Harris McDowell’s Long History of Running “Green Energy” Scams
It is not hard to connect the dots when it comes to Harris McDowell’s serial energy malfeasance. The dots are so close together that they are practically touching.
[Re-Bumped up 10:59 pm – 26 comments so far and not a single one defending McDowell]
Dot Number 1: Energy Deregulation
In 1999 the Delaware General Assembly voted to allow Delmarva Power to make as much money as it wanted to without regard to the fact that it was a public utility and not a regular private corporation. Connecticut had passed similar “deregulation” scheme (see also: abject failure) the prior year with the help of an eager lawyer named Randall Speck.
Eight House members stood to make personal financial windfalls if the deal went through. Naturally, they could not vote on the project though, since voting to increase their personal wealth so brazenly would not only be unethical, but it would have run afoul of the state’s conflict of interest regulations. They abstained.
Luckily, H.B. 10 was passed several weeks later, which stated that “conflict of interest” is soooooo 1980’s. The barn door was opened and the horses sauntered out voting for deregulation and a financial windfall for certain well connected persons that spring.
The conflict of interest issue and the brazen money grab by eight House members passed quietly, with little notice.
Even John Flaherty admitted later that he was not fully aware of the change in the conflict of interest regs. “…It sounds like they are deregulating ethics,” he said after the fact.
After the deregulation passed the house something interesting happened. Senator Harris McDowell held the deregulation bill in the committee for weeks. Not because it was crap, but because he wanted to the bill amended to include $1.5 million for a state-controlled “green” energy fund called the Sustainable Energy Utility (SEU) which would be used to pay for incentive programs encouraging conservation and energy efficiency. That sounds noble right? Hold that thought.
Harris McDowell’s just happened to run an “green energy” consulting business called the Delaware Alternative Power Corp. which appeared on his annual financial disclosure report through 2001.
Dot Number 2: Killing Off Shore Wind
Shockingly, deregulation didn’t work out so well for people who were not Delmarva Power shareholders. The slogan, “A 59% Rate Increase!” was not exactly used to promote the scheme back in 1999 so that increase came as kind of a surprise in 2005. In fact, it was such a surprise that rate payers were going to have to pay 59% more at the same time that Pepco’s third quarter profits reached $170 million and the company’s stock value increased by $500 million (allowing the company to increase its dividend payments to stockholders by 4 percent) that some people were alarmed.
So alarmed that the idea of re-regulating Delmarva was floated. To stave off that negative outcome for Delmarva, worried legislators put on their thinking caps and came up with HB 6 (the Electric Utility Retail Customer Supply Act of 2006). HB 6 established a process for procuring a new energy source based in Delaware and the RFP (Request for Proposals) for the project was put together by experts in the field. Namely, Delmarva Power.
You read that right. Delmarva Power wrote the RFP that the Blue Water Wind and others responded to. You can imagine the high-fives being traded around the offices of Pepco holdings when the RFP came out. Written by Delmarva Power, it was a classic, “heads we win, tales you lose” situation which closed the door on re-regulation while opening the door on a new Conectiv Energy power plant in Delaware. Except, some interlopers spoiled the party.
Blue Water Wind submitted a proposal that turned into a huge headache for Delmarva Power because it was good. The public fell in love with it, the unions loved it and the PSC liked it with some small modifications. It met all the RFP requirements and seemed like a slam-dunk. Only it wasn’t a slam-dunk for Pepco Holdings Inc, which makes more money when one subsidiary (Conectiv) sells electricity to another subsidiary (Delmarva Power). They didn’t want these newcomers horning in on the gravy train AND perhaps more importantly, a successful wind park could undermine their whole “If it doesn’t burn, it doesn’t earn.” business model – so they called Harris McDowell who sprang into action.
McDowell’s game plan would be to not only kill this specific wind project – but kill the very idea of off shore wind power. So While Delmarva Power pretended to negotiate a contract with Blue Water Wind, they prepared a lawsuit. To buy some time and perform some “discovery” for that pending lawsuit, McDowell called in his old deregulation buddy Randall Speck to run his the now famous “hearings.”
At this point maybe McDowell figured “In for a penny, in for a pound” or maybe malfeasance is like an Atlantic City Casino buffet to McDowell which he cannot get enough of, either way then went “whole hog” and drafted a bill:SB228 to remove any accountability and oversight from the SEU.
Remember the SEU? That little $1.5 million dollar fund set up to help ordinary non-Charlie Copeland type people get solar panels? You may be thinking, “So what if the SEU becomes an independent committee that answers to nobody? What’s a measly million bucks? The state blows that on Blue Hen themed novelites each year.”
Well…that little SEU could soon control in excess $100 million by 2014 based on proceeds a surcharge on green house gas emissions.
And who is the chair of the SEU? None other than Senator Harris B. McDowell III.
And who leaked a draft report to create negative PR around the wind park project as though it was the General Assembly’s final word on wind power? None other than Senator Harris B. McDowell III.
And who called Randall Speck to grill the PSC and develop some pretext for a Delmarva Power lawsuit? None other than Senator Harris B. McDowell III.
And who blocked de-regulation until he got his slice of the “green energy” cake? None other than Senator Harris B. McDowell III.
