26 Del. Admin. Code — Public Utilities

1000 General Regulations

1002 Minimum Filing Requirements for All Regulated Companies Subject to the Jurisdiction of the Public Service Commission

26 Del. Admin. Code § 1002 Minimum Filing Requirements for All Regulated Companies Subject to the Jurisdiction of the Public Service Commission

General Information

Purpose of Minimum Filing Requirements

The Commission believes that the adoption of Minimum Filing Requirements for all utilities is in the public interest. The primary purpose of prescribing Minimum Filing Requirements is to expedite action on utility applications for rate relief by clarifying the preliminary information necessary to investigate the applications. Action will be expedited if most of the basic supporting information is furnished at the time of the filing of an application rather than being supplied in response to interrogatories or otherwise brought out on a piecemeal basis in time-consuming technical hearings. Furthermore, the Commission believes it is desirable to standardize, to the greatest extent possible, the format for the presentation of financial and operating data to the Commission for ease of understanding and comprehension by all parties involved.

Compliance With Minimum Filing Requirements

The Commission intends that the required information be furnished in accordance with the format and instructions furnished herein. If exceptions are requested or proposed, they should be fully explained and justified. Exceptions may be granted if good cause is shown by the utility. The Commission Staff will review all filings for compliance with the format and instructions furnished herein and notify the utility within 15 calendar days after the date of filing of any defects in compliance. The utility after such notification by the Commission Staff will then have 15 calendar days to correct these defects. The filing date for the utility's application will be the date filed when the Staff confirms that all identified deficiencies have been remedied and the proposed rates have not changed as a result of the utility's correction of the identified deficiencies. If the utility fails to correct its deficiencies in the 15 calendar day period, Staff will notify the utility that the filing date of the application will be the date that all deficiencies are remedied.

If the utility files a supplemental application seeking approval of rates that are different from the rates proposed in the original application, the filing date will be the date of filing the supplemental application. Quarterly financial updates to actuals and revised rates included in rebuttal testimony will not trigger a new filing date.

General Rate Increase Defined

A general rate increase is generally defined as an application by a regulated utility for an increase in rates which meets 1 or more of the following guidelines:

Any increase in base rates for the basic service rendered (other than cost adjustment clauses - Part C);
Any rate change which would increase jurisdictional operating revenues by more than 1%; and
Any tariff change which would impact more than 1% of the existing customers but may have no overall revenue effect.

The following generally would not meet the criteria set forth above:

A tariff filing reflecting a change in text without a change in rate;
A tariff filing to establish a rate for a new service;
A tariff filing to change or increase a single non-recurring charge; and
Any changes in rates for non-jurisdictional services.

Following is a brief description of the various sections of the Minimum Filing Requirements:

Part A - Rate Increase Applications - Major Utilities

Part A applies to utilities or divisions thereof with annual gross intra-State revenues of $1 million or more (at time of filing). A utility with less than $1 million of annual intra-State revenues, but whose intra-State revenues would exceed $1 million if the proposed rates were to become effective, is subject to Part A of these regulations.

Part B - Rate Increase Applications - Small Utilities

Utilities with less than $1 million of annual gross intra-State revenues are subject to Part B.

Part C - Cost Adjustment Clauses - All Utilities

This section has never been promulgated.

Part D - Issuance of Securities - All Utilities

All utilities which are required to obtain Commission approval for the issuance of securities, such as common stock, preferred stock, or long-term debt, must comply with the requirements of Part D at the time application is made for issuance of securities.

Part E - Quarterly Reporting Requirements - Major Utilities

All major utilities, except telecommunications and cable, subject to the jurisdiction of the Commission (i.e., those with annual gross intra-State revenues of $1 million or more) must file quarterly per books financial information including balance sheet, rate base statement, income statement, and statement of revenues by detailed Uniform System of Accounts. Such utilities should file the required financial data relative to the twelve months ended each calendar quarter not later than 60 calendar days following the reporting quarter. If the utility needs to request an extension, a letter should be sent to the Executive Director explaining the reason for such extension. All quarterly report filings shall be made via e-filing unless the utility obtains prior written permission from the Executive Director or Deputy Director.

Part F - Annual Reporting Requirements - Small Utilities

All small utilities subject to the jurisdiction of the Commission must file annually in accordance with the applicable section of Part F. Such utilities are required to file the required financial data relative to each calendar year not later than March 31 of the year following the reporting year.

Part G - Expedited Rate Change for Purchased Water and Electricity Costs by Class A Water Companies

Not in Effect.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-1.0 Instructions

1.1 Prefiling Announcement. In order for the Commission to schedule its future workload in an efficient manner, every public utility shall file with the Commission a Notice of Intent to file a general rate increase application not less than 60 calendar days prior to filing its application or notice of increase. This notice must include, in addition to the statement of intent to file, the dates of proposed test year and test period. If a regulated utility cancels, changes or delays a proposed general rate increase application previously reported to the Commission, the utility must promptly file an amended report reflecting such change of plans.

1.2 Application Requirement. The utility must provide 5 hard copies of the application for rate relief and the accompanying prepared testimony and supporting exhibits and workpapers to the Commission within 7 calendar days after filing its electronic filing.

1.3 Test Year and Test Periods

1.3.1 Test Year Defined. The test year is the actual historical period of time for which financial and operating data will be required. The test year data must include the actual "Per Books" results of operation for a 12-month period at the end of a reporting quarter. In addition, the 12-month period must end no later than 7 months prior to the filing of the application, but no sooner than 1 month after the final closing of the test year (post reversal of accrual entries), so that actual expenditures are reflected in the books of account. For example, if the actual results of operations for the 12 months ending March 30, 200x, are used for the purposes of the test year, the application must be filed no sooner than April 30, 200x, but no later than October 31, 200x.

1.3.2 Test Period Defined. The test period consists of 12 consecutive months ending at the end of a reporting quarter utilized by the utility to support its request for relief. The test period may be the same as the test year or may include some of the months included in the test year and some months projected, such as 6 months "actual" and 6 months "projected", but may not include more than 9 months "projected".

1.3.3 Updating Projected Test Periods. If the proposed test period is other than the test year (historic period), each quarter of projected utility data as filed shall be updated to actual utility data and provided to Staff and all parties within 60 days after the close of the quarter, unless a later date for submitting this additional data is otherwise ordered by the Hearing Examiner.

1.3.4 Modifications to Test Period Data. Any modifications in test period data occasioned by reasonably known and measurable changes in current or future rate base items, expenses (i.e., labor costs, tax expense, insurance, etc.) or revenues must be offered in evidence by the utility at any time prior to or with its filing of rebuttal evidence, provided, however, that if any party objects to the proffered modifications within 10 calendar days, such objections shall be promptly presented to the Commission, the Presiding Officer or Hearing Examiner for a decision on due consideration of the parties' respective positions.

1.3.5 Matching of Average Year or Year End Test Period. There must be a consistent timing match between rate base items, expenses, and revenues. For example, if a utility proposes an average year rate base, all assets and liabilities (based on average year customers and usages) shall be expressed on an average year basis. If a utility proposes an end of year rate base, all assets, liabilities, expenses and revenues (based on end of year customers and usages) shall be expressed on an end of year basis.

1.4 Testimony and Exhibits.

1.4.1 Prepared direct testimony supporting exhibits, schedules, and all workpapers supporting the application must be filed coincident with the filing of the application for rate relief. This filing requirement shall not prohibit the utility from subsequently submitting further testimony and exhibits in a timely fashion as necessary or proper to address issues raised during investigation of the application however, no utility shall be permitted to raise an issue that it could have included and was not beyond the utility's control in its application and supporting testimony and exhibits.

1.4.2 All data, schedules, and exhibits filed pursuant to these Minimum Filing Requirements shall be indexed and cross-referenced to the particular section of the Minimum Filing Requirements.

1.4.3 All workpapers shall be cross-referenced to the schedules to which they pertain.

1.4.4 If data or other information required by these Minimum Filing Requirements has been previously filed with the Commission it may be incorporated by reference; however, the utility must provide the date of the filing (if known), docket or report number (if applicable), or a valid website address from which the data or information may be retrieved.

1.4.5 The schedules shown in these Minimum Filing Requirements are for illustrative purposes and may be modified to fit the individual utility, if the utility provides the data required. The burden of proof remains by Statute on the utility; therefore, if a utility believes that additional information is necessary to support its case or is proposing a position which requires departure from the basic schedules, the utility must supplement these Minimum Filing Requirements in sufficient detail to support its position.

1.4.6 All test year account data, test period account data, and account data offered for any other time period must be presented in a format consistent with the Uniform System of Accounts unless otherwise ordered by the Commission.

1.4.7 All schedules and workpapers shall be provided in a spreadsheet format that can be imported in Excel or spreadsheet programs that Staff or the DPA is using. Schedules and workpapers in Excel or other spreadsheet format shall be filed in executable native format with all formulas and links intact. If links cannot be provided, proof of data must be provided.

1.4.8 All schedules and workpapers shall be provided in computer application format and shall be labeled so that the name of the utility witness proffering them can be determined. By proffering a schedule, the witness testifies to the accuracy of the data contained in that schedule.

1.4.9 Coincident with the filing of the application for rate relief, utilities that are regulated by the Federal Energy Regulatory Commission ("FERC") shall provide in spreadsheet format (i.e., Microsoft Excel) with formulas intact, a side-by-side comparison by FERC account to their FERC Form No, 1 or 2 for the 12-month historic year and all additional months of data beyond the historic test year that are included in the test period. Utilities shall provide the underlying support, for any variances.

1.4.10 Coincident with the filing of the application for rate relief, utilities that are regulated by the FERC shall provide in spreadsheet format (i.e., Microsoft Excel) with formulas intact, a side-by-side comparison by FERC account, to the FERC budgets for any months representing forecasted data. Utilities shall provide the underlying support, for any variances.

1.4.11 If a utility claims that any data, or information, required to be provided pursuant to these Minimum Filing Requirements is a trade secret, is proprietary information, or is confidential, the utility must specifically identify such data or information. A utility shall not apply a blanket label of confidentiality to entire pages of documents in which only portions of the material contained therein is confidential, but rather shall redact only the material on each page that it claims to be confidential. Challenges to a utility's claim that data or information is a trade secret, is proprietary, or is confidential shall be made pursuant to 26 DE Admin. Code 1001, subsection 1.11.

1.5 Penalty for Non-Compliance

1.5.1 The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within 15 calendar days after the date of filing, specifically identify any noncompliance with such format and instructions, and immediately request the Commission's Secretary to promptly notify the utility of the alleged defects in compliance. Following such notification by the Commission's Secretary, if the utility 15 days corrects the alleged defects; within 15 calendar days, the filing date shall be the date the utility first submitted the application to the commission for the purposes contemplated under the Public Utilities Act. In the event the alleged defects are not corrected within 15 calendar days, Staff may move the Commission to reject the utility's application for non-compliance with these Minimum Filing Requirements.

1.5.2 A utility may submit an application in draft form for Staff's informal review and approval without prejudice, such informal review and approval not to be unreasonably withheld by Staff.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-2.0 General Information

2.1 Description of Utility - If Presently Not On File With Commission

2.1.1 Provide a corporate history including dates of incorporation, subsequent acquisitions and mergers.

2.1.2 Describe completely all relationships between the applicant utility and its parent, subsidiaries, and affiliates. Furnish a chart or charts depicting the inter-company relationships.

2.1.3 Provide a current system territory map indicating all cities and counties and other government subdivisions to which the utility provides service. If the utility is proposing to expand its service territory, provide a service territory map showing the areas of proposed expansion.

2.1.4 Provide an explanation of the major factors giving rise to the decision to seek a rate adjustment including an estimate of the dollars associated with each such major factor such as "Wage Increase $50,000" or "Increase in Chemical Expense $100,000". A detailed reconciliation of each and every item is not required to comply with this subsection, just the principal items and an estimate of the dollar impact, to the extent possible.

2.1.5 Identify and explain each element of the application which represents a departure from prior decisions of the Commission as found on the Commission's website and its e-filing system and the revenue requirement associated with that departure. This requirement includes proposed accounting changes or accounting changes that have occurred since the last rate Order. The utility shall provide a copy of or link to the Order(s) from which it proposes to depart.

2.2 Water. Provide a description of all major utility property, including an explanation of the system's operations and all plans for any major future expansions or modifications of facilities in the next 3 years. Provide a confidential system map showing pumping stations, purification, and/or filter plants, reservoirs, wells, springs, booster stations, standpipes, distribution mains and transmission mains. Provide a description of the present and projected water supply.

2.3 Amount and Percent of Increases. Provide a schedule showing:

2.3.1 Current annualized revenues;

2.3.2 The dollar amount of the increase by customer class and rate schedule; and

2.3.3 The percent increase over present rate revenues in the same categories.

2.4 Previous Base Rate Cases. For the utility's 3 most recent rate cases, the utility shall provide a schedule showing:

2.4.1 The docket number of each case; and

2.4.2 The PSC Order number in which the Commission granted rate relief; and

2.4.3 The compliance filings for each case after rate relief was awarded.

2.5 Negotiated or Discounted Rates. Provide a schedule identifying each negotiated or discount rate contract that the utility has. (The counterparty name may be redacted for this purpose.) The schedule should include for each contract:

2.5.1 The current annualized revenues;

2.5.2 The dollar amount of the increase; and

2.5.3 The percent increase over present revenues.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-3.0 Financial Results of Operations

3.1 Financial Summary

3.1.1 An overall financial summary must be furnished on Schedule No. 1. The "rate base" calculation for the purposes of the test year should reflect book figures. To the extent additional "calculated" amounts are referenced, e.g., Cash Working Capital, these amounts should be consistent with the methodology employed for the test period rate base calculation.

3.1.2 Jurisdictional versus Total Utility Results. In the event the total company results are different from the results applicable to the Delaware jurisdiction, then 2 schedules shall be submitted and designated as schedule 1A, covering the entire company, and Schedule 1B, covering the Delaware jurisdictional results.

3.2 Supporting Documents. The following documents must be filed with the application if presently not on file with the Commission or the utility must provide a website address:

3.2.1 Annual Report to Stockholders for applicant, its subsidiaries and its parent for last 5 years.

3.2.2 Annual Reports to Federal Regulatory jurisdictions, such as FERC, FCC, etc., as applicable.

3.2.3 SEC 10K Reports for last 5 years and most recent SEC 10Q Report for applicant or parent. If both applicant and parent have public stockholders, submit for both. If the utility is not a public company or whose parent is not under the jurisdiction of the SEC, available substantially equivalent reports for the last 5 years should be provided.

3.2.4 Most recent proxy statement for applicant or parent. If both applicant and parent have public stockholders, then submit for both.

3.2.5 All securities prospectuses for applicant utility and parent for most recent 5-year period.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-4.0 Rate Base

4.1 Rate Base Defined

26 Del.C. § 102(3) defines Rate Base as follows:

"(3)” Rate base" means:

a. The original cost of all used and useful utility plant and intangible assets either to the first person who committed said plant or assets to public use or, at the option of the Commission, the first recorded book cost of said plant or assets; less;

b. Related accumulated depreciation and amortization; less;

c. The actual amount received and unrefunded as customer advances or contributions in aid of construction of utility plant, and less;

d. Any accumulated deferred and unamortized income taxes and investment credits related to plant included in paragraph a. above, plus;

e. Accumulated depreciation of customer advances and contributions in and of construction related to plant included in paragraph a above and plus;

f. Materials and supplies necessary to the conduct of the business and investor supplied cash working capital, and plus;

g . Any other element of property which, in the judgment of the Commission, is necessary to the effective operation of utility."

4.2 Jurisdictional Rate Base Summary

4.2.1 Submit a jurisdictional rate base summary on Schedule 2.

4.2.2 Indicate on schedule 2 in the column titled "26 Del.C. §102(3) Letter Ref." the appropriate letter reference designating the Section of the Code upon which the applicant relies for the inclusion of each item in Rate Base as set forth in subsection 4.1.

4.3 Used and Useful Utility Plant

4.3.1 Complete Schedule 2A showing total utility plant in service by major plant categories, as allocated to this jurisdiction with adjustments, if any are proposed.

4.3.2 Where rate base is computed using a 12-month or 13-month average, provide the data for the end of each month included in the calculation. Please provide the calculation for either the 12-month or 13-month average used.

4.3.3 Where rate base is allocated among jurisdictions, identify the allocation factors used and the basis for using those allocation factors.

4.3.4 Adjustments to the test year data must be fully identified and explained.

4.3.5 Utilities permitted by law to collect a Distribution System Improvement Charge ("DSIC") shall not include post-test period projected DSIC-eligible plant in their proposed used and useful utility plant. All DSIC-eligible plant shall be collected through the DSIC as provided in 26 Del.C. §§314 and 315 and 26 DE Admin.Code 1009.

4.4 Intangible Assets

4.4.1 If intangible assets are claimed in rate base, complete Schedule No. 2B.

4.4.2 Provide a statement of the specific reasons for inclusion in rate base.

4.5 Accumulated Depreciation and Amortization

4.5.1 Complete Schedule 2C showing accumulated reserve for depreciation by major plant categories if records permit.

4.5.2 When rate base is computed using a 12-month average, provide the data for the end of each month included in the calculation.

4.5.3 When rate base is allocated among jurisdictions, identify the allocation factors used and the basis for using those allocation factors.

4.5.4 Adjustments to test year data must be fully identified and explained.

4.6 Unrefunded Customer Advances and/or Contributions in Aid of Construction

4.6.1 Provide a schedule showing the actual amounts at the beginning and end of the test year and test period.

4.6.2 If estimated amounts are included, explain the basis of such estimate.

4.7 Accumulated Deferred Income Taxes and Unamortized Investment Credit

4.7.1 Complete Schedule 2D providing complete analysis of all deferred income taxes. Provide 1 schedule each for Federal Income Taxes and State Income Taxes.

4.7.2 The specific deferred income taxes shown on Schedule 2D lists some but not necessarily all deferred income taxes that may be applicable to a particular utility, hence the accounts shown should be modified as appropriate.

4.7.3 Provide a statement which fully explains the utility's deferred tax accounting practices, i.e., the basis upon which annual tax deferrals are determined and the basis upon which deferred tax reserves are charged or credited to current period.

4.7.4 Identify and provide an itemization of each tax credit balance and amortization included in the utility's rate application.

4.7.5 Provide the amount of tax or other credits available but not utilized as of the end of the test year.

4.8 Accumulated Depreciation of Customer Advances and Contributions in Aid of Construction

4.8.1 Provide a statement which describes the accounting procedures used to segregate depreciation reserves between investor provided and contributed property.

