Bloom Energy factory delayed by Delmarva

More than a month after lawmakers rushed through a Bloom Energy fuel cell bill, the Public Service Commission is still waiting to receive key pricing information from Delmarva Power before ground can be broken on a factory the California firm plans to build in Newark.

The delay could alter Bloom's original construction timetable...

In June, Gov. Jack Markell announced that Bloom had agreed to put a fuel cell factory in Newark on part of the site of the old Chrysler assembly plant. Bloom planned to cluster fuel cell units on a site in Red Lion to generate 30 megawatts of power to the regional grid.

Fuel cells use an electrochemical reaction to convert natural gas into electricity, with less emissions than gas alone.

The state pledged $16 million in financial incentives toward the factory, which would generate 900 or more jobs.

But the Red Lion plan relied on a surcharge on Delmarva Power customers' electricity bills to subsidize Bloom electric sales. To enact that surcharge, Delmarva Power is required to file two proposed tariffs with the PSC.

One would set a proposed price to Bloom for Delmarva's natural gas, which would power its fuel cells. The other would determine how much Delmarva customers would pay for the renewable benefits of Bloom's fuel cell energy.

Delmarva will not actually be purchasing the electricity created by Bloom's fuel cell generators. It will be buying the environmental attributes created by the energy, which will help Delmarva satisfy its state renewable energy purchase requirements.

"It's just complicated, and that's what's taking so long," said Delmarva spokeswoman Bridget Shelton.

The filing is not expected until next week at the earliest, she said.

Shelton said the monthly increase on residential electric bills will be between $1 and $2 per month. That, she said, is a levelized average over 21 years. The premium will be higher in the early years and less in the later years, she said.

Delmarva's latest projection is higher than its initial guess of 70 cents per month.

Markell's spokesman, Brian Selander, said that despite the delay, the goal is still to have people working on the Newark project this year.

"It's a complex process that requires coordination and significant work to get done," Selander said.

Bloom spokeswoman Kelly Seelig said Bloom's goal is still to break ground on its Delaware manufacturing facility before the end of this year.

Delmarva and Bloom intended to have 10 of the 30 megawatts of power up and running by the end of this year, Shelton said.

"I don't know if that's doable given where we are," Shelton said. "We don't know how long the regulatory process will take."