O'Malley Offers Initial Year Cost Cap for Maryland Long-Term Wind Contracts Proposal

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Maryland Governor Martin O'Malley has offered several amendments to HB 1054, which would require long-term contracts between the state's utilities and offshore wind development, to attempt to reduce the cost impact of the procurements and blunt opposition to the contracts.

Chief among the amendments is a requirement that the PSC reject any long-term contract that would raise retail bills by more than $2 a month for the first year. Initial estimates for the costs of the contracts, to be between 400 MW and 600 MW, ranged from $1.50 and $8 per month, though revised estimates have lowered the expected impact.

HB 1054 calls for any costs or savings from the offshore wind contracts to be, "shared equitably among all customers and across all distribution territories," through use of a nonbypassable surcharge.

Output and other products from the generation would be sold into the market.

Sales by electric suppliers in excess of 75,000,000 kilowatt-hours of industrial process load to a single customer in a year would be exempt from the nonbypassable. surcharge.

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