Bill Text: DE SB190 | 2017-2018 | 149th General Assembly | Draft
Bill Title: An Act To Amend Title 26 Of The Delaware Code Relating To Public Utility Rates.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-05-02 - Reported Out of Committee (Environmental, Natural Resources & Energy) in Senate with 3 On Its Merits [SB190 Detail]
Download: Delaware-2017-SB190-Draft.html
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SPONSOR: |
Sen. McDowell & Rep. Paradee |
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Rep. Heffernan |
DELAWARE STATE SENATE
149th GENERAL ASSEMBLY
SENATE BILL NO. 190
AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Title 26, Chapter 1 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 303 Unjust or unreasonable rates and preferences; change in fuel adjustment rate; economic development credit for qualifying corporations.
(a) No public utility shall make, impose or exact any unjust or unreasonable or unduly preferential or unjustly discriminatory individual or joint rate for any product or service supplied or rendered by it within the State, or adopt, maintain or enforce any regulation, practice or measurement which is unjust, unreasonable, unduly preferential or unjustly discriminatory or otherwise in violation of law, or make, or give, directly or indirectly, any undue or unreasonable preference or advantage to any person or corporation or to any particular description of traffic, in any respect whatsoever.
(b) The Commission shall require all utilities operating within its jurisdiction to produce evidence at a public hearing of the need for a change in the fuel adjustment as a part of the rate-making procedure. Notwithstanding any other provisions of this chapter, such fuel adjustment may include a separate component to adjust for or correct for any difference between actual allowable fuel costs incurred by the utility and fuel costs recovered through base rates and the fuel adjustment. Notice of such hearing shall be advertised in at least 1 newspaper in each of the 3 counties. As in other applications before the Commission, the burden of proof that the fuel adjustment change is required shall be upon the utility. No change in the fuel adjustment shall be authorized by the Commission except by affirmative vote of the majority of all members appointed to the Commission. The Commission shall consider the evidence for and against the proposed change as it would all evidence in any other ratemaking procedure. Consistent with the introduction of customer choice in the supply of electricity pursuant to Chapter 10 of this title, and subject to subsection (c) of this section below, this section shall have no application to rates in effect on and after October 1, 1999, for Delmarva Power & Light Company and April 1, 2000, for Delaware Electric Cooperative.
(c) Notwithstanding subsection (b) of this section, the Commission shall determine the actual overrecovered or underrecovered deferred fuel balance for each electric distribution company as of September 30, 1999, for Delmarva Power & Light Company and March 31, 2000, for Delaware Electric Cooperative. Such overrecovery or underrecovery shall be either returned to or collected from that electric distribution company's retail electric customers by a mechanism that is designed to provide a full credit or charge of the actual deferred fuel balance and that the Commission shall adopt and order to be effective no later than 90 days after such dates. The Commission shall adopt either a single bill credit or charge mechanism or an alternative per kilowatt-hour credit or charge mechanism to be in effect for up to a period of 12 months, depending upon the relative size of the actual amount to be credited or charged to retail electric customers. No further adjustments of such amounts shall be required.
(d)(1) The Commission shall authorize a public utility to establish an individual or joint rate for any product supplied or service rendered within the State for the purposes of ensuring the State's current and future economic well-being and growth where prior to authorizing such individual or joint rate the Commission finds:
a. That such rate is in the public interest;
b. That such rate prevents the loss of customers, encourages customers to expand present facilities and operations in Delaware and/or attracts new customers where necessary or appropriate to promote economic development in Delaware. This finding shall include, but is not limited to, a determination that the new or existing customer or the growth in an existing customer represents at least 25 jobs and/or at least $2 million in capital expenditures;
c. That such rate shall provide recovery of at least the incremental cost (including capital cost) of providing the relevant utility services;
d. If, how, and to what extent any discount being authorized below a relevant standard tariff rate shall be recovered; and
e. The period of time during which such rate shall remain in effect, normally up to 5 years.
(2) In addition to the above specific findings, the Commission shall also consider, among other things, the following items:
a. The utility's load and capacity situation;
b. The portion that the relevant utility service makes up of the customer's total operating expenses;
c. Viable economic alternatives to the utility service available to the customer;
d. The customer's ability to relocate, if relevant;
e. Reasonable efforts that the customer has made to secure government grants and/or other concessions; and
f. The effect, if any, on competitors located in Delaware of the customer or customers to which such rate may apply.
(e) The Commission may authorize a public utility to establish an individual or joint rate for any product supplied or service rendered within the State for the purpose of ensuring basic utility service for the State’s low-income residential customers, qualified by participation in the Low Income Home Energy Assistance or other equivalent program, where prior to authorizing such individual or joint rate, the Commission finds:
a. That such rate is in the public interest;
b. That such rate shall provide recovery of at least the incremental cost (including capital cost) of providing the related utility services;
c. That such rate provides no more than a 25% discount from an average customer class usage; and
d. That such discount is recoverable from customers in the same corresponding standard tariff rate class.
SYNOPSIS
This addition to Section 303 provides the Commission with the flexibility to consider and approve a low income residential utility rate or discount for qualified low income customers (those approved to participate in the Low Income Home Energy Assistance Program), provided that such rate may not provide a discount over 25% of the average customer class usage. This permits those customers to receive utility distribution services at a lower cost. In the case of Delmarva Power the discount is estimated to be no more than $10 -15 per month.
Author: Senator McDowell