4.8.2 Provide a schedule showing the actual amounts at the beginning and end of the test year and test period.

4.8.3 If estimated amounts are included, explain the basis of such estimates.

4.9 Material and Supplies

4.9.1 If a claim is made for Material and Supplies, provide a schedule showing the balance in each of the major groupings of material and supplies for each of the 12 months preceding the test year, for the test year and for the test period.

4.9.2 If estimated balances are included, explain the basis for such estimates.

4.9.3 Explain any variances greater than $500,000 for utilities with Total Gross Revenue equal or greater than $100,000,000 and 5% for utilities with Total Gross Revenue less than $100,000,000 for the period of time for which average Materials and Supplies total balances are included.

4.9.4 When materials and supplies are computed using an average, provide the balances for the end of the month included in the calculation.

4.10 Investor Supplied Cash Working Capital

4.10.1 Complete Schedule 2E showing the components of investor supplied cash working capital included in the rate base claim.

4.10.2 Other items. If any other items are included in the working capital claim, provide a full and complete explanation in support thereof including the calculation which demonstrates the amounts so included as investor-provided funds with reference to 26 Del.C. §102(3).

4.11 Other Element of Property

4.11.1 Complete Schedule 2F to provide the amount, description, and justification for inclusion in rate base.

4.11.2 Provide a statement of the specific reasons for inclusion in rate base with reference to 26 Del.C. §102(3).

4.11.3 If a rate base claim is made for non-DSIC property under construction but not used and useful in whole or in part during the test period, provide a schedule showing each major project and indicate whether or not the project will add capacity or replace existing capacity or both. If major units of capacity are being added, show in calculation the additional revenue expected to be realized. If major units of capacity are being retired, indicate the type of property, its original cost, accumulated reserves for depreciation and the expected date of retirement from service.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-5.0 Net Operating Income

5.1 Jurisdictional Summary of Net Operating Income

5.1.1 Complete Schedule 3 providing a jurisdictional summary of net operating income for the historic test year on an actual basis and for the test period.

5.2 Revenues

5.2.1 Complete Schedule 3A showing operating revenues by major revenue category, including other operating revenues and uncollectible operating revenues, for the test year, and for the test period.

5.2.2 Electric, Gas and Water Utilities. For each tariff rate, submit a schedule showing the volume of tariff unit sales for 2 years preceding the test year, the test year, and the test period. For the purpose of this section, the volume of tariff unit sales means:

Electric - KWH sold

Gas - MCF sold

Water - Gallons sold and hydrant fees.

5.2.3 If test period volumes of sales or tariff units are based on an estimate or forecast, provide a full and complete explanation of the basis and assumptions underlying such forecast, including weather assumptions and any price elasticity effects.

5.2.4 Test period revenues should be fully detailed and explained including all mathematical calculations related thereto. This information should follow Schedule 3A with appropriate adjustments referenced to the amounts shown on Schedule 3A.

5.3 Operating Expenses

5.3.1 Complete Schedule 3B showing operating expenses, by major expense category for the test year and for the test period.

5.3.2 Test period operating expenses should be fully detailed and explained including all mathematical calculations related thereto. This information should follow Schedule 3B with appropriate adjustments referenced to the adjustment amounts shown on Schedule 3B.

5.3.3 Complete Schedule 3C showing test year and test period payroll and employee benefit experience. The expense portion of the total payroll costs should equal the payroll and benefit expense included in the various categories of Schedule 3B.

5.3.4 Complete Schedule 3D for the 5 highest paid executives showing the most recently approved base salary and itemization of all other compensation (current and deferred) on an annual basis using the most recent actual data publicly available.

5.3.5 Provide a statement of procedures used for determining depreciation rates utilized to compute the depreciation expense claim (Schedule 3B). State whether the utility is basing its depreciation rates on a study conducted for this rate application, or whether the utility is using depreciation rates previously approved by the Commission or implicit in a rate determination approved by the Commission. If the latter, state when the most recent depreciation study was performed, the docket number of the case in which it was submitted, and the numbers and dates of the order(s) approving those depreciation rates.

5.3.6 Provide a schedule showing the current and proposed depreciation accrual rate and expense by individual plant account (if not provided in the detailed supporting adjustments in Schedule 2C.

5.3.7 If a change in depreciation rates is proposed, provide a copy of the most recent depreciation study that is relied on to support the depreciation rates used for the purpose of Schedule 3B.

5.3.8 Complete Schedule 3E providing a test year summary of sales promotion, advertising and miscellaneous sales expenses. Classify advertising expense by purpose, i.e., product or service promotion, service aids, personnel and institutional.

5.3.9 Complete Schedule 3F providing all test year contributions for educational or other charitable purposes included in the operating expense totals which applicant seeks to recover from rate payers. Provide the organization names, a description of the organization, tax status, and reason for inclusion in rates.

5.3.10 Submit a statement listing all test year and test period lobbying fees paid or to be paid influencing legislation both at the state and national levels that the utility seeks to recover from ratepayers. Where a utility employee performed this activity less than full time, furnish the basis for allocations of payroll and related costs.

5.3.11 Complete Schedule 3G listing test year and test period dues paid or to be paid by the company for social and service clubs that the utility seeks to recover from ratepayer. Include costs paid directly by the utility for any executive or employee recreational or "conference" facilities. Provide the organization name, a description of the organization, tax status, and reason for inclusion in rates.

5.3.12 Complete Schedule 3H providing an analysis of actual and projected rate case expenses. If the utility is using outside consultants and counsel and used a bidding process, provide copies of the utility's request for proposals and all bids received in response. Provide the amount paid to outside consultants and counsel that provided services in the utility's last rate case.

5.3.13 Provide a schedule by major expense category of all the amounts charged or credited from each affiliated company for the test year and the test period. Provide the basis of allocation or basis of charging. State whether there has been a change in allocation method or pricing formula since the last general rate case and, finally, describe the services or products provided in Delaware and the benefits of such arrangements.

5.3.14 Operating Taxes.

5.3.14.1 Complete Schedule 3I to agree with the amount shown on Schedule 3, line 4 titled Total Operating Taxes, for the test year and for the test period.

5.3.14.2 Complete Schedules 3J and 3K in support of the amount of current and deferred state and federal income tax claimed by the utility for ratemaking purposes as reflected in total on Schedule 3I.

5.3.14.3 Provide a statement of the utility's income tax accounting practice with respect to timing differences related to liberalized depreciation, the Asset Depreciation Range System, accelerated amortization and cost of removal and all other timing differences such as employee benefits and taxes capitalized.

5.3.14.4 . Provide a statement of the utility's accounting practice with respect to all federal tax credits applicable to this filing, including a copy of all elections filed with the Internal Revenue Service related thereto.

5.3.14.5 Utilities which "normalize" all or any portion of tax credits must complete Schedule 3L.

5.3.14.6 If the utility is part of an affiliated group of companies and its federal income tax return is filed as part of a consolidated federal income tax return, please provide a statement of the procedure used to allocate the consolidated federal income tax liability, the benefits of the consolidated return, and how those benefits are reflected on the utility's books.

5.3.14.7 Complete Schedule 3M for all other Federal, State and local taxes for the test year and for the test period

5.4 Allowance for Funds Used During Construction (AFUDC)

5.4.1 Provide a schedule showing the following:

5.4.1.1 The AFUDC rate employed by the Commission in the last rate Decision.

5.4.1.2 The AFUDC rate used in each month from the end of the test period in the last case through the end of the test year and test period.

5.4.2 Provide a statement describing the methodology employed to complete the AFUDC rates for all periods of time specified in subsection 5.4.1 above.

5.4.3 Provide a statement fully describing how the AFUDC is applied in the accounting procedures.

5.5 Other Income. Provide a schedule describing the nature and amount of each item of other income for the test year and test period.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-6.0 Rate of Return

6.1 Summary of Claimed Rate of Return

6.1.1 Complete Schedule 4 providing a summary report of the proposed rate of return, including a weighted cost of capital analysis.

6.1.2 Complete Schedule 4A providing the utility's actual and estimated capital structure for the end of the test year and test period. A capital structure based on a time period beyond the test year shall be accompanied by a statement of projected new issues and retirements.

6.2 Embedded Cost of Debt

6.2.1 Describe how short-term debt is allocated between rate base and non-rate base Construction Work in Progress. Describe compensating balance requirements of credit line banks and supply documentation in support of such requirements. If the compensating balance requirements exceed the cash and float included in working capital claim, give a statement explaining the excess.

6.2.2 Complete Schedules 4B and 4C to show the composition of the embedded cost of long-term debt. Use the debt costs most appropriate to the capital structure adopted, e.g., if a test year end capital structure is used, use a test year end embedded cost analysis.

6.2.3 Describe long-term debt reacquisitions by utility and parent company, if applicable, as follows: reacqusitions by issue by year; total gain by acquisitions by year; accounting of gain for income tax and book purposes.

6.2.4 In the event that the utility believes the true or economic cost of debt exceeds the nominal costs shown in Schedule 4C because of convertible features, sale with warrants or for any other reason, a full statement of the basis for this claim should be provided.

6.3 Embedded Cost of Preferred Stock

6.3.1 Complete Schedules 4D and E to show the cost of preferred stock. Use the preferred stock cost rates most appropriate to the capital structure adopted for cost of capital computations, i.e., if a test year end capital structure is used, use a test year end embedded cost analysis.

6.3.2 Describe preferred stock reacquisitions by the utility over the past 5 years.

6.3.3 In the event that the utility claims a true or economic cost higher than the nominal rate shown in Schedule 4E due to convertibility or for any other reason, provide a full statement of the basis for this claim.

6.4 Common Equity Cost Rates

6.4.1 Complete Schedule 4F providing data on all common equity public stock offerings (including registered secondary offerings) for the current year and for the previous 5 calendar years.

6.4.2 Provide a summary statement of all stock dividends, splits or par value changes in last 5 years.

6.4.3 Provide comparative financial data on Schedules 4G and 4H for the test period without rate increase for the test year, for the most recent calendar year and for the next most recent calendar year.

6.4.4 Provide complete analysis and support for the utility's claimed common equity return rate.

6.4.5 State what coverage requirements or capital structure ratios are required in the most restrictive of applicable indentures and how these measures are computed.

6.5 Parent-Subsidiary Relationship

6.5.1 Where the utility is a subsidiary of a parent corporation, the data in Schedules 4A, B, C and D shall also be provided for the parent company or on a consolidated basis.

6.5.2 If the utility proposes to utilize the parent company's capital structure or capital costs, or to provide such data on a consolidated basis, the reasons for this claim must be fully stated and supported.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-7.0 Gross Revenue Conversion Factor

Complete Schedule 5 to show how many dollars of gross revenue increase are required to realize $1.00 of net return increase.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-8.0 Rates and Tariffs

8.1 Provide a copy of proposed Tariff Schedules

8.2 By appropriate marginal designation, in the proposed Tariff Schedules, classify proposed changes in accordance with code shown below:

C Changed Regulation

D Discontinued Rate or Regulation

I Increased Rate

N New Rate or Regulation

R Reduced Rate

S Reissued Matter

T Change in text without change in rate or regulation

8.3 Provide the rationale for proposed tariff changes (other than across the board percentage increases).

8.4 Provide a cost of service study, showing rates of return by customer class or type of service rendered for the test year and for the test period, if available, at present and proposed rates. The months used in the cost of service study shall correspond to the months used in the utility's test period.

8.5 For test period only, provide schedule showing present revenues, pro forma adjustments, proposed increases and percent of increase for each rate schedule.

8.6 If applicable, provide detailed calculation substantiating the adjustment for additional revenues from annualizing changes in customers and growth in use per customer during test year.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-1.0 Instructions

1.1 Prefiling Announcement. In order for the Commission to schedule its future workload in an efficient manner, every public utility shall file with the Commission a Notice of Intent to file a general rate increase application not less than 2 months prior to filing its application or notice of increase. If a regulated company cancels, changes or delays a proposed general rate increase application previously reported to the Commission, an amended report must be filed promptly reflecting such change of plans.

1.2 Test Year

1.2.1 The test year is the actual historical period of time for which operating and financial data will be required. The test year must include the actual "Per Books" results of operation for a 12 month period ending no more than 4 months prior to the filing of the application for increased rates. In addition, the 12-month period must end no later than 7 months prior to the filing of the application, but no sooner than 1 month after the final closing of the test year (post reversal of accrual entries), so that actual expenditures are reflected in the books of account. For example, if the actual results of operations for the 12 months ending March 30, 200x are used for purposes of the test year, the application must be filed no sooner than April 30, 200x, but no later than October 31, 200x.

1.2.2 It is suggested but not required that the test year selected correspond with the company's financial year.

1.2.3 The test year may be adjusted to reflect changes that are known and measurable at the time of the filing.

1.3 Due Date. The information required in subsequent sections of Part B is to be filed with the Commission at the time of the utility's application for an increase in rates.

1.4 Testimony and Exhibits. If the utility plans to submit prepared testimony and exhibits, they must be filed coincident with the filing of the application for rate relief.

1.5 Penalty for Non-Compliance

1.5.1 The Commission Staff will review all filings for compliance with the format and instructions furnished herein and, within 15 days after the date of filing, specifically identify any non-compliance with such format and instructions, and immediately request the Commission Secretary to promptly notify the utility of the alleged defects in compliance. Following such notification by the Commission's Secretary, the utility shall have 15 days within which to correct the alleged defects; and only upon the utility's filing of the corrected application shall such application be deemed filed with the Commission for the purposes contemplated under the Public Utilities Act. In the event the alleged defects are not corrected within the time provided hereunder, Staff may move the Commission to reject the utility's application for non-compliance with these Minimum Filing Requirements.

1.5.2 Nothing in this subsection 1.5 shall prevent a utility from filing an application in draft form for Staff's informal review and approval without prejudice, such informal review and approval not to be unreasonably withheld by Staff, nor shall subsection 1.5 affect or delay the filing date, for the purposes contemplated under the Public Utilities Act, of rate applications that comply with the format and instructions furnished herein, or whose non-compliance with such format and instructions is deemed minor by the Commission or its Staff.

1.6 General Guidelines

1.6.1 Schedules shown are for illustrative purposes and may be modified to fit the individual company as long as the data intent is complied with. The burden of proof remains by Statute on the utility; therefore, if applicant utility believes that additional information is necessary to support its case or is proposing a position which requires a departure from the basic schedules, the utility should supplement the standard filing requirements as required to support its position.

1.6.2 The Commission may require utilities to supply information to supplement these minimum requirements during the course of the Staff investigation of a specific case. The utility will be required to provide a duplicate copy of any such information requested by Staff to all intervenors to the proceeding as directed by the Commission. It is, however, the intent of the Commission in establishing minimum filing requirements to minimize the subsequent interrogatories and data requests.

1.6.3 All schedules submitted to the Commission shall be typed and shall contain the name of the person responsible for the preparation of the data.

1.6.4 Supportive work papers must be made available for Staff inspection upon request subsequent to the filing.

1.6.5 If required data has been previously filed, it may be incorporated by reference.

1.6.6 All data, statements and exhibits filed pursuant to these minimum filing requirements shall be identified by paragraph designation for which they are submitted.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-2.0 General Information

2.1 Description of Company (If presently not on file with Commission or if it has been submitted in a prior proceeding, it can be incorporated by reference and only include updates).

2.1.1 Provide a corporate history including dates of incorporation, subsequent acquisitions and/or mergers.

2.1.2 Describe completely the ownership of the utility and all relationships between applicant utility and its parent, subsidiaries, and affiliates. Furnish a chart or charts which depict(s) the intercompany relationships.

2.1.3 Provide a system map indicating all cities and counties and other government subdivisions to which service is provided.

2.1.4 Provide a statement of reasons for the proposed increase including an explanation of the major factors which gave rise to the decision to seek a rate adjustment. Also include an estimate of the dollars associated with each such major factor.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-3.0 Financial Results of Operations

3.1 An overall financial summary must be provided on Schedule 1. The information needed to complete Schedule 1 is obtained from subsequent Schedules.

3.2 Supporting Documents - Submit internally prepared financial statements or those prepared by an outside accountant or CPA for the most recent 12-month period available to correspond with the historical test year selected by the utility.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-4.0 Rate Base

4.1 Rate Base Defined

26 Del.C. §102(3) defines Rate Base as follows:

"(3) "Rate base" means:

b. Related accumulated depreciation and amortization; less;

c. The actual amount received and unrefunded as customer advances or contributions in aid of construction of utility plant, and less;

d. Any accumulated deferred and unamortized income taxes and investment credits related to plant included in paragraph a. above, plus;

e. Accumulated depreciation of customer advances and contributions in aid of construction related to plant included in paragraph a above and plus;

f. Materials and supplies necessary to the conduct of the business and investor supplied cash working capital, and plus;

g . Any other element of property which, in the judgment of the Commission, is necessary to the effective operation of utility."

4.2 Jurisdictional Rate Base Summary

4.2.1 A Rate Base Summary must be provided on Schedule 2. The rate base elements set forth on Schedule 2 correspond with the definition of Rate Base set forth on IV above. Utilities are not required to use all of these elements or may wish to include others not shown under the category of "Other Elements of Property" (line 10).

4.2.2 Indicate on Schedule 2 in the column titled "26 Del.C. §102 (3) Letter Ref." the appropriate letter reference designating the Section of the Code upon which the applicant relies for the inclusion of each item in Rate Base as set forth in Item 4.2.1 above.

4.2.3 The column on Schedule 2 "Actual at Test Year End" means "per books" with the exception of Investor Supplied Cash Working Capital, line 8. For "Actual Test Year End" Investor Supplied Cash Working Capital, use the same procedures used for developing "claimed rate base" but applied to test year actual results of operations.

4.2.4 Proposed adjustments to or computations of rate base elements (i.e., Investor Supplied Cash Working Capital) must be fully explained on Schedule 2A.

4.2.5 Detailed description of Utility Plant in Service and related depreciation reserves must be provided on Schedule 2B. The totals must agree with the column titled "Actual Test Year End" on Schedule 2.

4.3 Please provide a narrative statement covering the following points for monopoly services not subject to competition:

4.3.1 Please explain any physical deficiencies in the present property and an estimate of the cost to correct such deficiencies. If plans are underway, disclose the nature of such plans.

4.3.2 Provide an estimate of customer or usage growth for 2 years following the end of the test year and how the utility plans to meet such growth and provide the estimated cost of providing additional facilities to meet expected growth.

