Delaware Gov. John Carney and Maryland Gov. Larry Hogan recently 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 to consider a new cost allocation that will not unfairly burden electric ratepayers on the Delmarva Peninsula.
"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 electric ratepayers on Delmarva. 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," Carney said. "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 more than 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 about 7-10 percent of the project costs.
Carney and Hogan previously appealed the cost allocation to FERC and urged PJM to support a more equitable cost allocation.