Delmarva Power Signs Power Purchase Agreement with Babcock & Brown for Offshore Wind

June 24, 2008 – Vol.13 No.14

Delmarva Power Signs Power Purchase Agreement with Babcock & Brown for Offshore Wind.

Under this 25-year agreement Delmarva Power will buy up to 200 megawatts of power from an offshore wind farm to be developed by Babcock & Brown’s subsidiary, Bluewater Wind Delaware, LLC. The purchase includes energy, capacity and renewable energy credits.

This contract will be added to a portfolio consisting of up to an additional 170 megawatts of existing, land-based, wind power contracts recently signed by Delmarva Power, all of which are subject to state approval.

Bluewater Wind, the state-selected offshore wind provider, could begin delivering electricity to Delmarva Power’s Delaware customers around the year 2012.

Under the state’s renewable energy goals, Delmarva Power must ensure that 20 percent of its electricity supply comes from renewable sources by the year 2019. Delmarva Power is one of the first investor-owned utilities in the United States to have made contractual commitments that will enable it to meet such aggressive renewable energy goals.

“Babcock & Brown believes this contract is a significant step toward developing Delaware’s first offshore wind farm, which will almost certainly be the first offshore wind farm in the country,” said Hunter Armistead, head of Babcock & Brown’s North American energy group. “This offshore wind farm will bring clean energy, new jobs, and stable rates to Delmarva Power customers.”

Delmarva Power, a public utility owned by Pepco Holdings, Inc. provides energy to nearly 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware. (6/24/08

Links:

Delmarva Power
http://www.delmarva.com

Bluewater Wind
http://www.bluewaterwind.com

Disclaimer, Forward-Looking or Safe Harbor Statement on original press release: No