4.3.3 Gas and water utilities must provide a narrative description of their respective sources of supply.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-5.0 Net Operating Income Summary

5.1 A summary of net operating income must be provided on Schedule 3.

5.1.1 The "Actual for Test Year" column means actual "per books"revenue and expense for the historical test year selected without exception.

5.1.2 Operating revenues and expenses should be set forth by type of service or customer class and operating expenses by type. Supplemental schedules may be used for this purpose so long as they conform to the format of Schedule 3.

5.1.3 Proposed adjustments to test year operating revenues or experience must be fully explained on schedule 3A. Supporting documentation should be provided when available such as formal wage agreements, copies of invoices reflecting higher prices for materials purchased, tax notices, etc.

5.1.4 A calculation of Federal and State Income Taxes must be submitted on Schedule 3B.

5.1.5 Provide a narrative explanation of any Schedule "M" items (items included in determining Federal and State Income Taxes not included in Income Available for Return e.g. capitalized portion of Social Security taxes and relief and pensions (line 8), depreciation on IDC, S/S taxes and R/P capitalized (line 6), also any surplus items affecting taxable income not included in line 1) and if deferred taxes are provided on the utility's books, explain the nature of the deferred taxes and the amounts related to the test year periods as set forth on Schedule 3B.

5.1.6 Provide a calculation of present annual revenues based on test year volume of sales at present tariff rates and also showing the revenues expected to be derived from proposed rates on Schedule 3C. Utilities which have "block" rates are to base this calculation on a bill analysis for the test year selected.

5.2 Provide a narrative statement covering cost increases expected to be incurred over a 2-year period following the end of the test year, but not included in the operating expense claim for monopoly services not subject to competition.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-6.0 Cost of Capital Summary

6.1 A Cost of Capital Summary must be provided on Schedule 4 based on actual test year data and on the basis of the utility's fair rate of return claim.

6.1.1 If the fair rate of return claim is based on a capital structure different from test year actual, explain the reasons for such differences. If the difference is related to planned new financings or refinancing, please provide the detail with respect to such planned financing including the amount, cost rate, terms, etc.

6.1.2 Provide an explanation, with supporting calculations, of the methodology used to arrive at the cost rate for common equity. If a rate of return study was performed, provide a copy of such study.

6.1.3 Provide a detailed calculation of the claimed cost of debt and preferred stock on Schedules 4A and 4B, respectively.

[Reserved]

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-1.0 Background Information

1.1 Purpose. By law the Commission must take formal action on an application by a regulated company to issue securities which are payable in more than 1 year within a 30-day period after filing. In the absence of formal action within that time frame, the application is automatically approved. Part D of the Minimum Filing Requirements is designed to keep the Commission informed at all times with respect to the funding plans of all regulated companies within its jurisdiction and have the required supporting information necessary to act on formal applications in an informed manner on a timely basis.

1.2 26 Del.C. §215. This Section provides that regulated companies subject to the jurisdiction of the Commission must obtain approval of the Commission before issuing new securities which mature more than 1 year from the date of issuance. For convenience, 26 Del.C. §215 is duplicated below:

§215. Merger, Mortgage or Transfer of Property: Issuance of Securities; Assumption of Obligation of Another: Exceptions

(a) No public utility, without having first obtained the approval of the Commission, shall (1) directly or indirectly merge or consolidate with any other person or company, or sell, lease, assign, or mortgage except by supplemental indenture in accordance with the terms of a mortgage outstanding September 1, 1949, or otherwise dispose of or encumber any essential part of its franchises, plant, equipment or other property, necessary or useful in the performance of its duty to the public; or (2) issue any stocks, stock certificates, or notes, bonds or other evidence of indebtedness payable in more than one year from the date thereof; or (3) assume any obligation or liability as guarantor, endorser, surety or otherwise in respect of any security of any other person or corporation, payable or maturing more than one year after the date of such issue or assumption of liability.

(b) Application for any such approval or authorization shall be made to the Commission in writing, verified by oath or affirmation, and be in such form and contain such information as the Commission requires.

(c ) The Commission shall approve of any such proposed merger, mortgage, transfer, issue or assumption when it finds that the same is to be made in accordance with law, for a proper purpose and is consistent with the public interest. The Commission may make such investigation and hold such hearings in the matter as it deems necessary, and thereafter may grant any application under this section in whole or in part and with such modification and upon such terms and conditions as it deems necessary or appropriate. The Commission shall grant, modify, refuse or prescribe appropriate terms and conditions with respect to every such application or proposed merger, mortgage, transfer, issue or assumption, within 30 days after the filing of the application therefor, and in the absence of any such action within such period of time, any such proposed merger, mortgage, transfer, issue or assumption shall be deemed to be approved.

(d) Nothing contained in this section shall be construed in any wise to prevent the sale or lease or other disposition by any public utility of any of its property in the ordinary course of its business."

1.3 Prior Orders of the Commission. Order No. 1318 in Docket No. 781 adopted by the Commission on April 24, 1974, set forth certain minimum requirements for regulated companies in connection with the issuance of securities. Order No. 1318 is superseded by the Commission's adoption of the Minimum Filing Requirements, Part D, set forth herein.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-2.0 Notice

2.1 Notice of Financing Plans. On or before December 31 and June 30 of each year, all regulated companies subject to the jurisdiction of the Commission shall file a statement describing generally the securities offerings which are expected to be presented to the Commission during the ensuing 6-month period. Regulated companies which desire to file only 1 statement each year may do so if the statement is filed not later than December 31 of each year covering the ensuing 12-month period. Regulated companies with no plans to issue securities must file, at least annually, a statement to that effect. The annual or semi-annual notice shall contain, at a minimum, the following information:

2.1.1 A description of the securities expected to be issued, i.e., Common Stock, First Mortgage Debt, Long-Term Notes, Preferred Stock, etc.

2.1.2 The aggregate amount of such proposed security offering by type of security as in subsection 2.1.1 above.

2.1.3 The expected capitalization and capitalization ratios at the time of the security sale both before and after the issuance of the proposed new securities. This information is to be provided on Schedule No. 1.

2.1.4 A description of the purpose for the issuance of the proposed securities.

2.1.5 If a regulated company cancels, changes or delays a proposed security issue previously reported to the Commission, an amended report must be filed promptly reflecting the change of financing plans and the reasons therefore.

2.2 Prefiling Notice

2.2.1 Not later than 20 days prior to the filing of the application for approval with the Commission for the issuance of securities, each regulated company must file a Prefiling Notice.

2.2.2 The Prefiling Notice must contain the following information:

2.2.2.1 The expected filing date.

2.2.2.2 The expected closing date for the proposed securities.

2.2.2.3 The type and amount of securities to be issued by reference to the previously filed "Notice of Financing Plan."

2.2.2.4 To the extent the securities to be issued differ in any way from the previously filed "Notice of Financing Plan," the information required in subsections 2.1, 2.1.1, 2.1.2, 2.1.3 and 2.1.4 must be provided at this time.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-3.0 Formal Application for Approval

3.1 General Information (Where information is unavailable at the time of filing of the application, state the reason for such unavailability and supply estimates or explanatory material as appropriate.)

3.1.1 Name and address of the applicant.

3.1.2 Name and address of the applicant's attorney (if any).

3.1.3 Ownership of the voting stock of the applicant.

3.1.4 A detailed description of the securities to be issued.

3.1.5 A detailed statement of the reason(s) for the securities issue including a description of new property to be constructed from the proceeds of such new issue.

3.1.5.1 If the purpose of the new issue is to retire or reduce short-term debt, such as bank loans, provide a description of the purpose for which the short-term debt was incurred.

3.1.5.2 If the purpose of the new issue is to refund a maturing issue of securities, include a description of the securities to be refunded.

3.1.6 Provide a statement which sets forth the specific reasons why the type and amount of the proposed security issue was selected.

3.1.7 A copy of the most recent SEC Form 10-K and 10-Q if the applicant is required to make such filings by the Securities and Exchange Commission.

3.1.8 A copy of the registration statement or prospectus if the proposed new securities are to be registered.

3.1.9 A copy of the Opinion of Counsel with respect to the legality of the proposed new issue.

3.1.10 Copies of all documents relative to the proposed new issue such as loan agreements, supplemental indentures, note agreements, amended charter terms, etc.

3.2 Required Schedules to Be Completed

3.2.1 Public Offerings of Common Stock. Complete Schedules 1, 2 and 3 as appropriate.

3.2.2 Sales of Long-Term Debt. Complete Schedules 1, 2 and 3.

3.2.3 Sales of Preferred Stock. Complete Schedules 1, 2 and 3.

3.2.4 If more than 1 type of security issuance is included in the application, complete Schedules 1, 2 and 3 as appropriate.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-4.0 Post-Closing Filing

4.1 General Information

4.1.1 Not later than 30 days after closing, the regulated company shall file the general information required in Part III Formal Application for Approval which is unavailable at the time of filing.

4.1.2 The Post-Closing Filing shall contain:

4.1.2.1 The name and address of the regulated company.

4.1.2.2 The name and address of the regulated company's attorney (if any).

4.2 Required Schedules to Be Filed

4.2.1 Offering of Common Stock. Complete Schedule 4.

4.2.2 Sales of Long-Term Debt. Complete Schedule 5.

4.2.3 Sales of Preferred Stock. Complete Schedule 6.

4.2.4 If more than 1 type of security issuance is included in the application, complete Schedules 4, 5 and 6 as appropriate.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-1.0 General

In order that the Commission be currently informed of the earnings level of the utilities and regulated companies subject to its jurisdiction, every public utility and regulated company classified as a major utility or regulated company (those with annual intra-state PSC jurisdictional revenues of $1 million or more) shall file with the Commission the information contained in this Part E. The reports described in Part E will be based upon information recorded in accordance with the appropriate Federal Energy Regulatory Commission (FERC), Federal Communications Commission (FCC), Rural Electrification Administration (REA), and National Association of Regulatory Utility Commissioners (NARUC) Uniform System of Accounts as adopted and/or modified from time-to-time by this Commission.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-2.0 Types of Reports Required

2.1 Monthly financial reports

2.2 Quarterly rate of return reports

2.3 Annual financial reports

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-3.0 Monthly Financial Reports

3.1 Monthly financial reports shall be filed with the Commission no later than 60 days following the end of the month. The December Monthly Report shall be filed no later than 90 days following the end of the month.

3.2 The format shall be similar to the June, 1984 monthly financial reports heretofore provided to the Commission staff but may be modified as long as the data required in the format described above is substantially provided in the modified format.

3.3 Any monthly report(s) conspicuously marked by the filing utility as confidential or proprietary will be treated as confidential and will not routinely be made available to anyone other than a Commissioner, Commission Staff Members and Agents (to include Commission Consultants and Counsel), or the Public Advocate or his Agents, except pursuant to a written request for such report(s) filed with the Commission and served upon the reporting utility. Fourteen days after service upon the utility of such a written request, the report(s) shall be deemed public record(s), unless the utility has produced a court order directing that such report(s) not be made public or has petitioned the Commission for an Order establishing the confidentiality of such report(s). In any proceeding to establish the confidentiality or propriety of such report(s), the burden of proof shall be upon the utility.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-4.0 Quarterly Rate of Return Reports

4.1 Quarterly rate of return reports shall be filed with the Commission no later than 60 days following the end of the calendar quarter, except that the fourth quarter report may be filed within 120 days following the end of the calendar year.

4.2 The reporting period for the quarterly rate of return report shall be the 12 months ended each calendar quarter.

4.3 The quarterly rate of return report shall show the jurisdictional actual and/or adjusted rate base, earnings and overall rate of return based on the elements, methodology and allocation factors utilized in the most recent rate case or updated for more current financial data including pro forma adjustments.

4.4 The specific format of the quarterly rate of return report is to be devised by each utility, subject to the written approval of the Executive Director.

4.5 In the case of Delaware Electric Cooperative, the quarterly rate of return report shall also include a computation of Times Interest Earned Ratio (TIER).

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-5.0 Annual Financial Reports

5.1 Two copies of Annual financial reports shall be filed with the Commission no later than 120 days following the end of the calendar year.

5.2 Annual financial reports currently filed with federal jurisdictions such as FERC Form Nos. 1 and 2, FCC Form M, and REA Form 7 are a satisfactory format for reporting to the Commission.

5.3 In the case of water utilities, which do not file annual financial reports with federal jurisdictions, the Commission prescribed format attached hereto for major water utilities shall be used.

5.4 Immediately upon publication of its annual report to stockholders for the period covered by the annual financial report, each major utility shall file 2 copies thereof with the Commission. If no annual report to stockholders is published, the Commission shall be so informed in writing.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-6.0 Other Financial Reports

To the extent the utility issues Quarterly reports to stockholders or files 10Q and 10K Reports with the Securities and Exchange Commission, 2 copies of all such reports shall be contemporaneously provided to the Commission.

(Annual Intra-State PSC Jurisdictional Revenues of $1 Million or More)

Electric

Delaware Electric Cooperative, Inc.

Delmarva Power & Light Company, d/b/a Conectiv Power Delivery

Gas

Chesapeake Utilities Corporation

Telephone

Verizon Delaware Inc.

Water

Artesian Water Company, Inc.

United Water Delaware Inc.

EFFECTIVE JANUARY 1, 1986

BY ORDER NO. 2704

ANNUAL REPORT

FOR YEAR ENDED ____________________________________

COMPANY

ADDRESS

INDIVIDUAL FURNISHING INFORMATION

NAME _________________________________________

TITLE _________________________________________

ADDRESS _________________________________________

E-MAIL ADDRESS ____________________________________

TELEPHONE NO. ____________________________________

FACSIMILE NO. ____________________________________

The attached schedules are to reflect information recorded in accordance with the National Association of Regulatory Utility Commissioners' Uniform System of Accounts.

Effective: April 21, 1983

By Order No.: 2442

Dated: March 22, 1983

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-1.0 Petition to Place Rates into Effect

1.1 Any water utility with annual operating revenues of $500,000 or more (Class “A”) may Petition the Commission for permission to place increased rates into effect on less than 60 days notice as permitted in Section 304 of the Public Utilities Act, but must provide at least 30 days notice to the Commission.

1.2 Content of Petition – The Petition shall contain the following:

1.2.1 A request to place rates into effect on less than 60 days notice;

1.2.2 A statement indicating the dollar amount and percentage of the rate change;

1.2.3 A statement indicating that the request for the rate change sought is based solely on increases or decreases in purchased water and/or electricity unit costs, which the Company has experienced within 18 months from the date of the last Commission Order establishing base rates for the Company which determined a fair rate of return, together with a statement that such increases or decreases were not considered in setting such base rates;

1.2.4 A statement demonstrating that the proposed rate change, if it is a revenue increase, will not permit the utility to earn a return in excess of that allowed by the Commission in its last rate proceeding, and that the historical consumption units remain reasonably representative and appropriate.

1.3 Exhibits to Petition – The utility shall supply at least the following (in addition to completing the attached schedules):

1.3.1 A proposed tariff and proof of revenue calculation reflecting the proposed revenue change;

1.3.2 Schedules showing:

1.3.2.1 Comparative Statement of Income as per the Company’s last rate proceeding, at proposed rates and as per book for a 12-month period ending no more than 3 months prior to the filing of Petition; and

1.3.2.2 Calculation of the estimated annual change (increase or decrease) of purchased water and/or electricity costs.

1.3.3 For changes in electricity costs the utility shall make available to the Commission Staff for review, workpapers (which may be in the form of a computer print-out) which reprice for each power account the cost of electricity at the current rates based on consumption levels approved or implicit in the last general rate proceeding. The repricing for each account shall show the applicable rate, billing period, number of days in billing period, customer service charge, billing demand, measured demand and usage.

1.3.4 For changes in purchased water costs, the utility shall provide workpapers showing the volume approved either expressly or by necessary implication in the last general rate proceeding including purchases for conjunctive use, repriced at current levels.

1.3.5 A bond, in proper form, without surety, subject to Commission requirement of surety thereon at any time prior to or after the effective date of the proposed increase in rates, to secure the refund of the annualized amount of any increases proposed, which are dependent upon or caused by temporary or under bond rates placed into effect by the supplier of purchased water or electricity. Such bond to be conditioned upon the immediate refund pursuant to Commission Order of the amount of any over-collection should the supplier’s temporary or under bond rates be reduced.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-2.0 Notice Requirement

Using the form of notice hereto attached, the utility shall provide at least 20 days notice to its customers of a hearing on its request for expedited rate relief by publishing such in the legal classified sections of 2 newspapers with local circulation in its service territory.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-3.0 Hearing

The Commission will, at its earliest reasonable convenience, schedule a hearing on the utility’s request for effective new tariffs. The Commission Staff shall review the utility’s calculations, repricing the various expense items at current rates and advise the Commission if such have been accurately performed. If the Commission Staff advises the Commission that such repricing has been accurately performed, the Commission may, at its option, hear and review the utility’s request for an expedited rate change at a regularly scheduled public meeting of the Commission. The burden of proof at such hearing shall be as set forth in 26 Del.C. §307.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-4.0 Availability of Expedited Procedure

4.1 This regulation (Part G) shall be construed to require an application hereunder to reduce rates so as to flow through to customers the benefits of any reduction in purchased electricity cost or purchased water costs where such reduction would exceed by 3% or more the unit cost used in calculating the appropriate expense level in the utility’s last completed base rate proceeding.

4.2 This regulation (Part G) shall not be used to increase rates unless the increase in purchased electricity or purchased water costs forming the basis for the proposed increase shall exceed a 3% increase over the unit cost for such expense used in the utility’s last completed base rate proceeding.

4.3 This regulation (Part G) shall be available and petitions may be filed hereunder until October 1, 1984, and not thereafter except by written permission in the form of a Commission Order authorizing such filing.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

26 Del. Admin. Code § 1002-5.0 Reports

Any utility using the procedures set forth in this regulation to increase rates on an expedited basis shall, not less than quarterly after such increase is effective, file a written report with the Commission demonstrating that the rate of return allowed in the last rate case on the rate base therein established has not been exceeded by reason of the increased rates since that proceeding. If, at any time, it appears that such return has been or may be exceeded, the utility shall immediately notify the Commission and propose a method for the reduction of its rates to terminate any over-recovery.

