The Delaware Public Service Commission (PSC) has authorized regulation aimed at easing concerns about electric deregulation.
The PSC has been encouraging more participation by consumers in choosing retail suppliers.
The new regulations will be published in the Delaware Register in December and will be available for public comment for 15 days following publication.
PSC spokesperson Heather Contant said the regulations were not the result of problems with suppliers.
“The main driver behind most of the changes was strengthening customer protections and enhancing choice in the state, mandated by the legislature, and of course the suppliers wanted reform in the rules that would facilitate suppliers/brokers coming into this jurisdiction,” Contant stated.
Some of the changes include the following:
- New supplier applications will require both a Certificate of Good Standing and a Delaware Business License.
- Contracts with variable rates will be limited to monthly price changes.
- Introductory price offerings will be limited to three (3) months and clearly stated in the contract and contract summary.
- Having financial guarantees submitted by a Parent Company of an applicant have been eliminated as a security option.
- Broker bonding requirements (which we do not currently have) to ensure agents work according to state regulations will be evaluated on a case by case basis.
- Products that encourage renewable energy development/generation and any environmental benefits of such generation that cannot be delivered to PJM will require a Commission waiver.
- Customers will be able to switch suppliers in three (3) business days
- Suppliers can disclose a customer’s billing, payment, and credit information for the purpose of facilitating billing, bill collection and credit reporting.
- Customers will have three (3) business days to rescind a contractual supply agreement.
- Customers wishing to withhold their Delmarva Power account information from suppliers will have to renew their opt-out every three years.
While Delmarva Power still provides a default electric supply service, the Delaware Legislature made the provision for customers to choose among certified electric suppliers when it passed the Electric Utility Retail Customer Supply Act of 2006.
Since that time about 10 percent of residential customers and about 50 percent of commercial and industrial customers have taken advantage of the opportunity to purchase competitive supply.
For a typical Delmarva Power residential bill the supply charges make up approximately 65 percent of the total bill. “It’s important for customers to have competitive electric supply options and we need to make sure the rules and regulations are consistent and helpful in promoting customer choice in Delaware,” stated PSC Chairman Dallas Winslow, “Our revised regulations should help encourage customers to consider shopping for electric supply and potentially save money on their electric bills.”
Delmarva provides electricity on a pass-through. Delmarva contracts for electricity at various times to smooth out price spikes.
The PSC contracted with national supplier Direct Energy to jumpstart electric choice. Direct offers fixed rates for as long as two years.
Electricity prices have been trending downward. However, Delmarva has been filing for increases for the cost of supplying power as costs on that part of the bill go up.
To view the entire list of proposed changes, go to http://regulations.delaware.gov/services/current_issue.shtml.
