commission make a timely decision selecting among cost allocation alternatives under consideration – which would assign about4 to 6 percent of project costs to Delaware. Silver Run Electric remains committed to working alongside the Delaware PSC and other partners to finalize a fair cost allocation for Delawareans.
The regional grid operator, PJM, has determined the transmission project is needed to strengthen the grid by June 1, 2020, and if left unaddressed, could lead to widespread electric reliability issues in the region. In 2015, PJM selected Silver Run Electric’s proposal as the best solution to the identified reliability issue in one of the nation’s first competitive transmission processes. Among the factors that led to its selection,Silver Run Electric provided a cost-effective solution, innovative construction plan, and a first-of-its-kind cost cap that protects electric consumers against potential cost overruns.
Silver Run Electric is hopeful that a decision fairly allocating costs will be issued in the near term, allowing for the full release of its construction contractors to bring this important project in-service to benefit Delaware and the region.
What the project does for Delaware
- Resolves regional reliability issue that could lead to widespread blackouts, including the Delmarva Peninsula
- Makes the grid more efficient and reduces energy costs for consumers in Delaware – PJM estimates about $10million in annual load savings for Delaware
- Estimated $100 million infrastructure improvement/investment in Delaware
- Generates half million dollars in property tax revenues in Delaware
- Construction employment of about 30 employees over course of approximate 18-month construction cycle
- Improves grid resiliency through amore interconnected system in Delaware
More information about the project can be found on SilverRunElectric.com