History

27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)
27 DE Reg. 117 (08/01/23)

1003 Interest on Commission Ordered Rate Refunds

26 Del. Admin. Code § 1003 Interest on Commission Ordered Rate Refunds

Public Service Commission

1003 Interest on Commission Ordered Rate Refunds

Administrative History:

PSC Order No. 2696 (Nov. 26, 1985); PSC Regulation Docket No. 11.

Effective: January 1, 1986

Whenever the Commission deems it necessary or appropriate to order a public utility to refund all or any portion of a rate or rates collected by such utility pursuant to 26 Del.C. §306 or while pending appeal in any court, either State or Federal, because such rates or charges are determined to be excessive and not just and reasonable, such refund shall be made at such time, in such amounts and in such manner as may be required by order of the Commission, together with interest. Interest shall be computed from the date of payment of such rates until the date refunds are made at an average prime rate for each calendar quarter. The applicable average prime rate for each calendar quarter shall be the arithmetic mean, to the nearest one-hundredth of one percent, of the prime rate values published in the Federal Reserve Bulletin for the fourth, third and second months preceding the first month of the calendar quarter. The interest required to be paid shall be compounded annually on the anniversary of the effective date of the rates subject to refund.

For good cause shown the Commission may establish a different rate or otherwise direct.

1004 Regulations Governing Tariffs Which Set Forth Rates, Terms, and Conditions for the Attachment to Any Pole, Duct, Conduit, Right-of-Way, or Other Similar Facilities of Any Public Utility

26 Del. Admin. Code § 1004 Regulations Governing Tariffs Which Set Forth Rates, Terms, and Conditions for the Attachment to Any Pole, Duct, Conduit, Right-of-Way, or Other Similar Facilities of Any Public Utility

EFFECTIVE DATE: NOVEMBER 1, 1989

ADMINISTRATIVE HISTORY:

ISSUED: PSC ORDER NO. 3092 (SEPT. 26, 1989); PSC REGULATION DOCKET NO. 16

AMENDED: PSC ORDER NO. 3247 (MAR. 19, 1991)

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-1.0 Short Title

This regulation shall be known and referred to as "Delaware PSC Attachment Regulation."

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-2.0 Authority

This regulation is enacted pursuant to 26 Del.C. §209, 26 Del.C. §201 (64 Del. Law Ch. 227), and 29 Del.C. Ch. 101.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-3.0 Definitions

Attaching Entity Means the entity seeking attachment.

Attachment: Means connection to the poles, ducts, conduits, rights-of-ways, or other similar facilities of any public utility by any other public utility, cable television system (hereinafter "CATV"), other entity or individual.

Commission: Means the Public Service Commission of the State of Delaware.

Existing Agreement: Means a written attachment agreement between a public utility and one or more attaching entities entered into prior to, but still in effect as of, the effective date of these regulations.

Future Agreement: Means a written attachment agreement between a public utility and one or more attaching entities entered into, on, or after the effective date of these regulations. "Future Agreement" shall also include any amendment to an existing agreement which is made on or after the effective date of these regulations.

Owned or Controlled: This term, when used in the context of facilities which are within the scope of these regulations (hereinafter "facilities") shall include both property interests owned in fee and those held or controlled by a public utility which are less than fee simple property interests, such as a right-of-way, provided that the public utility has the legal right to allow attachment to such property interests.

Public Utility Means for purposes of this regulation, a utility, as defined by 26 Del.C. §102(2) (and not exempt by 26 Del.C. §202 from regulation by the Public Service Commission) which owns or controls poles, ducts, conduits, and rights-of-way, or other similar facilities appropriate for shared use.

Similar Utility Facilities: Means utility facilities suitable and appropriate for shared use with attaching entities, e.g., poles, conduits, and rights-of-way. As used in this regulation, this term specifically excludes any electric, gas, or water transmission or distribution mains or lines owned, controlled, or used by any public utility.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-4.0 Applicability

This regulation applies to the rates, terms, and conditions for any attachment to poles, ducts, conduits, rights-of-way, or other similar facilities owned or controlled by any public utility.

This regulation specifically does not apply to attachments by a governmental agency insofar as it is acting on behalf of the public health, safety, or welfare in the performance of traditionally governmental functions, but does apply to common use by such agencies or their instrumentalities if the use is to provide any service other than those traditionally provided by governmental agencies.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-5.0 Filing of Attachment Agreements

5.1 Existing Agreements. Within 30 days from the effective date of these regulations, each public utility which presently permits attachment to any facilities owned or controlled by it shall file certified copies of all written agreements governing such attachments with the Commission.

5.2 Future Agreements. Within 30 days from the mutual execution of any future attachment agreement, a certified copy thereof shall be filed with the Commission by the public utility which is a party to such agreement.

5.3 Failure to File Attachment Agreement. Any attachment agreement not filed within the time limits specified above shall be voidable by any party thereto or by the Commission.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-6.0 Commission Approval of Attachment Agreements

6.1 Notice of Filing

6.1.1 Existing Agreements

6.1.1.1 Each public utility filing an existing agreement under subsection 5.1 shall provide written notice of such filing to each attaching entity which is a party to such agreement. Such notice shall contain a brief explanation of such attaching entity's rights under subsections 6.2 and 6.3 and shall include a copy of these regulations. Proof of the sending of such notices shall be filed with the Commission within 45 days of the effective date of these regulations.

6.1.1.2 Within 45 days of the effective date of these regulations, the Commission shall cause a notice of the filing of all such existing agreements to be published in accordance with 26 Del.C. §102A. Such notice shall contain a brief explanation of the purpose of such filing and the rights of any interested person to file written comments or seek formal proceedings before the Commission.

6.1.2 Future Agreements

6.1.2.1 Each public utility filing a future attachment agreement under subsection 5.2 shall submit therewith a written statement from the attaching entity(ies) party thereto acknowledging receipt of a copy of these regulations and knowledge of such attaching entity's rights under subsections 6.2 and 6.3 hereof.

6.1.2.2 In addition to the written acknowledgement requirement under subsection 6.1.2.1 above, each public utility filing a future agreement under subsection 5.2 shall cause notice of such filing to be published in accordance with 26 Del.C. §102A. Such notice shall contain a brief explanation of the purpose of such filing and the right of any interested person to file written comments or seek formal proceedings before the Commission. Proof of the publication of such notice shall be filed with the Commission within 15 days of such future agreements under subsection 5.2.

6.2 Presumption of Regularity; Complaints; Burden of Proof

6.2.1 Presumption of Regularity. In recognition of the fact that attachment agreements are the result of arms-length negotiations conducted within regulatorily-established perimeters and subject to administrative review, all such agreements filed with the Commission shall be presumed to comply with the standards set out in Section 7.0 of these regulations.

6.2.2 Complaints, Investigations, Filing Deadlines

6.2.2.1 Upon written complaint of: the Public Advocate; any interested member of the public who is determined to have sufficient standing; any public utility or attaching entity which is a party to such agreement; or upon its own initiative, the Commission may conduct an investigation into the terms of any attachment agreement filed with it for conformance with the standards set out in Section 7.0.

6.2.2.2 Any complaint filed under this section shall specify with particularity those aspects of the agreement(s) complained of and the reasons therefor.

6.2.2.3 Complaints regarding future agreements shall be filed within 90 days of the filing of such agreements with the Commission under subsection 5.2.

6.2.3 Complaint Proceedings; Burden of Proof. Any proceeding under this section shall be conducted in accordance with the Delaware Administrative Procedures Act, the Commission's "Rules of Practice" and these Regulations [to the extent each may be applicable. However, to the extent the matters at issue involve the Commission's legislative ratemaking authority, the Commission may proceed accordingly, and the utility shall have the burden of proof to establish that its proposed terms, conditions, and rates for the proposed attachment are just and reasonable.]

6.3 Commission Approval

6.3.1 Any attachment agreement filed with the Commission shall be deemed to have final Commission approval if no written complaint has been filed within the time limits established by subsection 6.2.2.3 above; provided, however, that the Commission may, upon its own initiative, commence an investigation into the terms of an attachment agreement at any time, modifying such agreement prospectively, by final Order, upon the conclusion of such investigation.

6.3.2 In the event a written complaint is timely filed under subsection 6.2.2.3, such attachment agreement shall remain subject to modification, retroactively, by the Commission until finally approved at the conclusion of such proceedings as the Commission deems appropriate.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-7.0 Standards Governing Attachment Agreements

7.1 General Standards

7.1.1 The provision of attachment facilities shall be deemed to be a service which prospective attaching entities may use on an "as-offered" basis. Public utilities shall retain the right to enter, renew, continue, or permit the transfer or assignment of attachment agreements in their sole discretion based upon availability considerations or other grounds which it reasonably deems to be relevant, subject to the controlling provisions, if any, of such attachment agreements regarding renewal, continuation, transfer, or assignment.

7.1.2 Attachment agreements may contain such provisions as deemed necessary or appropriate to the parties thereto but, at a minimum, shall contain the rates, terms, and conditions under which attachments may be made by an attaching entity to any facilities owned or controlled by a public utility.

7.1.3 Such rates, terms, and conditions:

7.1.3.1 Shall be just and reasonable;

7.1.3.2 Shall not, with respect to common use purposes, be unduly preferential or unjustly discriminatory; and

7.1.3.3 Shall give due consideration to the interests of the subscribers of the attaching entity, as well as the interest of the consumers of the public utility.

7.2 Rates and Charges

7.2.1 Parties to attachment agreements may establish such just and reasonable rates as they can agree to.

7.2.2 A pole attachment rate is "just and reasonable" if it assures the host public utility of not less than the additional costs of providing pole attachments, nor more than an annual amount determined by allocating the cost of the support component of the pole equally among all users thereof and the cost of the usable space component of the pole according to the percentage of usable space allocated to each user, as expressed in the following formula:

Pole Cost x SS + Pole Cost x US x % US = Maximum Annual Rate

WHERE:

Pole Cost = Annual operation and maintenance expense attributable to the entire pole

PLUS

Annual fixed changes for depreciation, property taxes, return, and related income taxes on capital attributable to the pole, based upon embedded cost of average bare pole less 15% (5% for telecommunications utilities) for cross-arms and other non-pole related items.

SS = Percentage of total average bare pole allocated as "support component."

N = Total number of public utilities and attaching entities making use of the pole [a reasonable system-wide average based on an actual physical inventory not more than 3 years old may be used.]

US = Percentage of total average pole allocated as "usable space."

%US = Percentage of usable space allocated to attaching entity.

For purposes of this subsection 7.2.2:

7.2.2.1 "Usable space" means the space on the pole above the minimum ground clearance level which can be used for the attachment of wires, cables, and associated equipment. Absent proof sufficient to establish some other minimum ground clearance in any specific case, 20 feet shall be the presumed minimum ground clearance.

7.2.2.2 "Support component" means the entire length of the pole not deemed to be "usable space."

7.2.2.3 "Average pole". Absent proof sufficient to establish some other average pole length in any specific case, "average pole" length shall be presumed to be:

32.5 feet for telephone utility poles

37.5 feet for electric utility poles.

7.2.3 An attachment rate for conduit, duct, right-of-way, or other similar facilities shall be deemed just and reasonable if it assures the host public utility of not less than the additional cost of providing the facility for attachment nor more than an annual amount determined by allocating the cost of such conduit, duct, right-of-way, or other similar facility equally among all users thereof.

7.3 Make-Ready Charges. Parties to an attachment agreement may establish such 1-time "make-ready" charges as they can agree upon provided that the amounts so established must bear a reasonable relationship to the actual 1-time costs incurred by the host utility in making the facility available for attachment.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-8.0 Failure To Reach Agreement

8.1 Where a public utility and an attaching entity are unable to reach agreement with respect to the rates, terms, and/or conditions under which an attaching entity may use facilities owned or controlled by a public utility, either party may file a petition requesting the Commission to resolve the dispute.

8.2 Any petition filed under this section shall be verified and shall specify:

8.2.1 That the host public utility has determined, under subsection 7.1.1 of these regulations, to make space available to the prospective user;

8.2.2 Those points upon which the parties have been able to reach agreement;

8.2.3 Those points upon which the parties have not been able to reach agreement, setting forth the reasons therefor.

8.3 Upon receipt of such a petition, the Commission shall commence such proceedings, formal or informal, as it deems most appropriate to expedite a satisfactory resolution of the dispute. All such petitions shall be finally decided or dismissed within 360 days of their filing with the Commission.

8.4 In reviewing the rates, terms, or conditions of any attachment agreement under Sections 5.0 or 8.0 of these regulations, the Commission may consider, among other things:

8.4.1 The annual cost to the public utility of providing the facilities subject to attachment;

8.4.2 The interest of the consumers or subscribers of the attaching entity;

8.4.3 The interest of the customers of the public utility providing the facilities; and

8.4.4 The annual cost to the attaching entity to construct, own, and operate its own facilities.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-9.0 Savings Clause

The time limits set out in these regulations have been established to facilitate a smooth and orderly procedure. However, such time limits may be extended or waived by the Commission upon an appropriate showing of just cause.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

26 Del. Admin. Code § 1004-10.0 Effective Date of the Regulation

The effective date of this regulation is November 1, 1989.

History

27 DE Reg. 891 (05/01/24)
27 DE Reg. 891 (05/01/24)

1005 Requirements for Contemporaneous Notice of Transfer from Public Utility Plant Service Accounts Other Than Normal Retirements

26 Del. Admin. Code § 1005 Requirements for Contemporaneous Notice of Transfer from Public Utility Plant Service Accounts Other Than Normal Retirements

Public Service Commission

1005 Requirements for Contemporaneous Notice of Transfer from Public Utility Plant Service Accounts Other Than Normal Retirements

Effective Date: March 1, 1990.

Administrative History:

PSC Order No. 3117 (Jan. 16, 1990); Regulation Docket No. 22.

No public utility may, without giving contemporaneous written notice to the Commission explaining the details of the transaction, reclassify property from a plant-in-service account or plant held for future use account, of any similar account which is normally used in the determination of the utility rate base into non-utility property accounts except for normal retirements in the usual course of business. Such notice shall include the estimated fair market value of all transferred properties, and if the property is more than $100,000 in value, the notice shall be accompanied by an independent appraisal of said property.

1006 Requirements for Notice to the Commission Concerning the Intent to Incur Certain Short-Term Indebtedness

26 Del. Admin. Code § 1006 Requirements for Notice to the Commission Concerning the Intent to Incur Certain Short-Term Indebtedness

Public Service Commission

1006 Requirements for Notice to the Commission Concerning the Intent to Incur Certain Short-Term Indebtedness

Effective Date: March 1, 1990.

Administrative History:

PSC Order No. 3118 (Jan. 16, 1990); Regulation Docket No. 23.

PSC Order No. 6602 (Apr. 26, 2005); exempting Verizon Delaware, Inc.

No public utility, without having first given at least fifteen (15) days prior written notice to the Commission, which may be accomplished through a quarterly or annual report of, forecast short-term debt requirements, may issue or borrow any amount of short-term debt (defined as "any debt due in one year or less, and not subject to the approval of the Commission under 26 Del.C. §215," with the exception of debt that is used to repurchase or retire previously approved long term securities) which, when added to existing short-term debt exceeds ten (10) percent of the utility's total capitalization (defined as total equity, including retained earnings plus short-term debt, long-term debt and unamortized investment tax credits."

1007 Establishments by the Commission of a Format for Reporting by Utilities of Accidents Involving Any Personal Injury or Fatality in Compliance with 26 Del.C. §213

26 Del. Admin. Code § 1007 Establishments by the Commission of a Format for Reporting by Utilities of Accidents Involving Any Personal Injury or Fatality in Compliance with 26 Del.C. §213

Public Service Commission

1007 Establishments by the Commission of a Format for Reporting by Utilities of Accidents Involving Any Personal Injury or Fatality in Compliance with 26 Del.C. §213

Format for Reporting by Utilities of Accidents Involving Any Personal Injury or Fatality in Compliance with 26 Del.C. §213.

Effective Date: June 1, 1991.

Administrative History:

PSC Order No. 3257 (April 30, 1991); PSC Regulation Docket No. 26

[NAME OF SUBMITTING UTILITY]

MAJOR ACCIDENT (DEATH OR INJURY) REPORT

C O N F I D E N T I A L

26 Del.C. §213

(A) The Commission may require every public utility to give immediate notice to the Commission of the happening of any accident in or about, or in connection with, the operation of its service and facilities, wherein any person has been killed or apparently injured, or where complaint of injuries has been made, and to furnish such full and detailed report of such accident within such time and in such manner as the Commission may prescribe.

(B) The report required by subsection (a) of this section shall not be open for public inspection, except by order of the Commission, and shall not be admitted in evidence for any purpose in any suit or action for damages growing out of any matter or thing mentioned in such report.

DATE FILED:__________________________

An "Accident" is any event, happening, or occurrence involving the operation of utility plant, services or facilities which are used to provide public utility service within the State of Delaware without regard to the physical location of the facilities.

For purposes of this report only serious accidents are required to be reported. A serious accident is defined as one involving:

(1) The death of a person.

(2) Injury to an employee on duty sufficient to incapacitate him from performing his ordinary duties for a period longer than one day.

(3) Injury to a person other than an employee on duty sufficient to incapacitate the injured person from following his customary vocation, or mode of life, for a period of more than 1 day

FILING REQUIREMENTS

This Report is to be filed pursuant to 26 Del.C. §213 where a person has been killed or apparently injured or where a complaint of injuries has been made. It is therefore not available for public inspection except by order of the Commission. Notification from the utility by telephone [(302) 736-7500] or other immediate means [FAX # (302) 739-4849] must be given to the Commission of any such accident involving a fatal injury as soon as possible within 24 hours after the utility learns of the accident and for all apparently non-fatal as well as fatal accidents this report form completed to the extent possible within (72) hours after the utility learns of the accident.

If information required by this form is not available within such seventy-two (72) hour period, this report is to be filed as completely as possible and supplemental reports shall supply the missing information as soon as it becomes available.

CONFIDENTIAL

ACCIDENT REPORT

(USE ADDITIONAL SHEETS IF NEEDED)

Date and Time of Accident:_____________________________________________(AM)(PM).
Location of Accident:______________________________________________________
Name(s) & Address(es) of Injured:

Description of Accident (and corrective action, if required):

NAME AND TELEPHONE NUMBER OF PERSON FILING THE REPORT :

______________________________________ ( ) __________________________

1009 Regulations Implementing the Water Utility Distribution System Improvement Charge (“DSIC”) and the Utility Facility Relocation Charge (“UFRC”)

26 Del. Admin. Code § 1009 Regulations Implementing the Water Utility Distribution System Improvement Charge (“DSIC”) and the Utility Facility Relocation Charge (“UFRC”)

Public Service Commission

1009 Regulations Implementing the Water Utility Distribution System Improvement Charge (“DSIC”) and the Utility Facility Relocation Charge (“UFRC”)

1.0 General

1.1 Authority. These regulations are adopted pursuant to 26 Del.C. §§209(a), 314(d) and 315(f) and 29 Del.C. ch. 101.

1.2 Purpose. The purpose of these regulations is to standardize the format utilities shall use to present financial and operating data that support the recovery of eligible capital improvements costs, made pursuant to 26 Del.C. §§314 and 315.

