Bill Text: DE SB263 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 26 Of The Delaware Code Relating To Public Utilities.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2012-06-19 - Amendment SA 1 - Introduced and Placed With the Bill in Senate [SB263 Detail]
Download: Delaware-2011-SB263-Draft.html
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SPONSOR: |
Sen. McDowell & Rep. D.E. Williams |
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Sens. Peterson, Henry, Venables, Ennis & Marshall, Reps. Heffernan, J. Johnson & D.P. Williams |
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DELAWARE STATE SENATE 146th GENERAL ASSEMBLY |
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SENATE BILL NO. 263 |
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AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES. |
Section 1.Amend §352, Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(25) "Solar Renewable Energy Credit" ("SREC") means a tradable instrument that is equal to 1 megawatt-hour of retail electricity sales in the State that is derived from solar photovoltaic energy resources connected to the distribution grid serving Delaware and that is used to track and verify compliance with the provisions of this subchapter.
Section 2.Amend §352, Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows and renumbering the existing (12)-(26) accordingly:
(12)Low-Income Solar Facility' (LISF) shall mean a solar facility providing electricity to one of the following entities
1. U.S. citizen or a lawfully admitted alien who has an income that is less than 300% of the Federal Poverty Level (FPL), who is a resident of the State of Delaware and who receives a financial benefit from the solar system.
2.Owner of a residential home whose Accepted Completed Solar System Interconnection Application was dated prior to December 1, 2010.
Section 3.Amend §354(a), Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
§354. Renewable energy portfolio standards, eligible energy resources and industrial exemption.
(a) The total
retail sales of each Retail Electricity Product delivered to Delaware end-use
customers by a retail electricity supplier or municipal electric company during
any given compliance year shall include a minimum percentage of electrical
energy sales with eligible energy resources, and solar
photovoltaics and LISF solar photovoltaics as follows:
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Compliance Year (beginning June 1st) |
Minimum Cumulative Percentage from Eligible Energy Resources* |
Minimum Cumulative Percentage from Solar Photovoltaics |
Minimum Cumulative Percentage from LISF |
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2010 |
5.00% |
0.18% |
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2011 |
7.00% |
0.20% |
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2012 |
8.50% |
0.60% |
0.15% |
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2013 |
10.00% |
0.80% |
0.35% |
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2014 |
11.50% |
1.00% |
0.55% |
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2015 |
13.00% |
1.25% |
0.75% |
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2016 |
14.50% |
1.50% |
1.00% |
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2017 |
16.00% |
1.75% |
1.20% |
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2018 |
17.50% |
2.00% |
1.40% |
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2019 |
19.00% |
2.25% |
1.60% |
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2020 |
20.00% |
2.50% |
1.80% |
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2021 |
21.00% |
2.75% |
2.00% |
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2022 |
22.00% |
3.00% |
2.25% |
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2023 |
23.00% |
3.25% |
2.50% |
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2024 |
24.00% |
3.50% |
2.50% |
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2025 |
25.00% |
3.50% |
2.50% |
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* Minimum Percentage from Eligible Energy Resources Includes the Minimum Percentage from Solar Photovoltaics and from LISF. |
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Section 4.Amend §358(f)(1), Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(f)(1) Recovery of
costs -- A retail electricity supplier or municipal electric company mayshall
recover, through a nonbypassable surcharge, actual dollar for dollar costs
incurred in complying with a state mandated renewable energy portfolio
standard, except that any compliance fee assessed pursuant to subsection (d) of
this section shall be recoverable only to the extent authorized by paragraph
(f)(2) of this section.
Section 5.Amend §358(e), Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(e) In lieu of
standard means of compliance with this statute, any retail electricity supplier
may pay into the Fund a Solar Alternative Compliance Payment of $400 for each
megawatt-hour deficiency between the credits available and used by a retail
electricity supplier in a given compliance year and the credits necessary for
such retail electricity supplier to meet the year's Renewable Energy Portfolio
Standard. A municipal electric company may pay the solar alternative compliance
payment into a fund established by its municipal members. In subsequent years,
the solar alternative compliance payments for any retail electricity supplier
or municipal electricity company shall increase as follows:
(1) If a retail
electricity supplier has paid a Solar Alternative Compliance Payment of $400
for each megawatt-hour in any previous year, then the solar alternative
compliance payment shall be $450 for each megawatt-hour.
