GOVERNOR’S ENERGY - Delaware



GOVERNOR’S ENERGY ADVISORY COUNCIL

MEETING MINUTES OF FEBRUARY 22, 2007

PRESENT:

Anderson, Jan DNREC/Delaware Energy Office

Bacher, David NRG

Baker, Robert Delaware Farm Bureau

Baron, Dominique Delaware Nature Society

Buttner, Sarah DOS, Public Advocate

Byrne, Dr. John Center for Energy & Environ. Policy

Cherry, Phil DNREC/Office of the Secretary

Hodas, David R., Chair Widener University School of Law

Kreiner, Andrea A. Kreiner Company

Long, Ray NRG

McDowell, Sen. Harris B. Delaware Legislature - Senate

Nelson, Bob DELDOT

Padmore, Arthur DOS, Public Advocate

Sebastian, Suzanne E. DNREC/Delaware Energy Office

Scoglietti, Robert Office of Management & Budget

Smisson, Jr., Charlie T. DNREC/Delaware Energy Office

Walker, Becky Center for Energy & Environ. Policy

Walling, Lee Ann Governor’s Office

I. CALL TO ORDER AND WELCOME - Chair David R. Hodas:

The Governor’s Energy Advisory Council Meeting was brought to order at 9:35 a.m. by Chair David R. Hodas on February 22, 2007, in Conference Room No. 133 of the Haslet Armory, Legislative Avenue, in Dover, Delaware. Chair Hodas welcomed everyone, introductions were made, and handouts (Report - Grid Could Accommodate Plug-In Cars and The Cash-Back Plug-In) were made available including copies of the January 25, 2007 G.E.A.C. Meeting Minutes.

II. OPENING COMMENTS - Chair David R. Hodas:

The minutes of the January 25, 2007 meeting were approved, accepted, and adopted by the Council.

Chair Hodas welcomed and introduced Senator Harris B. McDowell, III., Chair, Energy and Transit Committee - and Chair, Sustainable Energy Utility Task Force. Senator McDowell briefed everyone on the Delaware Sustainable Energy Utility Plan – as follows:

Governors Energy Advisory Council

Meeting Minutes of February 22, 2007

Page 2

III. SUSTAINABLE ENERGY UTILITY (SEU), Senator Harris B.

McDowell, III:

Senator McDowell said he had a Power Point Slide Show he was going to use; but before that, he wanted to tell a little about himself and his involvement in matters dealing with “energy”. He said he has chaired the Energy Committee in the State Senate for 30 years. Senator McDowell went on to say that for 26 of those years, that committee was the only committee in the State of Delaware dealing with “energy” at least in the Legislature. Some of the things he has sponsored over the years are creating the Energy Office; creating a need for a State Energy Plan; etc. Senator McDowell said that during that long period of time, there have been a lot of drought periods because “energy” is something that the American public seems to take for granted – just behind “air” – and maybe a little more for granted than they take “water”.

Senator McDowell said we are at a crossroads in this country; and we have been there before. We have largely ignored that fact. He continued by saying that President Harry S. Truman, when leaving office, told the nation that there would be an energy crisis. The word “energy” at that time did not appear in any newspaper anywhere. It was very unique for a president to say that upon his saying his last words to the public. President Truman said there was going to be a crisis, and he told us it would come in 1973 or 1974. Nobody paid any attention to him, and we had a shock in 1973. The nation was shocked as to how could this happen. There were “gas lines” everywhere. So, we did a few things back in that era to try and deal with it. And then we elected President Ronald Reagan who said don’t worry about it…it’ll go away. So people didn’t worry about it, and they started to take “energy” for granted again for many, many years.