1.3 Capitalized Terms. Capitalized terms used herein that are defined in 26 Del.C. §§314 and 315 shall have the same meaning as they have in those sections. Other capitalized terms shall have the meaning ascribed to them in these regulations.

2.0 Effective Date and Recovery Period

2.1 A utility may initiate or seek a change in its DSIC or UFRC rate by filing an application and supporting schedules as required by these Regulations with the Commission to be effective on January 1st or July 1st of each year. Applications shall be filed with the Commission at least 30 days prior to the effective date.

2.2 New DSIC and UFRC rates shall be effective for bills rendered on and after January 1 and July 1 each year without proration.

2.3 The DSIC rate shall be adjusted semi-annually for Eligible Distribution System Improvements placed in service during the six-month period ending two months prior to the effective date. For a January 1 effective date, the applicable recovery period is May 1 through October 31; for a July 1 effective date, the applicable recovery period is November 1 through April 30.

2.4 The UFRC rate shall be adjusted semi-annually for Eligible Utility Facility Relocations occurring during the six-month period ending two months prior to the effective date. For a January 1 effective date, the applicable recovery period is May 1 through October 31; for a July 1 effective date, the applicable recovery period is November 1 through April 30.

2.5 The DSIC/UFRC rate shall be reset to zero as of the effective date of new base rates that provide for the prospective recovery of the annual costs theretofore recovered under the DSIC/UFRC rate.

2.6 Utilities may file DSIC/UFRC applications while a base rate case is pending; however, where the application includes Eligible Distribution System Improvements or Eligible Utility Facility Relocations that fall within the utility’s selected test period in the base rate case, the utility shall demonstrate in the DSIC/UFRC application that the Eligible Distribution System Improvements or Eligible Utility Facility Relocations were not included in the test period rate base.

3.0 Filing Requirements

3.1 Each DSIC / UFRC filing shall include the following information:

3.1.1 A PSC filing cover sheet (which can be found at the Commission website;

3.1.2 A cover letter from the utility;

3.1.3 The appropriate filing fee as required by 26 Del.C. §114(a);

3.1.4 An original application and five (5) copies (Staff reserves the right to request additional copies), which shall include:

3.1.4.1 A request to place rates into effect in no less than thirty (30) days from the date of the application;

3.1.4.2 The new DSIC/UFRC rate expressed as a percentage carried to two (2) decimal places; and

3.1.4.3 The dollar amount and percentage of the proposed DSIC/UFRC rate change.

3.1.5 The identification of a utility contact person responsible for the application.

3.1.6 A DSIC / UFRC Application shall include the following schedules:

3.1.6.1 Schedule 1: Development of rate and supporting data (see Form 1);

3.1.6.2 Schedule 1A: Capital structure approved in the utility’s most recent base rate/general rate case (see Form 2);

3.1.6.3 Schedule 1B: Overcollections or Undercollections from the utility’s previous DSIC/UFRC filing (see Form 3);

3.1.6.4 Schedule 2 (see Form 4):

3.1.6.4.1 For DSIC Filings: Net cost of projects (identified by utility’s internal project number) placed into service, and unreimbursed plant additions and plant retired, for the appropriate DSIC filing period.

3.1.6.4.2 For UFRC Filings: Identification (by utility’s internal project number) of relocated unreimbursed utility plant or facilities and plant retired for the appropriate UFRC filing period.

3.1.6.5 Schedule 2A: Net Accumulated Depreciation, identified by NARUC account number for DSIC Filings and by FERC USOA account number for UFRC Filings (see Form 5);

3.1.6.6 Schedule 3: Revised tariff page(s). Additions should be indicated by underlining; deletions should be indicated by strikethroughs.

3.2 The utility shall serve the Division of the Public Advocate’s office with a copy of the Filing at the same time that the utility files the Filing with the Commission.

3.3 The utility shall notify its customers of changes in the DSIC or UFRC rate by including appropriate information in the first bill that customers receive following any change in the DSIC or UFRC rate. A message printed directly on the bill shall be acceptable notice.

4.0 Review and Approval Procedure

4.1 Staff will review each utility’s DSIC/UFRC application to ensure compliance with the provisions of 26 Del.C. §§314 and 315 and these regulations. Staff has five (5) days to review a Filing for compliance.

4.2 Staff shall notify the utility of any defect(s) in its Filing within five (5) business days of its submission to the Commission. The utility shall have five (5) business days to correct such defect(s) and resubmit the Filing.

4.3 Within five (5) business days of a utility’s Filing, Staff and the Division of the Public Advocate may issue data requests to the utility concerning the Filing. Staff will attach a Certificate of Service identifying the person upon whom electronic service was made. Such data requests shall be deemed served if sent to the utility’s identified representative(s) via electronic mail at the correct electronic mail address.

4.4 The utility shall submit its written responses to any data requests issued by Staff and/or the Division of the Public Advocate to the Staff analyst, Staff counsel, and the Division of the Public Advocate within five (5) business days of their receipt.

4.5 As soon as reasonably practicable, but in no event fewer than seven (7) calendar days before the Commission meeting at which the Filing is scheduled for consideration, Staff shall advise the utility in writing whether it intends to recommend that the Commission approve or deny the Filing. If Staff will recommend that the Commission deny the Filing, Staff shall fully set forth its reasons therefore. Staff shall also provide its recommendation to the Commission in writing.

4.6 The Filing will be scheduled for consideration at the Commission meeting that is the closest meeting prior to the thirty (30) day deadline. If Staff has recommended that the Commission deny the Filing, the utility will be permitted to submit evidence contesting that recommendation.

4.7 Upon Commission approval of the Filing, the DSIC/UFRC rate will be implemented pending the year-end Staff audit discussed in Section 6.

5.0 DSIC/UFRC and Customer Bills

5.1 The DSIC/UFRC charge shall be broken out as a separate line item on customers’ bills.

5.2 The DSIC/UFRC rate shall be expressed as a percentage carried out to two (2) decimal places.

5.3 The DSIC shall be applied to the total amount billed to each customer under the utility’s applicable water rates and charges.

5.4 The UFRC shall be applied to the portion of the customer’s charge related to the delivery or distribution of natural gas or electricity.

5.5 The DSIC/UFRC rate applied between base rate filings shall be capped at 7.5% of the amount billed to customers under otherwise applicable rates and charges. The DSIC/UFRC rate increase applied shall not exceed 5% within any twelve (12)-month period. With respect to any UFRC rate filed by any electric or natural gas utility, the aforesaid level of increase, consistent with 26 Del.C. §315(c), is limited to the portion of the customer’s charge related to the delivery or distribution of natural gas or electricity.

6.0 Annual Reconciliation and Audit

6.1 DSIC and UFRC rates shall be subject to an annual reconciliation based on a period consisting of the twelve months ending December 31 of each year.

6.2 DSIC and UFRC rates shall be subject to audit by the Staff. Such audits will be conducted between February and May of each year. Staff will visit the utility’s Delaware administrative offices to review the utility’s documents. The utility must make staff available to assist with the field audit.

6.3 Discovery.

6.3.1 Staff may issue data requests to the utility during the annual audit to obtain information regarding but not limited to:

6.3.1.1 Whether the plant included in the calculation of the proposed DSIC/UFRC was an Eligible Distribution System Improvement or an Eligible Utility Facility Relocation;

6.3.1.2 Whether the utility used the correct depreciation and cost of capital rates in the calculation;

6.3.1.3 Whether the utility correctly accounted for all retirements corresponding to the Eligible Distribution System Improvement or the Eligible Utility Facility Relocation;

6.3.1.4 Whether the approved DSIC/UFRC rate was applied correctly to customers’ bills; and

6.3.1.5 Whether any over- or undercollections were properly reflected in the calculation of the DSIC/UFRC rates.

6.3.2 26 DE Admin. Code §1001-2.6.6 shall govern the deadline for responses to such data requests.

FORM 1

SCHEDULE 1: DEVELOPMENT OF RATE AND SUPPORTING DATA

Item

11/1/XXXX-4/30/XXXX

Net Utility Plant Additions (Schedule 1A and Schedule 2)

Net Accumulated Depreciation Reserve Change (Schedule 2A)

Net Change in Rate Base (Line 1 + Line 2)

Pre-Tax Rate of Return (Schedule 1A)

__%

Semi-Annual Pre-Tax Rate of Return (Line 4/ 2)

__%

Semi-Annual Investment Cost Recovery (Line 3 * Line 5)

Semi-Annual Depreciation Expense (Schedule 2A)

Semi-Annual DSIC/UFRC Revenue Requirement (Line 6 + Line 7)

Total Over-/Undercollection from Previous DSIC/UFRC (Schedule 1B)

Total Semi-Annual DSIC/UFRC Revenue Requirement (Line 8 + Line 8A)

Semi-Annual Projected Total Revenues (for DSIC)

Semi-Annual Projected Distribution Revenues (for UFRC)

Projected DSIC/UFRC Rate Increase (Line 9/Line 10)

___%

FORM 2

SCHEDULE 1A: CAPITAL STRUCTURE APPROVED IN MOST RECENT GENERAL/BASE RATE CASE

Capital Structure in PSC Docket No. XX-XXX

Cost

Weighted Cost

Revenue Multiplier

Pre-Tax Cost

Cost of Debt

XX.XX%

X.XX%

X.XXXXX

X.XX%

Cost of Equity

XX.XX%

X.XX%

X.XXXXX

X.XX%

100%

X.XX%

FORM 3

SCHEDULE 1B: OVER/UNDERCOLLECTIONS FROM PREVIOUS DSIC/UFRC FILINGS

Docket No.

Over/(Under)Collection

XX-XXX

$______________

XX-XX

$______________

FORM 4

SCHEDULE 2: PROJECTS PLACED INTO SERVICE AND/OR RETIRED

Utility Plant in Service 11/1/XX – 4/30/XX

Project Name

Description

Project No.

DSIC/UFRC Amount(net of CIAC)

Retirement Cost

Rt. 13 Street Widening

Relocate water/gas main

XXXXX

$___________

Rt. 7 mall construction

Relocate gas line

XXXXX

$___________

I-95 lane addition

Relocate gas line

XXXXX

$___________

Old North Rd. repair

Relocate meter

XXXXX

$___________

New Street road repair

Relocate meter

XXXXX

$___________

Total

$___________

Net Total

$___________

FORM 5

SCHEDULE 2A: NET ACCUMULATED DEPRECIATION

Net Additions to Plant and Depreciation Expense 11/1/XX – 4/30/XX

Account Name

FERC/NARUC Account No.

Amount

Depreciation Rate

Depreciation Amount

Mains

XXXXX

$__________

X.XX%

$___________

Meters

XXXXX

$__________

X.XX%

$___________

Lines

XXXXX

$__________

X.XX%

$___________

TOTAL

$______(Schedule 2)

$___________

Semi-Annual Depreciation Expense

$___________

Accumulated Depreciation Reserve Change

Semi-Annual Depreciation Expense (above)

$(________________)

Retirements (Schedule 2)

$_________________

TOTAL

$_________________

15 DE Reg. 1623 (05/01/12)

2000 Water Regulations

2001 Minimum Standards Governing Service Provided By Public Water Companies (Docket 13 and 15)

26 Del. Admin. Code § 2001 Minimum Standards Governing Service Provided By Public Water Companies (Docket 13 and 15)

Public Service Commission

2001 Minimum Standards Governing Service Provided By Public Water Companies (Docket 13 and 15)

1.0 General

1.1 Authorization Of Rules

The Public Service Commission Law of Delaware vests in the Public Service Commission the authority to formulate standards for such water service and facilities as it deems necessary to carry out the provisions of this law. (26 Del.C. §209)

1.2 Application Of Rules

There are herein set forth those regulations which shall apply to any public water utility operating within the State of Delaware, under the jurisdiction of the Public Service Commission. These regulations shall become effective ninety (90) days after adoption by the Commission, and shall supersede Commission Order No. 101 dated January 10, 1952.

1.2.1 Purpose.These rules are promulgated to promote safe and adequate service to the public, to provide standards for uniform and reasonable practices by water utilities, and to outline the responsibility of the public in requesting and receiving service from the water utilities.

1.2.2 Duties Under Other Statutes. These regulations shall in no way relieve any utility from any of its duties under the laws of this State or regulations promulgated by other State or Federal agencies or authorities.

1.2.3 Exemption. If unreasonable hardship to a utility results from the application of any rule or standard herein prescribed, or if unreasonable difficulty is involved in compliance, application may be made to the Commission for temporary or permanent exemption from its requirements, provided that the utility shall submit with such application a full and complete statement of its reasons for such application for exemption. Any exemptions, or any applications for exemptions, will be entertained by the Commission upon due notice to the customers, and after a hearing.

1.2.4 Modification. The adoption of these regulations shall in no way preclude the Commission, upon complaint, upon its own motion, or upon the application of any utility, from altering or amending them, in whole or in part, or from requiring any other or additional equipment, facility, or standard, or from making such modifications with respect to the utility's application as may be necessary to meet exceptional conditions. Any modification shall be accomplished in accordance with the provisions of 29 Del.C. Ch. 64.

1.3 Definitions

The following words or terms, when used in these regulations, shall have the meaning indicated, unless the context otherwise requires:

1.3.1 Commission: The Public Service Commission of Delaware.

1.3.2 Customer: Any person, partnership, firm, association, corporation, or governmental agency being supplied with water by a water company.

1.3.3 Dwelling Unit: One or more rooms arranged for the use of one or more individuals as a single housekeeping unit, with cooking, living, sanitary and sleeping facilities.

1.3.4 Main: Any water pipe, owned, operated, or maintained by a water company, which is used for the transmission or distribution of water, excluding service pipes.

1.3.5 Meter: Without other qualifications, any device or instrument which is used by the utility in measuring the quantity of water service rendered to a customer for recording or billing purposes.

1.3.6 Premises: A tract of land or real estate, including buildings and other appurtenances thereon.

1.3.7 Service Pipe: The pipe which runs from the main to the customer's premises.

1.3.8 Utility: A water company subject to regulation by the Commission.

1.3.9 Water Plant: Equipment, stations, and property owned or used by a water company, used in its business operations to provide water service to its customers.

1.3.10 Shall: The use of the word "shall" in this regulation expresses a mandatory requirement.

1.3.11 Should: The use of the word "should" in this regulation expresses suggestion or guidance and is not mandatory.

1.3.12 Contribution In-Aid-of Construction ("CIAC") means cash, services, funds, property or other value received from State, municipal, or other governmental agencies, individuals, contractors, or others for the purpose of constructing or aiding in the construction of utility plant and which represent a permanent infusion of capital from sources other than utility bondholders or stockholders.

1.3.13 Advances For Construction Of Services ("Advances") means cash, services, funds, property or other value received by the utility which would be CIAC but for an agreement by the utility to refund in whole or in part the amount received so that the Advances initially represent a temporary infusion of capital from sources other than utility bondholders or stockholders.

1.3.14 Facilities Extension means the extension of the water utility’s Mains and appurtenances (“Facilities”) for the provision of water service. As used in this definition, “appurtenances” include valves, hydrants, pumps, sampling equipment and other miscellaneous items appurtenant to a Main extension.

1.3.15 New Services means the extension of pipe from the water utility’s Mains to the customer’s premises.

2.0 Records And Reports

2.1 Availability Of Records

All books, accounts, papers, records, and memoranda required by these rules or necessary for the administration thereof, shall be open and available for examination by the Commission or its authorized representatives at all times.

2.2 Retention Of Records

All books, accounts, papers, records, and memoranda required by these rules shall be preserved for a minimum period of three (3) years.

2.3 Location

All books, accounts, papers, records, and memoranda required by these rules shall be kept in an office within this State, and shall not be removed from this State, except upon such terms and conditions as may be prescribed by the Commission. This provision shall not apply if the utility is engaged in interstate commerce, whose accounts are kept at its principal office outside this State. However, such utility, when required by the Commission, shall furnish to same, certified copies of its books, accounts, papers, records, and memoranda relating to the business done by such public utility.

2.4 Information To Be Filed With The Commission

Each utility shall file with the Commission, and keep current, a copy of its approved tariff.

2.4.1 Rates.The tariff shall include each schedule of rates for service.

2.4.2 Rules.The tariff shall include the utility's rules and regulations, or terms and conditions describing the utility's policies and practices in rendering service, and in its relations with customers or prospective customers.

2.4.3 Bill Forms.Each utility shall file with the Commission a sample of each type of customer billing statement, which shall include the information normally shown on a customer's bill for service.

2.4.4 System Map(s). Each utility shall file with the Commission a map showing the utility's water system, scale 1" = 1 mile or less, e.g. 1" = 2000 feet. Such map shall be revised annually unless such revision is unnecessary in which event the utility shall notify the Commission that the map on file is current. The map should show:

2.4.4.1 the location of pumping stations, treatment plants, and sources of supply;

2.4.4.2 storage facilities;

2.4.4.3 mains 8 inches or larger;

2.4.4.4 service area.

2.4.5 Persons to Contact. Each utility shall file with the Commission and shall notify its customers upon request, of the name, title, business address, and telephone number of the person(s) who should be contacted in connection with the following areas of operation:

2.4.5.1 management;

2.4.5.2 customer relations (complaints and billing inquiries);

2.4.5.3 engineering and water quality;

2.4.5.4 meter tests and repairs;

2.4.5.5 emergencies during non-office hours and regular hours; and shall notify the Commission promptly of any changes.

2.4.6 Accident Notification. In the event of a fatal or serious accident, prompt notice shall be given to the Commission by telephone or telegraph, followed by a written report of such accident. A full report is also required when any serious property damage shall have been caused to the utility. These reports shall be treated confidentially per 26 Del.C. §213(b).

2.4.7 Reports of Service Interruption. Each utility shall file with the Commission a monthly report of any interruptions in service within ten (10) days after the end of any month in which an interruption occurred. Negative reports are also required after the end of any month in which no interruptions occurred. Reports shall include:

2.4.7.1 location and time of interruption;

2.4.7.2 time of restoration of service;

2.4.7.3 estimated number of customers affected;

2.4.7.4 when known, the cause for interruption.