(2) If a retail
electricity supplier has paid a Solar Alternative Compliance Payment of $450
for each megawatt-hour in any previous year, then the Solar Alternative
Compliance Payment shall be $500 for each megawatt-hour.
(3) The State
Energy Coordinator shall have the authority to review the Solar Alternative
Compliance Payment on an as needed or annual basis to determine reasonableness
compared to market-based SREC prices. Following an analysis conducted by the
Delaware Energy Office, the State Energy Coordinator shall also have the
authority to adjust the Solar Alternative Compliance Payment by 20% in order to
achieve reasonableness, but not higher than 20% of the competitive market cost
of an SREC, determined by the quarterly weighted average cost of meeting the
requirement through purchase of an SREC as analyzed by the Delaware Energy
Office.
In lieu of standard means of compliance with this statute, any retail electricity supplier may pay into the Fund a Solar Alternative Compliance Payment of $247 for each megawatt-hour deficiency between the credits available and used by a retail electricity supplier in a compliance year 2012 and the credits necessary for such retail electricity supplier to meet the year's Renewable Energy Portfolio Standard. A municipal electric company may pay the solar alternative compliance payment into a fund established by its municipal members. In subsequent years, the solar alternative compliance payments for any retail electricity supplier or municipal electricity company shall increase as follows:
(1) If a retail electricity supplier has paid a Solar Alternative Compliance Payment for each megawatt-hour in any previous year, then the solar alternative compliance payment shall be 5% higher for each megawatt-hour.
(2) The State Energy Coordinator shall have the authority to review the Solar Alternative Compliance Payment on an as needed or annual basis to determine reasonableness compared to market-based SREC prices. Following an analysis conducted by the Delaware Energy Office, the State Energy Coordinator shall also have the authority to adjust the Solar Alternative Compliance Payment by 5% in order to achieve reasonableness, but not higher than 5% of the competitive market cost of an SREC, determined by the quarterly weighted average cost of meeting the requirement through purchase of an SREC as analyzed by the Delaware Energy Office.
Section 6.Amend §358, Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(g) A SREC generated by a LISF shall be granted the designation LSREC. The generation, trading, and retirement of LSRECs shall be regulated in a manner consistent with SRECs. Failure to meet the Minimum cumulative percentage from LISF will result in an alternative compliance payment consistent with subset (e) of this section.
Section 7.Amend §360(d)(2)(g), Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
g. Ensuring that residential, commercial, and utility scale photovoltaic and solar thermal systems of various sizes are financially viable and cost-effective investments in Delaware by allocating specific quantities of SRECs to systems of each size via bi annual procurements.
Section 8.Amend §360(d)(2), Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(h) Reviewing proposed comparable programs of municipal electric companies and rural electric cooperatives for their compliance with this Act
Section 9.Amend §363, Title 26 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strike through as follows:
(k) a comparable program for a Municipal Electric Company or Rural Electrical Cooperative to elect exemption shall include ensuring that residential, commercial, and utility scale system photovoltaic systems of various sizes are financially viable and cost effective investments in Delaware, and include allocating specific quantities of SRECs to systems of each size.
SYNOPSIS
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This Act will i) Allow all Delawarean's, regardless of income levels, to participate in the benefits of the Delaware Renewable Portfolio Standards (RPS); ii) Maintain and grow the jobs created by the home-grown solar industry; iii) Correct a flaw in the current procurement process that precluded systems installed prior to December 1, 2010. iv) Require that a SREC qualifying for DE RPS is created from an installation located on the distribution system serving the citizens of Delaware. v) Accomplish the above at no cost to ratepayers by reducing potential compliance fees through lowering the Alternate Compliance Payment. |
Author: Sen. McDowell
