§ 1014 — Public purpose programs and consumer education [For application of this section, see 85 Del. Laws, c. 83, § 2]

Delaware § 1014

• Jurisdiction: Delaware
• Title: 26
• Ch. 10: ELECTRIC UTILITY RESTRUCTURING

Text

(a) In separating the rates or prices for DP&L’s services under § 1005(a) of this title, the Commission shall reassign to the separate transmission and distribution rates of each rate class from the total base rates $0.000356 per kilowatt-hour to be deposited each month by DP&L into an environmental incentive fund effective on October 1, 1999. Such fund shall be known as the “Green Energy Fund” and all moneys deposited into the Green Energy Fund shall be transferred in their entirety on the July 1 of each year to the State Energy Office to fund environmental incentive programs for conservation and energy efficiency in the State. The State Energy Office shall submit to the General Assembly by May 30 of each year a written accounting of moneys received from the fund during the previous year and how those moneys were used or disbursed during that year.

(b) The Commission shall further reassign to the separate transmission and distribution rates of each rate class from the total base rates $0.000095 per kilowatt-hour to be deposited each month by DP&L into a Low-Income Pogram Fund effective on October 1, 1999. Such fund shall be administered by the Department of Health and Social Services, Division of State Service Centers and shall be used to fund low-income fuel assistance and weatherization programs within DP&L’s service territory.

(c) The Commission shall establish a working group by June 1, 1999, comprised of representatives of the Commission, electric utilities, electric suppliers, the Division of the Public Advocate, environmental community, consumers, a member of the House of Representatives appointed by the Speaker of the House, a member of the House of Representatives appointed by the Minority Leader of the House, a member of the Senate appointed by the President Pro Tempore of the Senate, a member of the Senate appointed by the Minority Leader of the Senate and other interested parties to design and implement a consumer education program, including “Green Power” options, to prepare the citizens of Delaware for retail competition. The Commission shall direct the payment of up to a total of $250,000 from DP&L and DEC (apportioned on the 1998 kw Delaware retail sales of each entity) for the purpose of providing customer education materials to citizens of Delaware in connection with retail competition.

(d) The Commission, municipal electric companies, and electric cooperatives during any period of exemption under § 223 of this title shall each promulgate rules and regulations that provide for net energy metering for customers who own and operate, lease and operate, or contract with a third party that owns and operates an electric generation facility that:

(1) Has a capacity that:

a. For residential customers of DP&L, DEC, and municipal electric companies, has a capacity of not more than 25 kW;

b. For farm customers as described in § 902(3) of Title 3 who are customers of DP&L, DEC, or municipal electric companies that receive distribution service under a residential tariff or service offering, does not exceed more than 150 kW. On a case by case basis the Delaware Department of Natural Resources and Environmental Control shall review a farm’s application for a system above 150 kW by comparing the output of the system to the energy requirements of the farm and may grant a waiver to increase the size of the system above the 150 kW limit. The Delaware Department of Natural Resources and Environmental Control shall promulgate rules and regulations for such waivers in consultation with any commission-regulated electric utilities. Such waivers for DEC or municipal electric company customers shall be approved by DEC or the municipal electric company serving said customer;

c. For nonresidential customers, is not more than 2 megawatts per DP&L meter, and 500 kW per DEC or municipal electric company meter. DEC and municipal electric companies are encouraged to provide for net-metering up to a capacity of not more than 2 megawatts for nonresidential customers.

(2) Uses as its primary source of fuel solar, wind, hydro, a fuel cell, or gas from the anaerobic digestion of organic material;

(3) Is located on the customer’s premises;

(4) Is interconnected and operated in parallel with an electric distribution company’s transmission and distribution facilities; and

(5) Is designed to produce no more than 110% of the host customer’s expected aggregate electrical consumption, calculated on the average of the 2 previous 12-month periods of actual electrical usage at the time of installation of energy generating equipment. For new building construction, electrical consumption will be estimated at 110% of the consumption of units of similar size and characteristics at the time of installation of energy generating equipment. Any utility may enter into a power supply agreement with a farm customer described in § 902(3) of Title 3; provided that nothing in this subsection or subsection (e) of this section shall prohibit electric distribution companies from entering into contracts with farm customers that allow or provide for the procurement, crediting, or carryover of Excess kWh Credits at the end of an annualized billing period.