2.4.7.4.1 Utilities shall make all possible efforts to re-establish service in the shortest time practicable with due regard to safety.

2.4.7.4.2 When service is interrupted for scheduled repairs or maintenance, such work should be done at a time which will cause the least inconvenience to customers. The customers who would be affected should be notified prior to the scheduled interruption.

2.4.7.4.3 If any interruption affects or would affect the service to any public fire protection device or department, the utility shall immediately notify the official responsible for fire protection.

2.4.8 Annual Reports. Each utility shall file an annual financial statement based upon the accounts set out in the Uniform System of Accounts, or such other requirement as prescribed by the Commission. This report shall be filed with the Commission on or before March 31st of the succeeding year for which the report covers.

2.5 Complaints

2.5.1 Each utility shall keep a record of each complaint received. The complaint record shall contain:

2.5.1.1 complainant's name, address, and telephone number;

2.5.1.2 nature of the complaint;

2.5.1.3 date complaint was received;

2.5.1.4 when, how, and by whom the complaint was handled;

2.5.1.5 disposition and findings of the complaint.

2.5.2 Resolution. All complaints should be handled promptly, courteously, and include a full investigation prior to any conclusion.

2.5.3 Disputes. No customer shall be disconnected when a dispute over a billing statement is under investigation.

2.5.3.1 No water company shall discontinue service because of non-payment while the company is investigating a customer's complaint about a bill, nor shall any customer's service be terminated for non-payment without Commission approval once the company has been notified that a formal complaint concerning a water bill has been filed with the Public Service Commission under the Commission's Rules of Practice and Procedure.

2.5.3.2 No notice of termination of service for non-payment may be sent to a customer during the investigation of a complaint by either the company or the Commission, and no additional deposit may be required for the continuation of service during the period of such investigation.

2.5.3.3 After the Commission or the company has completed its investigation of a customer's complaint concerning a bill, the customer shall be afforded a reasonable time, not less than twenty (20) days, to pay the bill as finally determined.

2.5.4 Definition. "Complaint" as used in this subsection shall be construed to mean any specific objection to charges or meter readings on the billing statement, facilities, practices, or services of a utility.

2.6 Meter Records

2.6.1 Meter reading sheets, cards, or records from which billing statements are prepared shall contain:

2.6.1.1 customer's name, address, and rate schedule;

2.6.1.2 meter identification number;

2.6.1.3 meter reading and date reading was made;

2.6.1.4 applicable water meter multiplier or constant;

2.6.1.5 estimated or actual reading.

2.6.2 Inventory Records. Each utility shall maintain records of each meter and metering device which will identify each as to its design, capacity, and application. Such identifying information may also include: manufacturer, number, type, size, capacity, multiplier, and/or constants.

2.6.3 History Records. Each utility shall maintain records for each meter and metering device which shall show the date of purchase, date of installation, date of removal from service, together with the location.

2.6.4 Testing Records.Each utility shall maintain test records on each meter, which shall include the following:

2.6.4.1 date of last test, and date and reason for current test;

2.6.4.2 meter reading at time of disconnection from customer's premises prior to any testing;

2.6.4.3 the accuracy before testing and after adjustment;

2.6.4.4 if testing is performed in conjunction with a standard meter, the utility shall retain all data taken to permit checking test methods andcalculations;

2.6.4.5 if a standard meter is used for accuracy calibration of customer meters, it will be checked and adjusted at least semi-annually.

3.0 Engineering

3.1 Authorization For Operation Or Construction

No individual, corporation, firm, partnership, association, company, cooperative, joint stock company or association, or any other form of business enterprise shall commence any construction of a water system for public use without having been granted a Certificate of Public Convenience and Necessity, and such other permits as may by required by law. System expansion, even within the certificated area, shall not commence without approval of the plans by the State Board of Health.

3.2 Water Plant Operation

The utility's water plant shall be constructed, installed, maintained, and operated in accordance with current engineering practices in the water industry, to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property. The entire water plant systems shall be free from sanitary defects. Distribution systems must be designed and operated for a continuous positive pressure.

3.2.1 Public Health. Water for domestic use must meet the State Health standards and the Environmental Protection Agency's minimum standards for water quality, as contained in the Federal Safe Drinking Water Act and its regulations. These standards set limits on the chemical, biological, and radiological nature of water. The utility shall be responsible for water quality up to the customer's facilities, i.e., up to the customer's pipe after the meter.

3.2.2 Sources of Supply.The well casings and vents shall be constructed and maintained to prevent contamination. Unused wells shall be capped and abandoned wells filled. The source of supply shall be:

3.2.2.1 free from pollution, unless subsequently purified by treatment;

3.2.2.2 adequate when considered with available storage to provide a continuous supply of water in sufficient quantity to accommodate system peak-day demand;

3.2.2.3 reasonably protected against contamination and unauthorized use.

3.2.3 Surface-Water. All surface-water supplies shall receive treatment prior to domestic use.

3.2.4 Ground-Water. All ground-water withdrawal points shall be located a "safe distance"* from sources of pollution., e.g., septic tanks, sewage disposal facilities, sewers, farm animals, fertilizers, and pesticides, unless adequate treatment is provided to render the water in compliance with the State Board of Health standards. All ground-water supplies should receive treatment prior to domestic use.

*Safe Distance - under the most adverse conditions no contamination or pollution would occur.

3.3 Storage

When storage is involved, maintenance must be performed at regularly scheduled intervals to protect against contamination, corrosion, or other deterioration.

3.3.1 Cathodic Protection. Cathodic protection should be used to combat corrosion in all underground steel reservoirs.

3.3.2 Reservoirs. Where fire protection is to be provided, reserve capacity for fire emergencies shall be adequate. The reservoir should be of sufficient size to not only provide for fire emergencies, but also to contain at least a 4-6 hour supply of peak-period water.

3.3.3 Maintenance. Reservoirs shall be drained, cleaned, and disinfected as often as necessary to maintain tank integrity and water quality.

3.3.3.1 Reservoir drains shall be valved and not connected to any sewer lines.

3.3.3.2 Manholes over entry shall be locked at all times except when maintenance is being performed.

3.4 Water Plant Inspection

3.4.1 Each utility must adopt and file with the Commission a program of inspection of its water plant in order to determine the necessity for replacement and repair. The frequency of the various inspections shall be based on the utility's experience and accepted good practice. Each utility shall keep sufficient records to give evidence of compliance with its inspection program.

3.4.2 Each utility shall have water samples obtained at random points within its system examined at regular intervals each year by competent personnel familiar with the sanitary examination procedures of water testing. Sanitary surveys may be made, upon application for same, by the State Board of Health. The system shall be operated in such manner to assure water test results will be in compliance with the State Board of Health's minimum standards on water quality.

3.5 Design And Construction

The design and construction of the system and the components thereof shall conform to the requirements of the State Health Department and the AWWA standards.

3.5.1 Railroad Crossings. Where the line crosses beneath a railroad, the line should be laid inside a culvert pipe or steel casing large enough to provide protection against external vibrations and loading.

3.5.2 Depth. All pipes shall be installed below the normal frost line or be otherwise protected to minimize the possibility of freezing and should have at least three (3) feet of cover.

3.5.3 Common Trenches. No pipe shall be placed in the same trench with a sewer or nonpotable water line.

When crossing, or where in close proximity, water lines shall be placed higher than sewer or nonpotable water lines or measures taken to protect the water supply from possible contamination.

3.5.4 Valves. The distribution system shall have sufficient valving so that areas may be isolated with a minimum number of customer services being affected during times of repairs or maintenance. When feasible, valves should be provided at intervals not to exceed one continuous block or 500 feet, whichever is greater, except where a dead-end run is not intended to serve any intervening customers.

3.5.4.1 Valves shall be partially operated periodically to ensure their performance.

3.5.4.2 Suitable check valves, or a reduced pressure backflow prevention valve should, wherever feasible, be installed between the meter and the customer's line. The utility shall install such backflow prevention devices at the customer's expense.

3.5.5 Dead-Ends. The utility should design its distribution system in a grid or looping manner to avoid dead-ends in its mains. Where dead-ends cannot be avoided, the dead-end line must be flushed as often as necessary to prevent poor quality water and the build-up of silt and sediment, as well as the decomposition of accumulated deposits. A schedule of such flushing of system mains shall be filed with the Commission and revised annually.

3.5.6 Pipe Detection.All underground piping installed subsequent to the effective date of these regulations, should be detectable by means of conductive or inductive testing. Non-conductive pipe or sections should be installed with a tracer wire providing electrical continuity throughout the system, thereby permitting inductive or conductive detection. Whatever method is used, the utility shall make provision to enable it to readily determine the location of all underground facilities which it owns or maintains.

3.5.7 Cross Connections.Any physical connection between the distribution system of a public water supply and that of any other water supply, must comply with the regulations of the Division of Public Health, of the Department of Health and Social Services.

3.5.8 Corrosion. The joining of dissimilar metals breeds a corrosive atmosphere. Where it is impossible to avoid this situation, the joint, flange, valve, sleeve, etc., should be electrically isolated from the system.

3.5.9 Unbalanced Pressure. All tees, bends, caps, plugs, hydrants, or other fittings that change the direction of flow should be blocked or anchored to prevent pipe movement caused by surges, water hammer, or unbalanced pressure which would result in water contamination from disjointed pipe(s).

3.5.10 Minimum Pipe Sizes.The distribution system piping should be at least 6 inches in size, except where good engineering practice, such as the provision of short dead-ends for fire protection and the like, permits the use of smaller diameters.

3.5.11 Pressure. The distribution system and piping shall be designed in such a manner that the pressure at a customer's service connection shall be:

3.5.11.1 not less than 25 psig;

3.5.11.2 not more than 100 psig.

3.5.12 Fire Protection on New Systems. As to any water system installed or extended after January 1, 1988, no utility shall charge for or hold itself out as providing fire protection in an area where it does not provide from each hydrant, operating independently, a flow in excess of five hundred (500) gallons per minute with a minimum of twenty (20) pounds per square inch (PSI) residual pressure remaining for a duration of at least two (2) hours. Such flow must be in addition to average domestic water service demand on the system.

3.5.12.1 Flow tests of all areas in which fire protection is provided, within a water utility's service territory, shall be conducted equally over an initial three (3) year period and updated every five (5) years thereafter with all information on such tests provided to the Public Service Commission. In addition, flow tests will not include every hydrant in such areas but rather provide representative samplings based on sound engineering determination.

3.5.12.2 All hydrants shall be inspected and operated at least every three (3) years and after each use within five (5) working days upon notification to the utility. Particular attention shall be paid to the general condition of the hydrant to include:

3.5.12.2.1 caps present and free turning;

3.5.12.2.2 threads in good condition;

3.5.12.2.3 hydrant operates properly;

3.5.12.2.4 hydrant drains properly;

3.5.12.2.5 outlets facing proper direction.

3.5.12.3 All test records shall be maintained by the utility for at least five (5) years and shall be available for public inspection.

3.5.13 Fire Protection on Existing Systems. As of January 1, 1988, all water systems with five (5) hydrants shall, within one hundred eighty (180) days of that date, file with the Commission:

3.5.13.1 Test results demonstrating that, on the basis of representative sampling based upon sound engineering determination, there is available at each hydrant a flow in excess of five hundred (500) gallons per minute as required by Section 3.5.12 above; or

3.5.13.2 An engineering plan, together with cost estimates, for bringing the flows at all fire hydrants to the level set forth in Section 3.5.12 above within a period of time as the utility may deem feasible; or

3.5.13.3 An application, pursuant to 26 Del.C. §203(c) to abandon the provision of fire protection service.

3.6 Service Pipe

The utility shall furnish, install, and maintain the service line and appurtenances thereto, up to the point where the water enters facilities or pipes owned and maintained by the customer.

The customer shall be responsible for furnishing, installing, and maintaining the service line from the pipe owned and maintained by the utility to the place of consumption on his premises.

3.6.1 Curb Stop. Curb stops are for the exclusive use of the utility in controlling the water supply to individual customers and should not be located on the customer's property.

3.6.2 Customer Valve. The control of the water supply by the customer shall be by means of a separate valve, located on the downstream side of the meter.

There should also be a suitable valve installed in the customer's system to permit full draining thereof.

3.6.3 Pressure Regulation. Pressure regulating devices or valves shall be used on all service lines to reduce the water pressure to 25-100 psig., for domestic use unless the use of such device is waived by the customer.

3.7 Pressure Requirement Exceptions

3.7.1 Water pressure outside the limits specified will not be considered a noncompliance item when the variations:

3.7.1.1 are infrequent fluctuations not exceeding five (5) minutes in duration;

3.7.1.2 arise from service interruptions;

3.7.1.3 are from causes beyond the control of the utility.

3.7.2 Pressure Gauge. Each distribution system serving 1000 or more customers should have at least one recording pressure gauge in continuous operation (24 hour recording) at some fixed point near the center of the system. These recording charts shall be preserved and available for inspection.

3.7.3 Pressure Surveys. Each utility having more than 100 customers shall have at least one portable pressure recording gauge.

3.7.3.1 Each utility which, due to topography, operates a system with varying pressures shall make periodic pressure measurements at various locations within the system in order to determine that the system is remaining within the limits of 3.5.11.

3.7.3.2 These measurements should be taken at the customer's service connection. If no outlet is available, then the measurement may be made at the nearest available outlet.

3.7.4 Survey Records. Pressure survey records shall be retained and available for inspection. Each pressure record shall include:

3.7.4.1 the maximum and minimum pressure;

3.7.4.2 the location where the survey took place;

3.7.4.3 the time and date of the survey, and by whom the survey was taken.

3.8 Contributions In-aid-of Construction And Advances

A utility shall require CIAC for Facilities Extensions to the extent provided in §§ 3.8.1 and 3.8.2 herein below. Nothing contained herein shall prevent a utility from requiring CIAC, or Advances, or neither, for the provision of New Services. Nothing herein shall prevent any utility from paying for, and including in its rate base, the costs of New Services.

3.8.1 CIAC Requirement For Facilities Extensions

A utility shall require a CIAC when the request for a Facilities Extension will require the installation of pipe and/or associated utility plant. All charges henceforth to contractors, builders, developers, municipalities, homeowners, or other project sponsors, seeking the construction of water Facilities from a water utility company shall be in the form of a CIAC to be paid to the water utility as Category 1A, 1B and Category 2 costs, as computed under §§ 3.8.2 and 3.8.6, subject to true-up under § 3.8.8.

3.8.2 Computation Of CIAC

Category 1A Costs.

All on-site Facilities costs that are directly assignable to a specific project are Category 1A costs and shall be designated by the utility and paid for by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as CIAC, with no refunds. These costs include such items as Mains, hydrants, treatment plants, wells, pump stations, storage facilities, and shall include any other items that are necessary for the provision of utility water service. The cost of a Facilities Extension from the furthest point of the project site up to a point 100 feet beyond the boundary of the project (in the direction of the utility’s existing Main) shall be considered a Category 1A Cost.

Category 1B Costs.

All off-site Facilities costs that are directly assignable to a specific project from such point 100 feet beyond the boundary of the project and continuing to the utility’s existing Main are Category 1B Costs and shall be designated by the utility and funded by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as a CIAC not subject to refund. These costs include such items as Mains, hydrants, treatment plants, wells, pump stations, storage facilities, and shall include any other items that are necessary for the provision of utility water service. Notwithstanding the foregoing, Category 1B Costs shall not include, and the utility shall be entitled to pay for and include in its rate base, any additional Facilities costs elected to be incurred by the utility in connection with the Facilities Extension for company betterment. In determining whether Category 1B Costs are directly assignable to a project, or elected as company betterment, the CIAC shall be calculated based on the cost of installing Mains using a minimum of 8 inch diameter pipe, provided, however, that where Mains of a larger diameter are required by applicable laws, building or fire codes, or engineering standards to provide water service to the project on a stand-alone basis, the CIAC shall be calculated based on the cost of installing Mains using such larger diameter pipe.

Category 2 Costs.

Category 2 Costs refer to transmission, supply, treatment and/or other utility, plant costs that are not directly assignable to a specific project or where the Category 1 costs have not included sufficient direct costs for transmission, supply, treatment, and/or other utility plant costs to supply water to the project. The contractor, builder, developer, municipality, homeowner or other project sponsor shall pay $1,500 per single family residential water meter service for their portion of transmission, supply, treatment and/or other utility plant costs made available by the water utility. These costs will be contributed by the contractor, builder, developer, municipality, homeowner, or other project sponsor, as CIAC, with no refunds. Within one hundred and twenty (120) days following the effective date of these regulations, each water utility shall file with the Commission proposed tariff pages containing the charges it will impose for Category 2 costs for single family residential and other types of metered water service. Such charges shall be determined based on meter size or another objective factor. The utility may account for such amounts by applying such amounts to pay for or offset any capital costs, including new and/or replacement plant, whether incurred in connection with the project or otherwise. The utility shall be entitled to hold amounts received as Category 2 Costs, and defer accounting for them as CIAC, until such amounts are actually used to fund capital improvements, at which time the utility shall be entitled to account for the Category 2 Costs as CIAC to the extent it is able to make offsetting entries to the utility’s plant accounts.

3.8.3 Advances

An Advance may consist of the following components:

3.8.3.1 An amount equal to the entire estimated cost (including reasonable overhead costs) of construction; plus

3.8.3.2 Any applicable Federal income taxes, and applicable State taxes, that may be generated to the account of the utility as a result of the Advance.

3.8.4 Refunds Of Advances

By April 30th of each year, the utility will refund a portion of the Advance representing each additional customer connected during the previous calendar year based on a standard formula developed by the utility (the "net refund amount") plus the tax savings, if any, which the utility receives from deducting the Advance refund payment (the sum of which is referred to as the "gross refund amount"). In no event shall the total amount refunded by a utility (the sum of the gross refund amounts) exceed the amount received by such utility as an Advance (as finally determined by the utility after compliance with Rule 3.8.8). At the end of the negotiated refund period, no further refunds or payments will be made. If, at the end of such refund period, an Advance has not been fully refunded, the remaining un-refunded Advance will be considered a CIAC and will be treated for accounting and ratemaking purposes as a CIAC. The utility and the person(s) making the Advance shall determine the period in which the refund of the Advance may occur, but such period shall not exceed five (5) years.

