"We know that the onshore wind resource is really pretty poor, we know that the offshore wind resource is really much better," said Phil Cherry, energy program administrator for the state Department of Natural Resources and Environmental Control.
Delmarva's 59 percent rate increase last year spurred action by the state to prevent further increases.
"It's very appealing from an environmental point of view," Cherry said. "The problem is could you afford to build it in Delaware, and if you could afford it, would the public be accepting of these things off the shore of Delaware?"
According to legislation Delmarva must get 400 megawatts from instate suppliers. Three energy companies, NRG, Conectiv, and BluewaterWind, entered bids for a long-term contract with Delmarva Power.
NRG, a New Jersey company, proposed building a coal gasification plant, Conectiv Energy in Delaware proposed a 300-watt power plant or a 180-watt plant in the state, and the New Jersey based BluewaterWind proposed installing offshore wind farms in the Atlantic Ocean off the Delaware coast or in the Delaware Bay.
"We'll hope that we are one of the bidders selected for more detailed analysis," said Jim Lanard, Bluewater spokesman.