Senator McDowell went on to say that there are people like Charlie Smisson and Lee Ann Walling - and everyone at this table - who have labored to try to bring “energy” back to importance. Now we have had another shock – within a six-year period, the benchmark price of all energy - which is barreled oil - shot up from somewhere around $14 to around what it is today - around $56 - $60. That is a pretty significant shock for something that is as important to our economy as “energy”. Just to put that in a little bit of perspective – at our current rate of importing oil and taking that increase as an average – we are in the neighborhood of taking a quarter of a trillion dollars of our hard-earned money from our economy and throwing it away overseas – never to recirculate in our economy again. (Senator McDowell facetiously commented - unless Saudi Arabia comes back to buy some warplanes). If that money stayed here and recirculated in our economy, it would equal at least three quarters of a trillion dollars or maybe a trillion dollars – with effect on our economy. He said these are vital matters. We cannot deal nationally with these things – we can only deal statewide.

Governors Energy Advisory Council

Meeting Minutes of February 22, 2007

Page 3

Senator McDowell stated he would start to talk about the Delaware Sustainable Energy Utility and proceeded to introduce his graduate student, Becky Walker, who has done a tremendous amount of work with the team from the Center for Energy and Environmental Policy (CEEP). He also introduced his Co-Chair, Dr. John Byrne, Director of the CEEP. The Senator stated that it is a real gem to have CEEP in our midst. I have always said that one of the most important things for us to combine at the policy level and other levels is energy and the environment. There are only 4 universities in the nation that grant Graduate Degrees in that area. We, in Delaware, are blessed to have one of them. Senator McDowell said he is very pleased to have Dr. Byrne as his right arm in this effort on this task force.

Senator McDowell proceeded to explain in detail his Power Point presentation – Delaware Sustainable Energy Utility. Some of the points he covered follow:

☺ New Direction – Ambitious Goals – By 2015, By 2019

☺ Energy Efficiency - Cost of Efficiency vs.

Price of Retail Electricity

☺ Energy Efficiency - Key Policy Goal

☺ Renewable Energy - Levelized Cost of Electricity for

PV After Incentives

☺ Renewable Energy – Solar Energy

☺ State Renewable Portfolio Standards in the U.S.

☺ Delaware Sustainable Energy Utility – Proposed

Delaware SEU Framework, Target Markets, Delaware’s

Clearinghouse for Sustainable Energy, Create New

Markets & New Jobs, Competitive Market with Public

Oversight, SEU Delivers Packaged Services, Existing

Sustainable Energy Programs in Delaware, SEU Program

Additions, SEU Revenue Sources

☺ Policy Initiatives

☺ Our Best Environmental Policy

Chair Hodas asked if the SEU is a state-owned entity. Senator McDowell said no.

Senator McDowell, in closing, said he previously mentioned 1951 and President Truman. Between 1951 and 1973 ABSOLUTELY NOTHING WAS DONE concerning “energy”. He said we were at a crossroads then and we are at a crossroads now.

Senator McDowell said he believes that it was demonstrated that this SEU will work. He added we would welcome anyone who would like to look at our data. He stated that - again by lowering the base consumption - the longer you wait to lower the base consumption – the less effect you will have. We need to get about this!

Governors Energy Advisory Council

Meeting Minutes of February 22, 2007

Page 4

Phil Cherry said he is a homeowner, and he looks to the SEU for solar efficiency services. Does my relationship with Delmarva Power change? He said he is reducing his “energy consumption” but he still gets a bill from Delmarva for his services from Delmarva. He also said he is not getting a bill from the SEU – he is just using their services.

Senator McDowell said he might eventually get a bill; or he might get a bill that Delmarva sends that has two sides – one is the energy use charged now – and the other is the energy savings.

Sarah Buttner asked how the SEU and its potential impacts affect our energy planning, and how does the current RFP or the IRP process affect the SEU? Senator McDowell said he thinks that the two were put in for the wrong reasons by the wrong people. I think they were putting the cart before the horse. I think the first thing that should have been done – I’ve seen nobody present data that says we need 400 or 600 or 800 new mega- watts of capacity. I think the very first work that should have been done is the development of an empirical data that proves that we “have to have” new capacity. I have not seen that work anywhere. It was simply a word placed in a film by I don’t know who – that we need new capacity. And that generated both the RFP and the IRP. This upsets me. I hope someone wises up – soon about this. The beneficiaries are the ones that want a cleaner Delaware – a more efficient Delaware – and a less costly Delaware.

