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Federal ruling drops Artificial Island costs for ratepayers on Delmarva Peninsula


Ratepayers in Delaware and Maryland appear to largely off the hook for the cost of the Artificial Island project.

The Federal Energy Regulatory Commission shifted the cost allocation for PJM Interconnection’s transmission line in Delaware and Maryland’s favor.

The commission initially approved the two states paying for more than 90 percent of the $278-million project, while getting only 10 percent of the benefits.

The commission ruled last summer that was unreasonable. This week it set the percentage at 10 percent.

Delaware Public Advocate Drew Slater said it’s a big victory.

“To go from having to pay $220 million of a $278-million project, to then being asked to pay about 10 percent of that is a huge avoided cost,” he said.

Slater adds it will save those customers millions of dollars.

“On the residential side, initially we were looking at about $2 to $4 a month at the 90 percent cost allocation," he said. "Now you’re looking at 10 percent of that. But really on the commercial and industrial side, it’s a huge savings.”

Slater said there is the possibility a party could decide to appeal the decision. PJM is not allowed but other parties may do so. But they only have 60 days or the cost allocation is final.

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