Governor Larry Hogan and Governor John Carney React to PJM’s Alternative Financing Methods for Artificial Island Project
Governors Thanked PJM and Urged FERC to Consider Cost Allocation that Will Not Unfairly Burden Delmarva Ratepayers
ANNAPOLIS, MD – Maryland Governor Larry Hogan and Delaware Governor John Carney on Friday thanked PJM’s Board of Managers for presenting alternatives to financing the $279 million Artificial Island transmission line project, and urged the Federal Energy Regulatory Commission (FERC) to consider a new cost allocation that will not unfairly burden electric ratepayers on the Delmarva Peninsula.
“It is encouraging that PJM listened to the concerns of the citizens of Maryland and Delaware and developed alternative cost allocation methods that are much more equitable to Delmarva residents and businesses,” said Governor Hogan. “This is a significant step in the right direction, however we will continue to push for FERC to adopt this new plan in a timely manner so the project can move forward in a way that treats Maryland ratepayers fairly.”
“This is a positive first step, and we’re optimistic that PJM has presented alternative financing for the Artificial Island project that would not unjustly burden Delaware electric ratepayers. We’re hopeful that the Federal Energy Regulatory Commission will seriously consider these newly-proposed alternatives. And we will continue to work closely – alongside Delaware’s Public Advocate, the Public Service Commission, and Delaware’s federal delegation – on this issue,” said Governor Carney. “As we have said all along, Delawareans and Delaware businesses should not be forced to finance this project through higher monthly electric bills, while receiving little in the way of a direct benefit. We’re thankful to the PJM Board for their thoughtful consideration of this issue.”
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. Under PJM’s alternative methods for cost allocation, Delmarva ratepayers would fund approximately 7-10 percent of the project costs.