Legalectric

That’s Idiocy Returning on Parade…

LINK TO DELAWARE PSC’S DELMARVA POWER IRP DOCKET SITE

Tomorrow night in Dover, the Public Service Commission is opening the doors and it’s your turn to let them know what you think about Delmarva Power’s energy policy, how they’re getting their electricity, what sort of generation it’s coming from, what they’re doing (not) about conservation and efficiency, and what sort of generation you want them to use, i.e., get wind on line NOW!  And tell them we don’t need no stinkin’ transmission!

This is your opportunity.  They won’t let parties testify, so it’s your turn to step up to the plate.

Now for some background.  All the PSC blurbs call this the 3rd Delmarva Power IRP, but it’s not, it’s their third attempt to get it right, and the last one was so bad that they spent years trying and last November submitted a redo as asked by PSC, then a month later, they send a lame cover letter saying that they want to count that November redo attempt as the one due December 1, 2008.

So the PSC grabs that November 2008 attempt and accepts it.  EH???

Right… whatever.

Lame Cover Letter – December 1, 2008

IRP Main Document

Appendix A – Load Forecast

Appendix B – Demand Resources

Appendix C – Resource Model Update

Appendix D – Cost Recovery

You might remember Delmarva Power’s Todd Goodman’s outrageous behavior at the last IRP meeting in December, 2008.  AWARD FOR TODD GOODMAN, DELMARVA POWER.

Well, the Delmarva Power IRP saga continues, and the Workshop, Public Comment session…. whatever it is, it’s tomorrow night.

Tell the PSC that it’s time Delmarva Power get serious about conservation, that we want coal plants shut down, that it’s time to get wind on line, and that we do NOT want the Mid-Atlantic Power Pathway transmission line (you know, that line that runs from coal plants SW of Delaware, up through Indian River and to Salem.  PJM admits that the Indian River to Salem part of it is not needed, and it’s time to get the WHOLE truth out, that the entire line is not needed.  See Mid-Atlantic MAPP line cut short).

COME TO THE PSC’S DELMARVA POWER IRP WORKSHOP… PUBLIC COMMENT SESSION… JUST COME AND TELL THEM WHAT YOU THINK?

Delmarva Power’s IRP is based on an annual increase in demand of 1.9%.  Uh-huh… right…

Look what has been happening to electrical use:

Hmmmmmmmmmm, do you see what I seeeeeeeeeeeeee…

Regulated T&D Sales have gone down.

Default T&D Sales have taken a significant dive.

Despite that, what do they project in the IRP?  From their IRP Appendix A:

Energy use, measured in MWh, has been dropping significantly for years… but we knew that…

Now what about peak?  The Delmarva peak isn’t in their 10-Ks, but here’s PJM:

2008 Peak               136,310MW

Projected Peak    134,430MW

DOWN      1,880MW

DOWN           1.4%

And with 165,200MW of generation and a reserve margin of 28.6% (15% necessary) which even PJM describes as “well in excess,” suffice it to say PJM doesn’t need new power anytime soon.

Read it all here:

PJM 2009 Summer Preseasonal Assessment

And here’s some history – PJM’s revenue decreased 8% in 2008 (p. 9 of 44):

2008 PJM Financial Report

And remember, PEPCO, Delmarva Power’s parent, says that it may not sell shares to finance the MAPP line — so how would they finance it… or would they just admit that it’s not needed and not build it?

Pepco CFO May Postpone Investment to Avoid Share Sale

By Katarzyna Klimasinska

June 26 (Bloomberg) — Pepco Holdings Inc.’s new chief financial officer, Anthony Kamerick, is considering postponing some investments beyond 2010 to prevent selling shares below book value.

Pepco, the owner of Washington’s electric utility, currently plans about $1 billion in total capital projects for 2010, mainly on the Mid-Atlantic Power Pathway transmission line and smart grid, Kamerick said. The completion of the transmission line, also known as MAPP, has already been delayed by a year.

