Support Offshore Wind Power Testimony

The following is the testimony that Gary Skulnik will provide in support of Governor Martin O'Malley's bill to build offshore wind power off the Maryland coast.


On behalf of Clean Currents, a Rockville based clean energy marketer, I ask you to support HB 1054 with the attached amendments. The amendments we are offering address the following issues:

1.) Customers purchasing wind energy through electricity suppliers should be exempt from the surcharge.
2.) RECs should be sold to the voluntary market.
3.) Industrial ratepayers should share the burden with every other ratepayer.

Clean Currents is a unique energy marketer and we bring a very unique perspective to this important piece of legislation. We are the only energy marketer in Maryland that is exclusively focused on providing green power to our customers. We are the only energy marketer in Maryland that is certified as a B-Corp, a third party independent confirmation of our sustainable business operations. We are probably the only energy marketer in the state that is supporting this offshore wind energy bill. We support this bill because we know that we need to make a major energy transition in Maryland to address significant issues like clean air, climate change, in-state generation, and the creation of green jobs. The installation of offshore wind will do much to bring Maryland one step closer to a true clean energy future.

As an energy marketer, we believe in the benefit of the competitive market in Maryland. The competitive market benefits consumers and helps spur private sector growth. It also spurs innovative products and services that the traditional utilities are either too slow to adopt or unwilling to adopt. We do not believe that this bill will harm the competitive market in any meaningful way. It was written in a way that preserves the competitive market in Maryland.

We have three amendments we’d like to propose. We hope that the first two would be considered friendly amendments by the bill’s sponsors and supporters.

1. Marylanders who are purchasing wind energy through competitive electricity suppliers should be exempt from any surcharge for offshore wind.

It’s an issue of fairness, first and foremost. If a resident or business is already doing their part to support the creation of new clean energy generation, they should not be asked to pay twice. Also, if this amendment is not adopted, the bill may have the unintended consequence of depressing the voluntary clean energy market. I do not believe this is the intent of the bill’s sponsors. If consumers believe they would be paying for wind twice, they are less likely to switch to a wind energy product provided by a competitive energy supplier. Our ability to grow market share would be harmed if this amendment is not adopted.

There would be some implementation issues to resolve if this amendment is adopted, but they should not be overly difficult. Montgomery County managed to track clean energy purchases in conjunction with competitive energy suppliers and the utilities through its Clean Energy Rewards Program. The Public Service Commission could simply follow that model.

2. RECs should be allowed to be sold to whoever wants to buy them.

The current language in the bill requires the utilities to sell the RECs from the offshore wind projects to entities that will use them for compliance with the Maryland RPS. But what if a company like Clean Currents or others wants to buy additional RECs to sell to Marylanders as a “Maryland Wind” product? That should not be prohibited. In fact, if REC sales are opened up to any buyer, thus increasing the demand side, the price of these RECs is likely to go up, which will help keep the costs of the offshore wind to consumers down.

3. Industrial ratepayers should not be exempt from the surcharge at any level of usage.

The workers at large steel plants or other manufacturers stand the most to gain from the jobs associated with offshore wind production. In fact, the wind turbines used to produce offshore wind power have to be manufactured close to the place they would be used, so they cannot be made in China or India. They will almost certainly be made in Maryland or somewhere close. If the manufacturers are thus benefiting from this bill, they should share the cost of the bill with all the other ratepayers. This will help bring down the cost to the other ratepayers and would be the most fair thing to do.

In conclusion, Clean Currents has been proud to be actively supporting offshore wind for Maryland. We have helped get petitions signed, publicize events, and supported the lobbying efforts of the environmental advocacy groups. We ask you to give HB 1054 a FAVORABLE report with the amendments we are proposing.