(e) The rules and regulations promulgated for net energy metering by the Commission, municipal electric companies, and electric cooperatives during any period of exemption under § 223 of this title must consider the reliability, safety, and capacity of the electric distribution system and:

(1) a. Provide for customers to be credited in kilowatt-hours (kWh) for any excess production of their generating facility that exceeds the customer’s on-site consumption of kWh in a billing period (an “Excess kWh Credit”). Excess kWh Credits shall be credited to subsequent monthly billing periods to offset a customer’s consumption in those billing periods. Excess kWh Credits at the end of an annualized billing period shall carry over to subsequent annualized billing periods. For nonresidential customers that are not a farm customer described in § 902(3) of Title 3, the Commission, municipal electric companies, and electric cooperatives during any period of exemption under § 223 of this title may impose a limit on the amount of Excess kWh Credits that may be carried forward at the end of an annualized billing period. Commission-regulated electric utilities shall be permitted to recover implementation costs including the billing system information technology costs incurred because of the carry over of Excess kWh Credits to subsequent annualized billing periods.

b. Effective January 1, 2024, for commission-regulated utilities for existing and future net energy metering customers, both residential and nonresidential, the monthly Excess kWh Credit shall be valued at the sum of the volumetric (kWh) components of the supply service charges and distribution service charges, not including the charges for societal benefits programs, according to each participating customer account’s rate schedule. Any Excess kWh Credits shall not reduce any fixed monthly customer charges imposed by the electric distribution company. The customer-generator retains ownership of all renewable energy credits (RECs) associated with electric energy produced unless the customer has relinquished such ownership by contractual agreement with a third party or by other means. This paragraph (e)(1) does not apply to customers participating in a community-owned energy generating facility, as the provisions regarding community-owned energy generating facilities are addressed elsewhere in the Delaware Code. “Societal benefits program” means a program required by law in which a benefit to the public at large accrues as a result of its implementation. Societal benefits programs include:

1. Green Energy Fund under subsection (a) of this section.

2. Low-Income Program Fund under subsection (b) of this section.

3. Charges incurred by the utility in complying with the state mandated renewable energy portfolio standard under § 358(f)(1) of this title.

4. The charge imposed under § 364 of this title for qualified fuel cells.

5. Energy efficiency programs under § 8059(h)(1)e. of Title 29.

(2) Excess kWh Credits for supply service are the responsibility of the entity providing supply to the customer rather than solely the responsibility of the electric distribution company.

(3) In the event that a net-metering customer abandons the property where the energy generating equipment is located, the equipment may remain connected to the electric distribution system, unless the equipment presents a risk to the safety and reliability of the electric distribution system.

(4) Ensure that electric suppliers provide net-metered customers electric service at nondiscriminatory rates that are identical, with respect to rate structure and monthly charges, to the rates that a customer who is not net-metering would be charged. electric suppliers shall not charge a net-metering customer any stand-by fees or similar charges, with the exception that the Delaware Energy Office shall promulgate rules that allow DEC and municipal electric companies to request to assess nonresidential net-metering customers a fee or charge if the electric utility’s direct costs of interconnection and administration of net-metering for these customer classes outweigh the distribution system, environmental, and public policy benefits of allocating the costs among the electric supplier’s entire customer base.

(5) Require that all generating systems and grid-integrated electric vehicles used by eligible customers meet all applicable safety and performance standards established by the National Electrical Code, and those of the Institute of Electrical and Electronic Engineers, UL, or the Society of Automotive Engineers, to ensure that net metering customers meet applicable safety and performance standards and comply with the electric supplier’s interconnection tariffs and operating guidelines. An electric supplier’s interconnection rules must be developed by using as a guide the Interstate Renewable Energy Council’s Model Interconnection Rules and best practices identified by the U.S. Department of Energy. Municipal electric companies shall establish interconnection rules no later than July 24, 2008. An electric supplier may not require eligible net-metering customers who meet all applicable safety and performance standards to install excessive controls, perform or pay for unnecessary tests, or purchase excessive liability insurance.