I don’t know. On the other hand, I guess it could all be a big coincidence. McDowell is probably a decent guy. I’m sure there are really good explanations for all this. I mean, nobody could be this brazenly corrupt for this long and get away with it….
…right?
2 dots in a row equal a straight line anytime! and that line points to McDowell
One side note I forgot to mention. Delmarva Power’s 59% rate increase was based on their claim that the fossil fuels they used to create electricity were getting more expensive everyday.
Delmarva’s current claim that Blue Water Wind’s plan is too expensive is based on the company’s claim that fossil fuels they used to create electricity are getting cheaper everyday.
Wow, great blogging Jason! The walls are closing in on McDowell and Delmarva.
And certainly the only fluctuation in price for fossil fuels that hits your bill is the fluctuation up.
This is great blogging, Jason. Would be nice if the NJ would pick up the threads and do one of their blockbuster Investigative Stories.
McDowell needs a primary opponent when his time comes up. Seriously.
Thanks. Three votes in the Senate are all that is propping up McDowell’s house of cards.
Jason, you really need to bump this post up once or twice today – don’t be humble. It is getting buried due to the velocity of the blog.
*blush*
Keep bumping it, Jason. It’s important.
A much better angle for discussion. Senate dems, Minner/Carney adminstration, Delmarva Power, long time alliances. Is this really that hard to figure out?
Not Delmarva, but Delarvae. It’s not for the stage in life, but for the creepy, destructive things they are.
“Del-Larvae”. Love it. Brings to mind squirming, pale, fleshy bugs feeding on Delaware citizens, and McDowell in turn putting huge spoon-fulls of the grubs into his mouth.
Dis..great visiual!
Perhaps you have forgotten, or never really knew, that Wilm City Councilman Charles Potter, Jr. challenged McDowell two years ago. The councilman is up for re-election this year but in two more years he intends to challenge McDowell again.
I hope all of you will put this on your respective calenders and come out for Potter in 2010. You know put your money, and your time, where your mouths are.
Campaigner: great campaign strategy. Claim we’re losers so we feel guilty about giving to your candidate. Lemme’ know how that works for ya’.
You got it, Dis (#11)!
I was not as informed about McDowell then as I am now.
I can garuntee that I’ll be working hard to help McDowell lose his next election no matter who he is running against.
Having said that it is nice to hear that Potter is getting his campaign in order this far out.
McDowell has been a sore on the ass of every energy program we have ever heard. Remember when he was supporting “incineration” for Delaware! Cherry Island is another problem for city residents, yet Harris has never come out against Cherry Island and its explosion.
Harris has been a deal maker…making deals with the “devils” to keep getting elected. This guy as more baggage than the Phila airport. Its time all his dirty tricks were exposed. Plus the fact that someone should contact the Board of Elections and the AG’s office and find out that he does not live at his home on Baynard blvd, but lives in Middletown, as has for years. This guy should be frog marched out of the legislature, and I think he knows the writing is on the wall…which is why we hear that he is setting up “yet another energy company”, to cash in on, while he makes sure the citizens are fleeced to death by big ole bad DPL.
“Minner/Carney adminstration”
Does that mean if RAM had lost in 2004, Carney would have lost also because they are on the same ticket?
Does that mean it’s not possible for a Gov of one Party and a Lt. Gov of another party can’t be elected in the same year?
Does that mean Carney is paid from the Exec branch like RAM and not the Leg branch?
Did I hear you answer “No, no, no?” Then, pray tell, what are you talking about?
I hate to keep posting this but… Liz, while I am NOT happy with McDowell he is my neighbor. I see him, his children and his wife – regularly – at their Baynard Blvd. house. Isn’t there enough to complain about without this Middletown nonsense.
Tyler Nixon for Senate! A much better deal for Delaware.
Of course he is not endorsed by the PDD but maybe they can see their way to voting him into office if he will run.
That was a jab, but for the record, you are right. The PDD would not endorse Tyler Nixon, nor should it. Nor should anybody be confused by that.
How people should vote in a McDowell/Nixon match-up district is another matter.
No, not a jab at PDD. Yes, at Charles Potter. UGH.
I sure hope that Strine’s leaving his post and a few other changes will bring Tyler back to his rightful place as a GOP candidate. It would be a great day if he were to take a seat in the Senate.
I understand that Potter is going to seek the Senate against McDowell. I hope he does, we need his honesty, and standing with the people are issues other electeds wouldnt consider. Like sponsoring a Resolution against the Patriot Act. That was brave and heavily supported by the citizens. He is 100% behind wind, and cleaning up brownfields, and Cherry Island.
His family is very involved in the community and his constituents get results. This morning at his Wednesday morning meeting 30 people came. Thats a big plus in my book. I have known Charles for years and have found him to be honorable, a man of his word. I hope Tyler would consider running for Mayor! Thats where his services are absolutely needed, and where he has proved his work on behalf of all the residents of the city.
Pandora: Interesting you say that! My son used to live a few doors down, and he never saw him there. Mail falling out the box, papers all over the floor!
Its not Middletown nonsense, if the elected actually lives outside his district! How is that representing your constituents?
Dude, well done.
May just turn out to be the most influential post of the year.
Thanks, but geez. I just re-read it and it is rife with typos.
I’ll clean it up and post an update tomorrow.