“We have to balance, obviously, the need to make sure our system is safe and reliable for the customers,” Kamerick said in a telephone interview yesterday from Washington, where the company is based. “It’s a delicate balance.”

MAPP is scheduled to start service in June 2014 and will run from northern Virginia, across southern Maryland and Chesapeake Bay, to Indian River, Delaware.

Smart grids will be able to detect power failures and automatically isolate them, increasing the reliability of the power system, according to Pepco.

Pepco sold shares at $16.50 each in November and has had a 25 percent decline so far this year. The current price represents 72 percent of book value, or assets minus liabilities, per share, according to a Bloomberg calculation from company data.

Pepco fell 3 cents to $13.39 in composite trading on the New York Stock Exchange.

Kamerick replaced Paul Barry, who resigned, on June 12. He has worked for Pepco and its predecessor, Potomac Electric Power Co., since 1970, most recently as chief regulatory officer.

PJM, Delmarva Power, PEPCO, PHI, whatever, admit that demand is down and that the Mid-Atlantic Power Pathway, the transmission line through Maryland and Delaware to New Jersey, should be delayed

The Mid-Atlantic Power Pathway, or MAPP, is part of PJM’s “Project Mountaineer,” a web of lines expressly designed to move coal generation from the Amos plant in West Virginia and gather other coal and nuclear generation and send it in a northeasterly direction:

See the MAPP line there in the NE section of Project Mountaineer line 4?

PJM has recommended delay of the inservice date for a portion of the MAPP line by a year, the portion from Indian River to Salem nuclear plant.  What remains, however, is a problem, because electrically, it makes no sense to build a 500kV radial line to nowhere.  If part of the line should be delayed, the ENTIRE line should be delayed.

Here’s the corporate Press Release and two “articles” which should be compared!

Press Release from Delmarva site

MAPP: Controversial High Voltage Electric Transmission Line Delayed for One Year

PJM Reinforces MAPP Need: Adds Year to Schedule (states “contributed by Delmarva Power”)

This demonstration of lack of need is something that should be raised in the Delmarva Power IRP docket, that demand is down so significantly that PJM thinks infrastructure construction should be delayed.  And yes, PJM demand is way, way down.

PJM Annual Report Link

So, since demand is so far down, this is a good time to let the PSC know, in the Delmarva Power IRP docket, that we know that demand is down, so far down that they can’t cover anymore and they have to postpone some of their infrastructure construction.  The Hearing Officer is taking public comments on the Delmarva Power IRP until some time in July, I think the 25th.

Send IRP Public Comments to the Hearing Eximaner Ruth Price:

ruth.price@state.de.us

What’s an IRP Comment?  The Integrated Resource Planning process is supposed to be the way a utility plans ahead to cover their demand, and it’s essentially the intersection of energy policy and those #(%&*)#*( utilities.  This is the arena where it’s determined whether they should meet their demand through conservation (the cheapest and environmentally the smallest footprint), efficiency steps like load shifting and SmartGrid,  offshore wind paired with natural gas for backup, and whether external costs of various generation options are taken into account.  SOOOOO, does that give you an idea of what’s up?

See Delmarva Power’s IRP docket at the PSC, scroll down beyond that rulemaking on the top:

PSC’s Delmarva IRP page

And note this sly trick — they couldn’t get their IRP right from last cycle and were told by PSC staff to take it home and try again, and the last revision of that last IRP is the one they submitted:

December 1, 2008 IRP (from last cycle)

And they said in their accompanying letter that this one should be for THIS cycle!   AAAAAAARGH!

So, it’s time to review this joke of an IRP, take a look at PJM load forecasting, look at PJM and PEPCO SEC filings like their 2008 10-K and 2009 1st Quarter 10-Q:

PJM 2008 Load and Forecast Report

Dig up some good conservation reports and sent them in as examples of what can be done.  Let them know that with PJM demand down, we expect some changes, that this is a good opportunity to take a sustainable fork in the road, when demand is down we can make conscious choices.

Once more with feeling, check out the Delmarva Power IRP and send comments to ruth.price@state.de.us.