3.8.5 Ratemaking Treatment Of Advances

An Advance will be considered as a non-taxable transaction for ratemaking purposes since the income taxes, if required, will be provided by the person(s) making the Advance.

3.8.6 Gross Up Of CIAC

A CIAC will consist of an amount equal to the entire estimated cost, including the utility’s standard overhead costs, of constructing the Facilities Extension. If any portion of property contributed by the contractor, builder, developer, municipality, homeowner, or other project sponsor is deemed taxable income to the utility, the utility shall be permitted to gross up the amount of the CIAC to include such tax liability.

3.8.7 Ratemaking Treatment Of CIAC

The Federal and State income taxes, if required, associated with the CIAC and paid by the utility receiving the CIAC, may be added to rate base, at which time the utility will have an opportunity to earn a fair return on this amount.

3.8.8 True-Up Of Contributions And Advances

Where the estimated amount of the CIAC or Advance exceeds the finally determined cost of the Facilities Extension or New Services, that excess amount shall be returned to the person making the CIAC or Advance.

Where the estimated amount of the CIAC or Advance falls short of the finally determined cost of the Facilities Extension or New Services, that shortage amount shall be paid to the utility by the person making the CIAC or Advance.

3.8.9 Miscellaneous; Class A Water Utilities Affected; Prospective Application; Reopening Of Docket

3.8.9.1 The regulations governing CIAC and Advances shall:

3.8.9.1.1 apply only to Class A Water Utilities, and

3.8.9.1.2 apply prospectively and therefore shall not affect or apply to circumstances where the water utility has already entered into a water service agreement with the contractor, builder, developer, municipality, homeowner, or other person, regarding the construction of water facilities.

3.8.9.1.3 PSC Regulation Docket 15 shall be reopened two years from the effective date of the revised regulations governing CIAC and Advances to review the extension methodology and to assess its effectiveness, and the CIAC computation and costs categories. After such review and assessment, the Commission may, if deemed appropriate, consider further modifications.

3.9 Temporary Water Service

When temporary service is requested, the utility may require that the customer bear all the cost of installation and removal of the service in excess of any salvage to be realized. Any such agreement shall be documented.

3.10 Meters

The utility shall furnish, install, and maintain all metering devices used for recording or billing purposes. The applicant shall furnish, install, and maintain the required piping, valves, etc., for the meter setting.

Where feasible, all measuring devices used for billing purposes shall be installed to permit readings exterior to the premises to which service is supplied as per Title 26 Del.C. §211(d).

3.10.1 Meter Installation. The meter shall be watertight and positioned in a horizontal plane with upstream and downstream shut-off valves allowing for adequate maintenance or removal. Meters shall be reasonably protected against frost, tampering, and mechanical damage. Meters shall be reasonably accessible for service, inspection, and reading. They should not be installed in such a manner that would pose an obstacle or hazard to customers or interfere with public safety.

3.10.1.1 As regards small meters, such as those utilized for residential service, no meter shall be placed in service if it registers less than ninety percent (90%) of the water passed through it at the minimum test flow, or over-registers or under-registers more than two percent (2%) at the other test flows. As regards large meters, such as compound and propeller types, the accuracy limits for new and repaired meters shall be as provided in AWWA Manual No. M-6, as amended or modified from time to time. When any meter is removed from service it must be repaired, if necessary, so that it conforms to these registration tolerances prior to being sealed and placed back in service. New meters shall be tested and adjusted to these tolerances or certified as to their accuracy by the manufacturer prior to installation.

3.10.1.2 All water sold by a utility shall be on the basis of meter measurement, unless specifically permitted by this Commission. Wherever practicable, the use of water within the utility itself, or by administrative units associated with it, shall be metered.

3.10.2 Meter Condition. No meter shall be installed which is mechanically defective, has an incorrect correction factor, or which does not meet the above registration requirements.

3.10.2.1 The capacity of the meter and its index mechanism should be consistent with the customer's water needs as determined by the utility.

4.0 Inspections And Tests

4.1 Right Of Access

The authorized agents or employees of the utility shall have the right of reasonable access to the premises supplied by their service, at reasonable hours, for the purpose of reading meters, examining fixtures and pipes, observing the manner of water usage, and for any other purpose which is proper and necessary in the conduct of the utility's business.

4.1.1 Employee Identification. Every employee, whose duties require him to enter the customer's premises, should wear a distinguished uniform, or other insignia identifying him as an employee of the utility. The minimum requirement shall be a badge or identification card, carried on his person, certifying him as an employee of the utility authorized to enter the premises to perform necessary inspections or work.

4.1.2 Unreasonable Refusal to Right of Access. Access shall not be unreasonably refused by the customer, and continued unreasonable refusal shall be grounds for termination of service.

4.1.3 Permission for Right of Access. Except in emergency situations, company agents or representatives should not enter the customer's premises without having been freely granted such access, on each occurrence, by the customer or his agent, to include a responsible member of the customer's family.

4.2 Meter Shop

Each meter shop maintained or designated by a utility where meters may be inspected, tested, or repaired, shall be open for inspection by authorized representatives of the Commission at reasonable times.

4.2.1 Accuracy of Test Standards.The accuracy of the testing equipment and each standard shall be such that the overall error will not exceed 0.3%.

4.2.2 Care in Handling. Extreme care should be exercised in the use and handling of standards to assure that their accuracy is not disturbed.

4.2.2.1 Each standard shall be accompanied by a certificate or calibration duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.

4.2.3 Calibrated Tank. At least one calibrated tank for volumetric measurement or a tank mounted upon scales for weight measurement of sufficient capacity to insure an acceptable determination of the utility's meter accuracy should be used. The testing of the tank and scales, used as a working standard for measuring meter accuracy, should be performed at a minimum as follows:

4.2.3.1 Volumetric tank.........Once every 5 years

4.2.3.2 Scales..................Once in every 12 mos.

4.2.4 Each utility shall have in place, and implement, a program for the testing of its meters to ensure their accuracy. Such program shall consist of either:

4.2.4.1 The periodic testing of meters at intervals no longer than provided in the following schedule:

4.2.4.1.1 5/8 inch and 3/4 inch:

Once every 15 years

4.2.4.1.2 1 inch and 1-1/2 inch:

Once every 10 years

4.2.4.1.3 2 inch, 3 inch, and 4 inch:

Once every 3 years

4.2.4.1.4 6 inches and larger:

Once every year

4.2.4.2 The periodic testing of a random sampling of particularly-grouped meters under a meter testing plan submitted by the utility and specifically approved by the Commission. Such a plan may apply to the testing of all sizes of meters or meters of a particular size. The sampling procedures in any such plan shall be sufficient to ensure confidence in the accuracy of the meters included in the group represented by the sample. With such plan, the utility shall submit sufficient information and data to establish the ability of the sampling procedure to establish the accuracy of the utility's meters. The results of testing under any such approved plans shall be available to the Commission.

4.2.5 Testing in General. The test of any unit of metering equipment shall consist of a comparison of its accuracy with the accuracy of a standard. All meters and/or associated devices tested shall be adjusted as closely as practicable to the condition of zero error.

All prescribed tolerances are to be interpreted as maximum permissible variations from the condition of zero error and no advantage of them shall be taken when making adjustments.

4.2.6 Tests to Determine Registration Error. For determination of minimum test flow and other normal test flows including the maximum, the utilities should adopt as their guide the appropriate standard specifications of the American Water Works Association for the various types and sizes of meters.

4.2.6.1 Meters shall be tested at the following three flow rates:

4.2.6.1.1 Minimum test flow;

4.2.6.1.2 Approximately 10% of the maximum normal flow;

4.2.6.1.3 Approximately 50% of the maximum normal flow, or at the maximum flow available at normal system pressure.

4.2.6.2 The formula used to determine the percentage error in registration is:

(Vol. by meter) - (Vol. by standard)

% error = 100 x (Vol. by standard)

where a positive percentage indicates a fast meter, while a negative indicates a slow meter.

4.2.7 Registration Error vs. Billing Adjustments. The error registration of a meter for billing adjustments shall be the arithmetic average of the error in registration at the following two rates of flow:

4.2.7.1 Approximately 10% of the maximum normal flow;

4.2.7.2 Approximately 50% of the maximum normal flow, or at maximum flow available at normal system pressure.

4.2.7.2.1 The derived meter error shall be used to calculate the correct consumption of water by applying the derived meter error to the volume of water consumption indicated by the meter. If the meter is fast or slow, then the volume of water indicated by the meter registration shall be reduced or increased by applying the calculated error in registration. Errors in registration shall be corrected as promptly as conveniently practicable.

4.2.8 Request for Meter Test.Upon the request by the customer, the utility shall make a test of the accuracy of the registration of the meter serving his premises.

4.2.8.1 If the meter is found to be within two percent (2%) of zero error, the customer may be billed for the testing, the actual costs not to exceed $25.00. If the meter is found to be greater than two percent (2%) of zero error, the customer shall not be charged for testing, unless the utility is authorized to charge different amounts by virtue of an approved tariff revision directed to meter testing rates.

4.2.8.2 The customer, or his representative, may be present when the meter is tested. In either case, a written report of the results of the test shall be made to the customer within a reasonable time after the completion of the test. A record of the report, along with the complete record of the test, shall be kept on file at the utility's office for at least three (3) years.

5.0 Operation

5.1 System Safety Program

Each utility shall exercise reasonable care to reduce the hazards to which its employees, customers, and the general public may be subjected. A safety program should be adopted by each utility, fitted to the size and type of its operations.

5.1.1 "Miss Utility". It would be in the best interest of all water distribution operators to belong to and participate in the "Miss Utility" program. Such participation should result in lowering third-party damage to other utilities as well as their own.

5.1.2 Promote Safe Work Methods. Each utility should require its employees to use suitable tools and equipment in order that they may perform their work in a safe manner. The utility's employees who are subject to the hazards of asphyxiation, chemical handling, electrical shock, or drowning in the course of performing their work should be properly instructed in the accepted methods of artificial respiration, including CPR (cardio-pulmonary resuscitation) if available.

6.0 Customer Relations

6.1 Application For Service

All applications for service should be made, in writing, for the protection of the utility and the customer. It is the position of the Commission that, to the maximum extent possible, the customer should be the individual or entity responsible for payment for such service, therefore, service shall not be refused on the basis that the applicant is not the owner of the premises.

6.1.1 Termination of Service. When a customer desires to have his service terminated or suspended, he shall notify the utility and such notification should be in writing.

6.1.2 Rate Schedules. Each utility shall assist the customer or applicant in selecting the most economical rate schedule.

6.1.3 Customer Notification. Customers affected by a change in rates or service schedule classification shall be notified by the utility, as provided by 26 Del.C. §304.

6.1.4 Tariff Notice. Each utility shall keep in each office of the utility where applications are received, a copy of its currently approved tariff available for public inspection at any reasonable time.

6.1.5 Meter Reading. Every customer served by a water utility shall be informed of the method of meter reading.

6.1.6 Maps/Records. Each utility shall maintain up-to-date maps, plans, or records of its transmission and/or distribution systems, with such other information as may be necessary to advise its customers, or applicants, and others entitled to the information, as to the facilities available for serving customers within its service area.

6.1.7 Deposits.Each utility may require from any applicant or customer a reasonable deposit which will be applied against any unpaid balance due the utility for service at the time service is terminated.

6.1.7.1 If the utility has a deposit at the time service is terminated, then the deposit, plus accrued interest if applicable, less any amount owed by the customer for service, must be returned to that customer, whenever possible.

6.1.7.2 The deposit required by the utility shall not be more than the estimated service charge for two (2) consecutive billing periods.

6.1.7.3 If requested by the applicant or customer, the utility shall provide means whereby a required deposit of $35.00 or more may be paid through installments over at least two (2) billing periods.

6.1.7.4 Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means whereby a depositor may acquire his deposit if the receipt is lost.

6.1.7.5 The utility shall keep a record of all such deposits to include the depositor's name and address, the date and amount of deposit, and other information pertinent to each transaction involving the deposit.

6.1.7.6 A record of each unclaimed deposit must be maintained for at least seven (7) years, during which time the utility shall make reasonable efforts to return the deposit. After seven (7) years, all unclaimed deposits, together with any accrued interest, shall be credited to an appropriate account to include where appropriate, the State of Delaware (under applicable Escheat Law).

6.1.8 Interest on Deposits. When a utility's tariff requires or permits the collection of a deposit from customers, the utility shall pay interest on all such deposits at the rate of six percent (6%) annual simple interest. Interest shall be computed from the date of receipt of the deposit by the utility.

6.1.8.1 Interest on deposits shall be credited to the account of the depositor annually, at the time the deposit is returned, or when service is terminated, whichever is sooner.

6.1.8.2 Deposits shall cease to draw interest on the date service is terminated, on the date the deposit is returned, or on the date that notice is sent to the depositor's last known address that the deposit is no longer required.

6.2 Billing Statements

Any billing statement shall include: the previous meter reading, as well as the current meter reading covering the period for which the billing is rendered; the date on which the meter was read; the amount of consumption for the billing period; the gross and/or net cash amount of the bill; the date by which the customer must pay the bill in order to benefit from any applicable discount or to avoid any penalty.

6.2.1 Rate Schedule. The applicable rate schedule or identification of the applicable rate schedule shall be reflected on the billing statement. If the actual rates are not shown, the bill shall carry a statement to the effect that, upon request, the applicable rate schedule will be made available for examination.

6.2.2 Additional Information. Any conversions from meter reading units to billing units, any calculations to determine billing units from any other recording devices, or other factors used in determining the bill, must also be presented on or along with the billing statement.

6.2.3 Estimated Bills.No more than two (2) consecutive billing statements may be estimated. Estimated bills shall be made by averaging the amount of water registered over corresponding periods in previous years, and adjusting for any known changes in the customer's usage.

6.3 Billing Statement Adjustment

Billing adjustments due to fast or slow meters shall be calculated on the premise that the meter should be 100% accurate. For the purpose of a billing adjustment, the error in registration of the meter shall be calculated and applied as specified in 4.2.6 and 4.2.7.

6.3.1 Fast Meters. Whenever a meter is tested and found to over-register more than two percent (2%), or such different percentage as prescribed in 3.10.1.1, the utility shall recalculate the bills for service for the last customer of record receiving service through the meter, and shall make an appropriate refund. The refund shall be for the period that the customer received service through the meter, but no longer than the periods established below:

6.3.1.1 If the date of error is known, or can be developed, the adjustment shall start from that time;

6.3.1.2 If the date of error is not known or cannot be developed, it shall be assumed that the over-registration existed for at least three (3) years or a period equal to one-half of the time since the meter was last tested, whichever is less.

6.3.2 Slow Meters. Whenever a meter is tested and found to under-register more than two percent (2%), or such different percentage as described in 3.10.1.1, the utility may bill the customer the unbilled error for a period of not more than twelve (12) months, unless the meter has been tested within that twelve (12) month period, in which event the utility may bill the customer the unbilled error for the period since the meter was last tested. If the amount of under-registration is less than $5.00, the utility shall not adjust the bill.

6.3.3 Stopped Meters. Whenever a meter is stopped and is unable to be tested, an estimated bill shall be made according to 6.2.3.

6.3.4 Overcharge Adjustment. When a customer has been overcharged as the result of an incorrect estimated meter reading, incorrect rate schedule application, incorrect meter connection, or other similar reasons, the amount of overcharge shall either be refunded or credited to the customer's account. Refunds less than $1.00 shall be credited to the customer's account. When the overcharge resulted from an incorrect meter reading, the amount of overcharge will automatically be reflected in a subsequent billing based on a correct meter reading.

6.3.5 Undercharge Adjustment. When a customer has been undercharged as a result of an incorrect meter reading, incorrect rate schedule application, incorrect meter connection, stopped meter, or other similar reasons, the amount of the undercharge may be billed to the customer. The utility, however, may deny service for non-payment for only that portion of such undercharge applicable to the twelve (12) months immediately prior to the discovery of such undercharge, unless otherwise authorized by the Commission.

6.4 Denial Of Service Without Notice

The utility may discontinue service without notice for any of the reasons cited below, and service may not be restored until the cause for disconnection has been corrected.

A reasonable charge may be required by the utility, if allowed by tariff, for restoring service and also from customers who have been disconnected for unauthorized use of water. A customer whose service was disconnected or interrupted as the result of damage caused by that customer, or his agents, to the utility's equipment, may be charged the actual cost for repairs necessitated to reconnect the service.

6.4.1 Hazardous Condition. Service may be discontinued without notice for a condition on the customer's premises reasonably determined by the utility to be hazardous.

6.4.2 Adverse Effect on Service. Service may be discontinued without notice when the customer's use of equipment is in such a manner as to adversely affect the utility's equipment, or its service to other customers.

6.4.3 Unauthorized Use of Service. Service may be discontinued without notice for any unauthorized use of the utility's service by any method, including diversion of service to bypass a meter, as well as unauthorized resale of water by a customer.

6.5 Denial Of Service Requiring Notice

The utility may deny service for any of the following reasons listed below, provided the utility has notified the customer of its intent to deny service and has allowed the customer a reasonable period of time in which to correct or remove the cause for service denial. When service has been disconnected for any of the following reasons, a charge may be made for restoring service. Such reconnection charge shall not exceed five dollars ($5.00), unless the utility's tariff on file with the Commission indicates otherwise.

6.5.1 Non-Compliance With Rules. Service may be discontinued with notice for a violation of or for non-compliance with the Commission's Minimum Standards Governing Service Provided by Public Water Companies, or for a violation of or non-compliance with the utility's tariffs on file with the Commission, or state, county, and municipal ordinances.

6.5.2 Contractual Obligations.Service may be discontinued with notice for failure of the customer to fulfill his contractual obligations for service or facilities.

6.5.3 Access Refusal. Service may be discontinued with notice for failure on the part of the customer to permit the utility's agents or representatives to have reasonable access to its equipment, to include unreasonable refusal of entry for meter reading purposes.

6.5.4 Non-Payment of Bill. Service may be discontinued with notice for non-payment of bill for service provided that:

6.5.4.1 the utility has made a reasonable attempt to effect collection;

6.5.4.2 non-payment resulted and no bona fide dispute exists under Section 2.5.2.

6.5.4.2.1 In the event of termination for non-payment, the utility shall send the customer written notice that he has at least five (5) working dates in which to make settlement or have his service disconnected. Service shall not be discontinued on any day preceding a holiday, or other non-working day, or in violation of 26 Del.C. §117.

