Delmarva Power spokesman Bill Yingling said his company is disappointed Bluewater Wind didn't alert Delmarva to the mechanical problem during negotiations for a power purchase agreement.
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Delmarva is a reluctant player in negotiations, having been forced by the state to seek a 25-year contract to buy wind power to stabilize electricity prices.Here's why I'm not concerned about the suspension of production of the wind turbines Bluewater Wind plans to deploy off the coast of Rehoboth. First the company, Vestas isn't going out of business; it's just retooling a part in the turbine. Second, the proposed contract includes penalties of up to 68 million if Bluewater doesn't get the the wind farm up and running on time. And once online, if the turbines don't spin, Bluewater doesn't get paid. Bluewater Wind bears the risk, as it should. The company's ability to shoulder the risk was enhanced when Babcock ">
Bluewater executive Jim Lanard shot back at Delmarva:
"We stand by the commitments we've made, and we're surprised that Delmarva would throw out this red herring without speaking to us directly," Lanard said.Given that Delmarva doesn't want to do this deal, it seems to me the company's concerns are just a bit overplayed. I imagine power plants of all sorts face and overcome technical problems. For instance, the Salem nuclear power plant has a history of going offline due to engineering breakdowns, but I haven't heard Delmarva balk at buying electricity from Public Service Enterprise Group, which runs the plant. I don't know that Delmarva Power has ever played up a potential mechanical problem with a supplier as it's doing here.
Source: bio-energy-today.blogspot.com