(6) Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in 2 directions. To maintain system safety and reliability, an additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the net-metering customer, which consent may be waived by the customer. The additional metering shall be used only to provide the information necessary to accurately bill or credit the customer pursuant to paragraph (e)(1) of this section, or to collect system performance information. If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter. Nonresidential customers shall be responsible for paying the reasonable cost of any new, replacement, or modified meter or meters installed or caused to be installed for net-metering purposes. Residential customers shall not be responsible for paying more than $200 toward the reasonable cost of any new, replacement, or modified meter or meters installed or caused to be installed for net-metering purposes. Nonresidential customers and residential customers shall not own the meter or meters, which shall remain the property of the electric supplier.

(7) If the total generating capacity, measured in megawatts (MW) of alternating current (AC), of all customer-generation using net-metering systems served by an electric utility exceeds 8% of the capacity necessary to meet the electric utility’s average Delaware transmission peak demand for the preceding 3 years, the electric utility may elect not to provide net-metering services to any additional customer-generators.

(8) In instances where 1 customer has multiple meters under the same account or different accounts, regardless of the physical location and rate class, the customer may aggregate meters for the purpose of net energy metering regardless of which individual meter receives energy from the energy generating facility, provided that:

a. Electric suppliers, DEC, DP&L, and municipal electric companies shall only allow meter aggregation for customer accounts of which they provide electric supply service; and

b. The customer’s energy generating facility is designed to produce no more than 110% of the customer’s aggregate electrical consumption of the individual meters or accounts that the customer wishes to aggregate under this paragraph (e)(8) of this section, calculated on the average of the 2 previous 12-month periods of actual electrical usage at the time of installation of energy generating equipment. For new building construction, electrical consumption will be estimated at 110% of the consumption of units of similar size and characteristics at the time of installation of energy generating equipment; and

c. The customer’s energy generating facility shall not exceed a capacity as defined under paragraph (d)(1) of this section; and

d. At least 90 days before a customer commences construction of an energy generating facility or a customer desires to aggregate multiple meters, the customer shall file with the electric supplier, DP&L, DEC, or the appropriate municipal electric company the following information:

1. A list of individual meters the customer desires to aggregate, identified by name, address, and account number, and ranked according to the order in which the customer desires to apply credit;

2. A description of the energy generating facility, including the facility’s location, capacity, and fuel type or generating technology; and

3. A complete interconnection application to facilitate a transmission and distribution analysis, including an evaluation of potential reliability, safety and stability impacts and determination of whether infrastructure upgrades are necessary and appropriate allocation of applicable interconnection costs;

e. The customer may change its list of aggregated meters no more than once annually by providing 90 days’ written notice; and

f. Credit shall be applied first to the meter through which the energy generating facility supplies electricity, then through the remaining meters for the customer’s accounts according to the rank order as specified in accordance with paragraph (e)(8)d. of this section; and

g. Credit in kWh shall be valued according to each account’s rate schedule and the rules and regulations promulgated for net energy metering under paragraph (e)(1) of this section; and

h. An electric supplier, DP&L, DEC, or the appropriate municipal electric company may require that a customer’s aggregated meters be read on the same billing cycle; and

i. The rules and regulations promulgated for net energy metering under this section shall also apply to net energy metering aggregation.

(9) [Repealed.]

(f) Individual customers may aggregate their individual meters in conjunction with a community-owned energy generating facility provided that:

(1) The Commission promulgates rules and regulations that provide for customers participating in a community-owned energy generating facility to be credited for the customers’ subscribed percentage of generation valued at the sum of the volumetric (kWh) components of the distribution service charges and supply service charges for residential customers and the sum of the volumetric energy (kWh) components of the distribution service charges and supply service charges for nonresidential customers according to each participating customer account’s rate schedule. At the end of the annualized billing period, a customer may request a refund from the electric distribution company.

