Governor S Energy Advisory Council

Governors Energy Advisory Council Meeting Minutes of January 24, 2008

GOVERNOR’S ENERGY ADVISORY COUNCIL MEETING MINUTES OF JANUARY 24, 2008

PRESENT: Bacher, David NRG Bryant, Jacqueline DNREC/Delaware Energy Office Buttner, Sally DEPSC Hodas, David R., Chair Widener University School of Law Kramer, Brian Delaware League of Women Voters Kreiner, Andrea A. Kreiner Company McRae, Arnetta PSC Nelson, Robert DELDOT Scoglietti, Robert OMB Sebastian, Suzanne E. DNREC/Delaware Energy Office Smisson, Jr., Charlie T. DNREC/Delaware Energy Patterson, Gary Delaware Petroleum Council Stone, Jeff DEDO Thompson, Steve Chesapeake Utilities Corporation

I. CALL TO ORDER AND WELCOME - Chair David R. Hodas: The Governor’s Energy Advisory Council Meeting was brought to order at 9:40 a.m. by Chair David R. Hodas on January 24, 2008, in the Conference Room at Delaware Energy Office located 1203 College Park Drive, Suite 101, in Dover, Delaware. Chair Hodas welcomed everyone, introductions were made, and handouts were made available including copies of the November 1st, 2007 GEAC Meeting Minutes. Please note the December meeting was cancelled due for the lack of updates. The Chairman advised The Council of the new consultant for the Five Year Plan. The new consultant is A. Kreiner.

II. REVIEW OF LAST MEETING COMPLISHMENTS - Chair David R. Hodas : The minutes of the November 1st, 2007 meeting were requested to be amended to show the name of the report Mr. Bert Scoglietti planned to present to The Council. The correction will be made and a revised report will be sent. Other than that the minutes were approved, accepted, and adopted by the Council stating the correction.

II. SEU/RGGI/PROPOSED LEGISLATIVE UPDATE – Charlie T. Smisson, Jr., Phil Cherry:

SCR28 Workgroup has a link that is located off of DNREC main home page. It was formed from Resolution 28 that passed legislation last year, which required the formation of a workgroup composted of The Generators. The Generators are governed by the RGGI model Rule, which includes some Environmentalist and Legislators. They have meet for several months and have had four (4) meetings. There is another meeting

1 Governors Energy Advisory Council Meeting Minutes of January 24, 2008 scheduled for February 6, 2008 in Dover. They are trying to answer 2 principal questions that the resolution asked us to consider;

1. What percentage of RGGI allowances do we auction/sell? 2. What do you do with the revenue coming in from those allowances?

The auction will start at 50% and scale up each year 10% to reach 100%. We are ready to hire an auction firm. Some states have opted 100%, other have specifics to their states. All of this information is on the DNREC site. Phil will send site information to The Council. The Council further discussed RGGI.

Charlie updates The Council on SEU updates. The ICF had completed their interviews. They have put together two conference days call “Industry Day” That will be held on February 12th and 13th. Day 1 will be for the Contractor Administrators from 12:00pm to 5:00pm. Day 2 will be for Implementation Contractors from 8:00am to 1:00pm. They have invited 40 different entities. The registration is free, go to www.seu-de.org. Speakers will be Senator Harris B. McDowell, III and Professor John Byrne, Ph.D., University of Delaware. We expect people from all over Delaware.

RFQ - We had responds from Citigroup, Wachovia and PNC. Citigroup was selected to underwrite the bond, because they had the best report and they were economical.

Early launch of the SEU will be funded from the Energy An$wers Program. DNREC Penalty Fund; 25 households in Wilmington will have their Furnaces, Windows, Doors replaced. This will be funded ¼ from the Energy An$wers Program and the rest will come from the Weatherization Program. The contact person for this is Ken Davis of DHSS and Charley Roberson from the Energy Office.

The RFP for the Contract Administrator for the SEU should be done by the end of March or early April.

IV. REQUEST FOR PROPOSAL - THE FIVE YEAR PLAN: Andrea Kreiner:

A. Kreiner was awarded consultant for The Five Year Plan. Andrea discussed what is needed from The Council. There needs to be a Town Hall meeting ASAP. Workgroups can not start until the town hall meetings have started. In order to stay on schedule The Town Hall meetings need to be in February/March. There are 3 phases;

Phase I: Review and develop the exact process. Phase II: Workgroup process 3-5 groups by November. Andrea will be there for all workgroups. Phase III: Written report with Power Point presentation.

The Council discusses the phases. How many Town Hall meetings? There should have a meeting per county rather than a central location. The Council suggested giving 5 topics for Delawareans to respond to in the Town Hall meeting. Can we do a survey on the

2 Governors Energy Advisory Council Meeting Minutes of January 24, 2008 web? How will we advertise? Should we start this in August after The General Assembly? Andrea will make a list of 20 issues to choose and the top 5 issues will be for the workgroup.

V. PRESENTATION ON THE BROCKWAY REPORT: - Bert Scoglietti Bert handed out the Delaware’s Electricity Future: Re-Regulation Options and Impacts report, also known as “The Brockway Report”, and the Overview of Brockway Report Power Point presentation explanation.

VI. DELAWARE GREEN ENERGY PROGRAM UPDATE: - Scott Lynch Scott presented The Council with a PowerPoint presentation on the Green Energy Fund. The Council asked questions about the presentation.

VII. ADDITIONAL COMMENTS FROM THE COUNCIL No additional comments from The Council.

VII. NEW BUSINESS: No new business.

VIII. NEXT MEETING: February 28, 2008

IV. ADJOURNMENT: Today’s meeting adjourned at 11:40am.