Attachment

ATTACHMENT #1 Utility Committee Meeting of 01/14/2008 CITY OF DOVER DRAFT PROPOSED RESOLUTION COUNCIL RESOLUTION NO. 2008-02 CITY OF DOVER'S SUPPORT FOR ENTRY OF POWER SUPPLY CONTRACT WITH BLUEWATER WIND. 1 WHEREAS, the Electric Utility Retail Customer Supply Act of 2006 required Delmarva Power to 2 seek new, Delaware based power generation, to assist in providing stable prices and a reliable 3 energy source to Delmarva's customers; 4 WHEREAS, in compliance with that legislation State Agencies issued a Request for Proposals and 5 received proposals from three different companies, each offering different means of generating 6 power; 7 WHEREAS, one of the responses to that Request for Proposals was submitted by Bluewater Wind 8 for the construction of offshore wind turbines to provide a renewable, reliable, Delaware-based 9 energy source; 10 WHEREAS, after significant public input, research and review, on May 22, 2007, the Public Service 11 Commission, Delaware Department of Natural Resources and Environmental Control, the Office 12 of the Controller General, and the Office of Management and Budget determined that Delmarva 13 should enter into negotiations with Bluewater Wind to construct an offshore windfarm to meet 14 Delaware's power supply needs now and in the long-term; 15 WHEREAS, on April 27, 2007, the Delaware Municipal Electric Corporation (“DEMEC”) and 16 Bluewater Wind entered into a Memorandum of Understanding (“MOU”) for the purchase by 17 DEMEC of electrical power produced by the Bluewater Wind Project; 18 WHEREAS, the City of Dover is a member of DEMEC and the citizens of Dover will benefit 19 greatly from the Bluewater Wind Project; 20 WHEREAS, since that time Bluewater Wind and Delmarva have been in negotiations for Bluewater 21 Wind to supply power to Delmarva's customers; 22 WHEREAS, Bluewater Wind has taken numerous steps to address concerns raised regarding the 23 construction and operation of the windfarm, including re-working their pricing structure to 24 significantly lower the cost increases and to establishing significant penalties to Bluewater Wind if 25 they do not perform as promised; 26 WHEREAS, a contract between Delmarva and Bluewater Wind has been drafted and presented to 27 the Public Service Commission, Delaware Department of Natural Resources and Environmental 28 Control, the Office of the Controller General, and the Office of Management and Budget for their 29 approval; 30 WHEREAS, the Public Service Commission Staff have given the contract a favorable review;

Draft Council Resolution No. 2008-02 City of Dover's Support for Entry of Power Supply Contract with Bluewater Wind Page 2 31 WHEREAS, on December 18, 2007, the Public Service Commission, Delaware Department of 32 Natural Resources and Environmental Control, the Office of the Controller General, and the Office 33 of Management and Budget met to consider the terms of the contract but instead decided to postpone 34 the vote; 35 WHEREAS, the Bluewater Wind Project will provide a substantial, additional source of power for 36 DEMEC’s member municipalities, including the City of Dover, that is easily accessed, reliable, and 37 price-stable, and that offers certain credits and offsets because of its renewability; 38 WHEREAS, having a Delaware-based wind farm will establish the State of Delaware as a leader 39 in providing renewable power to its citizens; and 40 WHEREAS, the construction and operation of a project of this size will provide significant 41 economic development benefits to Delaware; 42 WHEREAS, there has been enough study of this matter and it is time for action on behalf of 43 Delaware's citizens; 44 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE 45 CITY OF DOVER: 46 1. That the City of Dover supports the proposed contract between Bluewater 47 Wind and Delmarva, as it will provide the citizens of Delaware with clean 48 renewable, Delaware-based energy supply and make Delaware a leader in 49 providing renewable energy sources. 50 2. That the City of Dover urges the Public Service Commission, Delaware 51 Department of Natural Resources and Environmental Control, the Office of 52 the Controller General, and the Office of Management and Budget to vote to 53 approve the contract presented by Delmarva and Bluewater Wind as quickly 54 as possible. 55 3. That such approval will enable DEMEC and its member municipalities, 56 including the City of Dover, to move forward with the MOU with Bluewater 57 Wind for the purchase of renewable wind power. 58 ADOPTED: * 59 Actions History: Jan 14, 2008 - Introduced in Utility Committee