(2) A customer may not receive credit for more than 110% of the customer’s expected aggregate electrical consumption, calculated on the average of the 2 previous 12-month periods of actual electrical usage at the time of subscription with the community-owned energy generating facility. For new building construction, electrical consumption will be estimated at 110% of the consumption of units of similar size and characteristics. On an annual basis, an electric distribution company shall be permitted to audit individual customer’s subscribed amounts to ensure the associated usage does not exceed 110% of the customer’s annual usage. The community-owned energy generating facility shall provide updated individual customer’s subscribed percentage as required. In the event the community-owned energy generating facility does not provide the required update within 30 days after notification by the electric distribution company, the electric distribution company shall be permitted to set the customer’s percentage to zero. Customers of a community-owned energy generating facility shall only pay for credits received. A community-owned energy generating facility may update customer allocation percentages on a monthly basis.

(3) Any unsubscribed energy that constitutes 10% or less of the community-owned energy generating facility shall be compensated using the average annual locational marginal price of energy in the DPL Zone based on the prior calendar year. Any unsubscribed energy that is greater than 10% of the community-owned energy generating facility not allocated shall not be compensated by the electric distribution company.

(4) An electric distribution company shall use energy generated from a community-owned energy generating facility to offset purchases from wholesale electricity suppliers for standard offer service.

(5) Excess credits shall be credited to subsequent billing periods to offset the customers’ charges in those billing periods.

(6) The community-owned energy generating facility shall ensure that the net-metering credits from the community-owned energy generating facility are accurate. The amount of electricity generated each month available for allocation as subscribed or unsubscribed energy shall be determined by a revenue quality production meter installed and paid for by the owner of the community-owned energy generating facility. Further, the community-owned energy generating facility shall be responsible for any additional costs incurred by the electric distribution company, including billing-related costs associated with community-owned energy generating facility customers.

(7) The community-owned energy generating facility will retain ownership of all RECs and SRECs associated with the electric energy it produces unless it has relinquished such ownership by contractual agreement with a third party or its customers.

(8) The community-owned energy generating facility shall not have subscriptions larger than 200 kilowatts constituting more than 60% of its capacity. The community-owned energy generating facility host’s self-consumption is not included in this calculation.

(9) The electric distribution company shall only allow meter aggregation for customer accounts for which they provide electric distribution service.

(10) A community-owned energy generating facility shall not exceed a capacity of 4 megawatts and all costs associated with the interconnection are the responsibility of the community-owned energy generating facility.

(11) Community-owned energy generating facilities may include technologies defined under § 352(8)a.-h. of this title.

(12) A community-owned energy generating facility seeking to provide service to customers must apply for and obtain a certificate to operate from the Commission, and pay an application fee of $750. Community-owned energy generating facilities are not required to obtain a certificate of public convenience and necessity from the Commission. To obtain a certificate to operate, a community-owned energy generating facility must provide the following:

a. A completed interconnection study or signed interconnection agreement with the electric distribution company.

b. Proof of site control.

c. Evidence that it possesses the financial, operational, and managerial capacity to comply with all state and federal regulations.

(13) If a community-owned energy generating facility fails to comply with orders, rules, or regulations promulgated or issued by the Commission governing such a facility, or any other laws, rules, or regulations that apply to such a facility, the Commission may impose penalties, including monetary assessments, and may suspend or revoke the certificate to operate, and impose other sanctions permitted by law.

(14) Every 3 years, the community-owned energy generating facility must certify to the Public Service Commission in writing that it meets the low-income eligibility criteria provided in this chapter.

(15) Community-owned energy generating facilities are subject to the fees and charges in § 114 of this title. In addition, community-owned energy generating facilities are required to pay the annual gross revenue assessment in § 115 of this title, and the “gross operating revenue” shall equal the sum of the net-metering credits produced by the community-owned energy generating facility and the revenue derived from unsubscribed energy.

