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Governor Larry Hogan and Governor John Carney Respond to PJM Reevaluation of Artificial Island Cost Allocation

ANNAPOLIS, MD – Today, PJM’s Board of Managers agreed to provide additional data and analysis that could lead to a new cost allocation for the $279 million Artificial Island transmission line project.

The decision comes a week after Governor John Carney and Maryland Governor Larry Hogan urged PJM in a letter to assist Delaware and Maryland in opposing the current cost allocation. As currently funded, Delmarva Peninsula ratepayers would fund 90 percent of the cost of the project through higher electric bills, while receiving few direct benefits.

“Without action from federal regulators, Maryland residents and businesses still stand to pay an unfair share of the costs. With that in mind, we welcome any action on PJM’s part to address our serious concerns,” said Governor Hogan. “This is a step in the right direction, but we will continue to advocate for fair and equitable division of costs among ratepayers.”

“Under the current cost allocation, this project is a bad deal for Delawareans and Delaware businesses,” said Governor Carney. “We are hopeful that new data and analysis from PJM will help lead to a fair cost allocation – one that doesn’t ask ratepayers on Delmarva to pay higher electric bills, without receiving much in return.”

Delaware and Maryland have appealed the current cost allocation to the Federal Energy Regulatory Commission (FERC). Governor Carney and Governor Hogan urged PJM to support the rehearing in their letter.

 

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