Lee Ann Walling asked when you talk about doubling the Green Energy Fund, are you also talking about expanding it beyond Delmarva? Senator McDowell said he would love it. Charlie Smisson said all of the municipal utilities are collecting at the same rate that Delmarva is under their own programs.

David Bacher asked if Senator McDowell had an immediate timeline for this to unfold. Senator McDowell said he hoped to have a bill ready to introduce in the spring; and he would hope to move it to Committee Hearings shortly thereafter. He also said he would hope to have it passed before the end of this session. There is no real reason to delay.

Senator McDowell said he was here today to appeal to this Council to help him get this word out and get this done. He said his goal is to get this done as soon as possible.

In closing, regarding the SEU, Senator McDowell said there is nothing we cannot achieve if we have the “will” to do it. He said he will start the process in March to bring about these changes with the Legislature.

Governors Energy Advisory Council

Meeting Minutes of February 22, 2007

Page 5

The Senator stated that he is ready, willing, and able to go anywhere at anytime to help. He also said any comments, suggestions, or criticisms are welcome at the SEU website.

Senator McDowell closed with suggesting reference to the SEU website which is:

. He said for further information, please contact:

Dr. John Byrne, Director, jbbyrne@udel.edu

Center for Energy & Environmental Policy

University of Delaware

278 Graham Hall

Newark, DE 19716

Phone: (302) 831-8405

IV. DELAWARE ENERGY PLAN 5-YEAR REVISION, David R. Hodas:

Chair Hodas stated that this Council has a charge from the Delaware Legislature to put together a State Energy Plan every five years to present to the Governor. Chair Hodas asked Senator McDowell how he saw his idea of SEU going into the mix of a State Energy Plan, and how would the Council go about trying to include that in our general analysis? Senator McDowell answered that he would hope the Council would look at the detail of the work that has been done and how worthwhile it is. Senator McDowell stated that over the years he has worked under six Governors, and ONLY TWO of them have ever paid any attention to “energy” – Governor DuPont and Governor Minner.

Time did not permit a full discussion of the Delaware Energy Plan. This discussion will be an Agenda item for a future Council meeting.

V. MISCELLANEOUS COMMENTS:

Chair Hodas thanked Senator McDowell for coming to this Council meeting and for presenting his slide show on Delaware Sustainable Energy Utility. The Recorder/Transcriber feels that all present considered it to be very informative and an excellent presentation.

Chair Hodas stated that at the March Council Meeting, each of the participants in the RFP is invited to attend and educate the Council as to what is currently going on. This will be useful and helpful to aid the Council in the work that we want to do on the new Energy Plan.

Lee Ann Walling mentioned that a group will be meeting on this coming Monday to discuss such issues. She said she hoped to be able to report to the Council by next month’s meeting.

Governors Energy Advisory Council

Meeting Minutes of February 22, 2007

Page 6

Chair Hodas informed all that he will not be able to attend the March Council Meeting, and that Lee Ann Walling will be presiding over the Council. Chair Hodas also stated that over the next year, the Council will be talking about an RFP for an Energy Plan; and that Energy Plan will be more goal-and-policy oriented.

VI. OLD BUSINESS: There was no old business discussed.

VII. NEW BUSINESS: There was no new business other than what was discussed at today’s meeting.

VIII. NEXT MEETING:

The next meeting will be held as follows:

April 26, 2007 – 9:30 a.m. to 11:30 a.m. (March 22, 2007 Meeting Cancelled)

Conference Room No. 133 – HASLET ARMORY,

122 William Penn Street,

Dover, Delaware

IX. ADJOURNMENT: Today’s meeting was adjourned at 11:20 a.m.

____________________________________________

Jan Anderson, DEO, Recorder/Transcriber

(f:\Energy\Gov’s Energy Advis. Council\02-22-07 Meeting Minutes-REV.

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