(16) Before a community-owned energy generating facility receives permission to operate pursuant to the interconnection process from the electric distribution company, a community-owned energy generating facility shall provide the electric distribution company with the following information:

a. A list of individual meters the community-owned energy generating facility desires to aggregate identified by name, address, and account number.

b. A description of the energy generating facility, including the facility’s host location, capacity, and fuel type or generating technology.

c. The subscribed percentage of generation attributed to each customer, which the electric distribution company shall true-up at the end of the annualized billing period.

d. Certification that the subscription level of each customer does not exceed 110% of that customer’s expected aggregate electrical consumption calculated on the average of the 2 previous 12-month periods of actual electrical usage at the time of subscription with the community-owned energy generating facility.

e. Before a community-owned energy generating facility receives permission to interconnect with an electric distribution company, the community-owned energy generating facility must certify to the electric distribution company and the Commission that participants in the community-owned energy generating facility include at least 15% low income customers whose gross annual income, by family size, is at or below 200% of the federal poverty guidelines, or 60% of the state median household income published by the United States Census Bureau, whichever is greater.

(17) A community-owned energy generating facility may change its list of aggregated meters no more than monthly by providing 30 days written notice to the electric distribution company.

(18) An electric distribution company may require that customers participating in a community-owned energy generating facility have their meters read on the same billing cycle.

(19) Neither customers nor owners of community-owned energy generating facilities shall be subject to regulation as either public utilities or an electric supplier, except as set forth in this section.

(20) Community-owned energy generating facilities shall be subject to regulation under the purview of the Commission, and the Commission will engage in rule-making in consultation with the Consumer Protection Unit of the Delaware Department of Justice. In addition to the promulgation of rules and regulations pursuant to this section relating to net energy metering, the Commission may promulgate rules and regulations with respect to community-owned energy generating facilities and this section to protect customers, including provisions related to standardized customer information billing, service terms and conditions, dispute procedures, and portability and transferability of contracts. Community-owned energy generating facilities shall not solicit customers by means of telemarketing where such telemarketing is prohibited by applicable laws and regulations.

(21) All community-owned energy generating facilities shall consent to the jurisdiction of the Delaware courts for acts or omissions arising from their activities in the State.

(22) Community-owned energy generating facilities must adhere to state and the Federal Energy Regulatory Commission rules.

(23) The Commission shall open a rule-making docket to promulgate the rules and regulations for community-owned energy generating facilities called for in this section by August 1, 2021, and the rules and regulations must be promulgated no later than March 11, 2022, unless the deadline is extended by law.

(24) A violation of any provision of this chapter related to community-owned energy generating facilities, and any rules or regulations promulgated pursuant to this section shall be deemed an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6.

(g) The Commission shall periodically review the impact of net-metering rules in this section and recommend changes or adjustments necessary for the economic health of utilities.

(h) A retail electric customer having on its premises 1 or more grid-integrated electric vehicles shall be credited in kilowatt-hours (kWh) for energy discharged to the grid from the vehicle’s battery at the same kWh rate that customer pays to charge the battery from the grid, as defined in paragraph (e)(1) of this section. Excess kWh credits shall be handled in the same manner as net metering as described in paragraph (e)(1) of this section. To qualify under this subsection, the grid-integrated electric vehicle must meet the requirements in paragraphs (d)(1)a., (d)(1)b. and (d)(4) of this section. Connection and metering of grid integrated vehicles shall be subject to the rules and regulations found in paragraphs (e)(4), (5), and (6) of this section.

(i) The Commission may adopt tariffs for regulated electric utilities that are not inconsistent with subsection (h) of this section. Such tariffs may include rate and credit structures that vary from those set forth in subsection (h) of this section, as long as alternative rate and credit structures are not inconsistent with the development of grid-integrated electric vehicles.

(j) Nothing in this section is intended in any way to limit eligibility for net energy metering services based upon direct ownership, joint ownership, or third-party ownership or financing agreement related to an electric generation facility, where net energy metering would otherwise be available.

(k) Disputes shall be resolved by the Commission or appropriate governing body.

(l) Rules, regulations and programs for paragraphs (e)(8) and (9) [repealed] of this section shall be promulgated by the Commission or the appropriate local regulatory authority not later than July 1, 2011.