6.5.4.2.2 While water companies are not precluded from terminating service for non-payment of water bills, it is the policy of the Public Service Commission that such termination of essential services, such as water service, should be avoided whenever possible and, to this end, each regulated water utility is encouraged to permit customers to make installment payments on delinquent bills when the cash flow position of the company will not be seriously injured thereby.

6.5.4.2.3 Prior to termination of service for non-payment to a multi-dwelling or non-residential unit, such as an apartment house, condominium or shopping plaza, where service is provided through a master meter or where the billing address is other than the dwelling to which service is being provided, such as a rental unit where the water bill is paid by the owner or his agent rather than by the occupant, the company shall make a good faith effort to notify the occupant(s) of the impending termination in sufficient time to permit the occupant(s) to avoid termination by making payment or arrangements for payment in a manner satisfactory to the company. The company shall keep, for a period of one year from actual termination, a record of its attempts to notify the occupant(s) of such dwelling or non-residential unit(s) prior to termination for non-payment.

6.5.5 Failure to Provide Required Deposit. Service may be discontinued with notice for failure on the part of the customer to provide the utility with a deposit, when required, under tariffs filed with the Commission.

6.5.6 Non-Compliance with Service Conditions. Service may be discontinued with notice for failure on the part of the customer to furnish such service equipment, permits, certificates, or rights-of-way as shall have been specified by the utility and agreed to by the applicant or customer as a condition to obtaining service, or in the event such equipment or permissions are withdrawn or terminated.

6.5.7 Waste of Water. Service may be discontinued with notice for the willful waste of water by the customer which includes the unnecessary or excessive use of water.

6.5.7.1 The customer is responsible for maintaining his portion of the service pipe and all piping and fixtures on his premises, in such a manner that any leakage would be considered negligible. If the leakage becomes excessive and repairs are not made promptly, then this leakage may be treated as a willful waste of water.

6.6 Insufficient Reasons For Denial Of Service

The following examples shall not constitute sufficient cause to refuse service or discontinue service to an applicant or customer:

6.6.1 For failure on the part of a prior customer to pay for service rendered to him at the premises requested to be served;

6.6.2 For failure to pay for merchandise purchased from the utility;

6.6.3 For failure to pay for any other public utility service, excepting jobbing or repair work done on the customer's premises for his account.

6.6.4 For failure to pay for a different class of service. Used here, there shall be considered two (2) classes of service; residential and non-residential;

6.6.5 For failure to pay the bill of another party as guarantor thereof.

6.7 Responsibility Of Utility Regarding Disconnection Of Service

The utility shall not be liable for any property damage or inconvenience suffered by the customer as the result of the discontinuance of service where such discontinuance is permitted by these rules or tariffs filed with this Commission.

6.7.1 Second Party Notification. Each water utility shall maintain a second party termination notice list. Each customer shall be offered the opportunity to designate a second party to be notified by the utility prior to termination of service for non-payment of a bill. No water utility shall be required to give notice to any second party, unless and until the second party has notified the utility, in writing, of willingness to accept such notice. By accepting second party status, the person to be so notified shall not incur any obligation whatsoever to the utility.

6.7.1.1 When a customer has designated a second party to be notified and the second party has indicated to the company willingness to accept such notice, the utility shall not, unless otherwise ordered by the Commission, terminate service to the customer for non-payment until a period of not less than five (5) days after giving oral or written notice to the second party of intent to terminate the customer's service.

6.7.1.2 The customer designating a second party to receive notification of intent to terminate service for non-payment, assumes the responsibility for providing the utility with current and accurate information as to the name, address, and telephone number of the designated second party. The utility shall incur no liability whatsoever for inaccurate or non-current information provided by the customer designating such second party to be notified.

6.7.1.3 Notification of the availability of such second party notice shall be given to each customer.

6.8 Restrictions/Curtailments On Water Usage

6.8.1 If a utility finds that it is necessary to curtail the use of water, it shall notify its customers and give the Commission written notice prior to effecting such restriction. Such notifications shall include:

6.8.1.1 The reason for the restriction;

6.8.1.2 The nature and extent of such restriction, i.e., outdoor water usage, class(es) affected, etc.;

6.8.1.3 The date such restriction will take effect;

6.8.1.4 The probable date such restriction may be terminated.

If the customer fails to comply with such curtailment on the use of water, service may be denied to that customer provided that he has been given notice, and a copy of such notice has been sent to the Commission.

6.8.2 Restrictions on Outdoor Use. The utility may impose reasonable curtailments on the outdoor use of water during periods of supply shortage, excessive demand, or other difficulty which jeopardizes the supply of water to any group of customers.

6.8.3 Restrictions on Large-Use Customers. The utility may impose curtailments on the use of water by customers who use large quantities of water and, thereby, create conditions which would hinder the utility's providing adequate service to that customer or other customers.

Revised:

Sections 6.1.8 and 6.1.8(a) by Order No. 2818, dated June 1, 1987 (Regulation Docket No. 13).
Sections 3.5.12 and 3.5.13 were revised and added, respectively, by Order No. 2888, dated October 27, 1987 (Regulation Docket No. 18), effective January 1, 1988.
Sections 1.3.12; 1.3.13; 3.8.1; 3.8.2; 3.8.3; 3.8.4; 3.8.5; 3.8.6; 3.8.7 and 3.8.8 added and 3.8 amended by Order No. 2928, dated March 15, 1988 (Regulation Docket No. 15), effective April 15, 1988.
Sections 1.2.12, 1.3.13, 3.8, 3.8.1, 3.8.2, 3.8.3, 3.8.4, 3.8.5, 3.8.6, 3.8.7, 3.8.8 by Order No. 4465, dated April 8, 1997 (Regulation Docket No. 15), effective March 8, 1997.
Section 4.2.4 by Order No. 5847, dated December 11, 2001 (Regulation Docket No. 13), effective January 10, 2002.
Sections 1.3.12, 1.3.13, 1.3.14, 1.3.15, 3.8, 3.8.1, 3.8.2, 3.8.3, 3.8.4, 3.8.5, 3.8.6, 3.8.7, 3.8.8, 3.8.9 by Order No. 6873, dated March 14, 2006 (Regulation Docket No. 15), effective April 10, 2006.

5 DE Reg. 1414 (01/01/02)

2002 Regulations Governing Certificates of Public Convenience and Necessity for Water Utilities

26 Del. Admin. Code § 2002-1.0 Authority and Scope of Regulations

1.1 These regulations shall govern the process: for a person or entity (as described in 26 Del.C. §203C(a)) to obtain a Certificate of Public Convenience and Necessity to begin operation as a water utility; and for a water utility to obtain a Certificate of Public Convenience and Necessity to extend, expand, or enlarge its operations, business, or facilities beyond its then certificated service territory. These regulations also govern, in conjunction with the provisions of 26 Del.C. §203C, how the Commission administers, supervises, and revokes any such Certificate of Public Convenience and Necessity previously granted to a water utility.

1.2 These regulations are enacted pursuant to 26 Del.C. §§203C and 209(a).

1.3 In granting, denying, or revoking a Certificate of Public Convenience and Necessity under 26 Del.C. §203C and these regulations, the Commission shall act consistently with the procedures required by 29 Del.C. Ch. 101, Subchapters III and IV.

1.4 The Commission may modify or extend any of the timing requirements set forth in these regulations so long as such timing requirement is not required by statutory provision.

1.5 The Commission may by Order, and for good cause, waive any obligation under these regulations that is not required by statute and may, in an individual application, excuse any failure to comply with these regulations that is not material to the Commission's decision.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-2.0 Definitions

2.1 The following words and terms, when used in these regulations, should have the following meanings, unless the context clearly indicates otherwise:

"Commission" refers to the Public Service Commission.

"CPCN" or "Certificate" means a Certificate of Public Convenience and Necessity required by the provisions of 26 Del.C. §203C.

"DPH" refers to the Division of Public Health of the Department of Health and Social Services.

"DNREC" refers to the Department of Natural Resources and Environmental Control.

"Existing development" or "existing subdivision" means an aggregate of parcels or properties within a particular geographic area:

(a) That constitute a single-named development or subdivision;

(b) That share common deed restrictions or covenants; or

The existence and boundaries of such a development or subdivision may be established by a plat or subdivision map, documents reflecting common deed or conveyance restrictions, homeowner association documents, or other means.

"Existing unincorporated community" means an aggregate of parcels or properties lying within a particular compact unincorporated geographic area that share common community interests; and

(a) That are generally recognized as an unincorporated community;

(b) That are commonly described as comprising a named community; or

The existence and boundaries of such an unincorporated community may be established by a plat, map, census data, post office designation, testimony of the residents, or other means.

"Landowner notification" means the process for delivering to each landowner of record the relevant form of notice prescribed by either these regulations or further Commission directive.

"Landowner of record" shall mean each person or entity as defined and described in 26 Del.C. §203C(j). A landowner of record may be identified by reference to public tax or public land records or by relevant land conveyance documents.

"New water utility" means, for the purposes of 26 Del.C. §203C(e)(2), an entity that has not previously provided water utility services to the public within this State.

"Postal Service" refers to the United States Postal Service.

"Proposed service area" is equivalent to "the proposed territory to be served" and means the area in which the applicant proposes to offer and provide its water utility services. The proposed service area shall be described by reference to 1 or more parcels or properties, identified by the relevant county tax map identification designations. If the proposed service area cannot be described by reference to parcels or properties, it may be described by a metes and bounds description, or any other equivalent description capable of being mapped.

"Record date" means the date for determining the persons and entities who are landowners of record in the proposed service area. The record date shall be a date chosen by the applicant that is no more than 60 days prior to the date of filing of the application for a CPCN.

"SFM" refers to the Office of the State Fire Marshal. "Staff' refers to the staff of the Commission.

"Secretary" refers to the Secretary of the Commission.

"Water utility" means a person or entity as defined by 26 Del.C. §102(8) that is obligated to obtain a CPCN under 26 Del.C. §203C(a).

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-3.0 Application for Certificate of Public Convenience and Necessity

In General

3.1 An application for a Certificate to begin the business of a water utility, or to extend or expand the business, operations, or facilities of any existing water utility, shall be made in writing and shall be filed with the Commission.

3.2 An applicant may request, by a single application, Certificates for 1 to 5 proposed service areas. In the case of an application joining multiple proposed service areas, the application shall contain sufficient information and documentation to establish the applicant's entitlement to a Certificate for each separate proposed service area. The Commission shall separately determine for each proposed service area whether to grant a Certificate for that area. However, the Commission, by a single Order, may grant a CPCN for 1 or more of the proposed service areas that have been joined in a single application.

3.3 The CPCN application shall include all information and supporting documentation required by 26 Del.C. §203C, the Commission's Rules of Practice and Procedure, and these regulations. An application shall not be considered to be complete and filed until all such information and supporting documentation has been submitted to the Commission. An application shall:

3.3.1 Summarize the reason or reasons why the Commission should grant the CPCN for each requested proposed service area;

3.3.2 Provide specific citations to the statutory and regulatory provisions relied upon for a CPCN for each proposed service area;

3.3.3 Identify any significant element of the application that, to the applicant's knowledge, poses a unique statutory or factual question or represents a departure from prior decisions of the Commission; and

3.3.4 Prominently state the name, address, telephone number, and e-mail address of the individual to be notified concerning the contents of the application.

Information About Each Proposed Service Area

3.4 The application shall include, for each proposed service area requested:

3.4.1 A written description of the general geographic location of the area which also describes the type of area (such as a proposed development, an existing development or existing subdivision, an existing unincorporated community, or an aggregation of a number of parcels);

3.4.2 A general map (reflecting towns or cities, and major transportation routes) appropriately marked to show the location of each proposed service area;

3.4.3 For applications premised on 26 Del.C. §203C(e)(1)b.3. a map, plat, or precise description of the boundaries of the existing development, existing subdivision, or existing unincorporated community accompanied by references to the documents or filings used to define and describe the existing development, existing subdivision, or unincorporated community. Upon request, the applicant shall provide the underlying documents or filings utilized to define and describe the existing development, existing subdivision, or existing unincorporated community; and

3.4.4 A listing (using county, tax map parcel numbers or designations) of each parcel encompassed within the proposed service area, accompanied by the name and mailing addresses of the landowner or landowners of record for each such parcel as of the record date;

3.4.4.1 The listing shall conspicuously identify the tax records or land record documents utilized by the applicant to determine the name and address of each landowner of record;

3.4.4.2 The listing shall conspicuously identify the record date used for determining the landowners of record of the encompassed parcel or parcels;

3.4.4.3 For a request premised on 26 Del.C. §203C(e)(1)b.3., the listing shall denote each parcel where all of the landowners of record have executed a petition requesting water utility services from the applicant; and

3.4.4.4 For a request premised on 26 Del.C. §203C(e)(1)b.3., the listing shall also indicate the applicant's calculation of the total number of parcels in the proposed service area and the total number of parcels where the landowners of record have executed a petition requesting water utility services from the applicant.

Evidence of Landowner Notification

3.5 The application shall contain for each proposed service area the documentation reflecting landowner notification as required by 26 Del.C. §203C(d)(1) or (e)(1), including:

3.5.1 Copies of relevant Postal Service forms demonstrating that the applicant sent by certified mail the appropriate form of notice as required by these regulations to each landowner of record of each parcel encompassed within the proposed service area;

3.5.2 Copies of all materials or messages provided to the applicant by the Postal Service reflecting either delivery of the certified mail or failure of certified mail delivery because the delivery was "refused," "unclaimed," "undeliverable," "unknown," or otherwise not completed; and

3.5.3 A certification (or other evidence) that, for each earlier notice that was returned by the Postal Service due to a failure of certified mail delivery, the applicant then sent another copy of the required notice by first class United States mail to the best available address of the applicable landowner of record.

Criteria for a CPCN Request

3.6 For a request for a proposed service area premised on 26 Del.C. §203C(d)(2)a., the application shall include all evidence (including reports or studies) that establish that the water sources and supplies then available in the proposed service area do not meet the relevant standards governing drinking water for human consumption promulgated and enforced by the Department of Health and Social Services.

3.7 For a request for a proposed service area premised on 26 Del.C. §203C(d)(2)b., the application shall include all evidence (including reports or studies) demonstrating that the supply of water available to the proposed service area is insufficient to meet the projected demand.

3.8 For a request for a proposed service area premised on 26 Del.C. §203C(e)(l)b.l., the application shall include a copy of a signed service agreement between the applicant and the developer of the proposed development or subdivision, and appropriate documentation reflecting that the development or subdivision has finally been approved by the relevant county or municipal government.

3.9 For a request for a proposed service area premised on 26 Del.C. §203C(e)(1)b.2., the application shall include copies of each petition requesting that the applicant provide water services which has been signed by all of the landowners of record of each parcel in the proposed service area. Each such petition must meet the criteria set forth in Section 8.0.

3.10 For a request for a proposed service area premised on 26 Del.C. §203C(e)(1)b.3., the application shall include copies of each petition requesting that the applicant provide water services which has been signed by all of the landowners of record of a parcel to be encompassed by the proposed service area. Each such petition must meet the criteria set forth in Section 8.0. The application shall include such petitions for a majority of the parcels within the existing development, existing subdivision, or existing unincorporated community that constitutes the proposed service area.

3.11 For a request for a proposed service area premised on 26 Del.C. §203C(e)(1)b.4., the application shall include a certified copy of the resolution or ordinance from the governing body of the relevant county or municipality that requests, directs, or authorizes the applicant to provide water utility services to the proposed service area. If requested, the applicant must also provide additional references to demonstrate that the county or municipality enacting the ordinance or resolution has the appropriate legal authority to authorize the provision of water utility services to the proposed service area.1

Additional Criteria for a CPCN Request by a Municipal Water Authority

3.12 If the applicant is a municipal water authority created under the provisions of Chapter 14 of title 16 of the Delaware Code, and it seeks a proposed service area that lies, wholly or in part, outside of the political boundaries of the municipality or municipalities that originally,,created such municipal authority, the application shall also include, as required by 26 Del.C. §203C(n), a certified copy of a resolution of the governing body of each such municipality requesting that the Certificate for the extra-territorial portion of the proposed service area be granted.2

Plan of Service

3.13 An application shall include, for each proposed service area, a description of how and when the applicant plans to provide water utility services to the area, including an estimated timetable for providing service or an explanation as to why such an estimated timetable cannot be provided. If the proposed service area is intended to be part of a regional water system, the applicant shall identify the region that includes the proposed service area, and provide information setting forth the applicant's plans for the regional water system.3

Quality of Service Certifications and Information

3.14 In the case of a request by a water utility to expand or extend its operations and business, the application shall contain a certification that the proposed extension and expansion will satisfy the provisions of 26 Del.C. §403(c). The applicant shall certify that:

3.14.1 The applicant is then furnishing water to its present customers in such manner that water pressure at every connection is at least 25 pounds at all times;

3.14.2 The applicant will furnish water to each new customer in each proposed service area at the pressure of at least 25 pounds at the service connection while continuing also to supply each existing customer at a pressure of at least 25 pounds at each service connection;

3.14.3 The applicant is not then subject to a ruling, decision, or finding by any Federal or State regulatory authority that found, concluded, or determined that the applicant materially failed to comply with applicable safe drinking water or water quality standards; and

3.14.4 The applicant is not subject to any finding or Order of the Commission that determined that the applicant materially failed to provide adequate or proper safe water services to existing customers.

3.15 If an applicant cannot supply each of the above certifications, the application shall include a statement why the provisions of 26 Del.C. §403(c) do not apply to the applicant or the particular application.

3.16 If an application will involve a water utility project or water utility services that require the review, approval, or authorization of any other State or Federal regulatory body (including DNREC, the SFM, or the DPH) the application shall also include:

3.16.1 A description of the nature of the review by the other regulatory body and current status of such review; and

3.16.2 A copy of any permit, order, certificate, approval, or other documents already issued by any other regulatory body, relating to the water project or services.

3.17 If, after the filing of the application, any other State or Federal regulatory body issues any permit, order, certificate, approval, or other documents related to the water project or services relevant to the application, the applicant shall promptly file such document with the Commission.

Additional Materials to be Supplied with the Application

3.18 Unless the following materials are already on file with, or available to, the Commission, an applicant - other than a municipal or other governmental water utility - shall provide with the application the following information:

3.18.1 A corporate or business history including dates of incorporation and subsequent acquisitions and/or mergers;

3.18.2 A complete description of all relationships between the applicant and its parent, subsidiaries, and affiliates, including a chart of such intra- and inter-company relationships;

3.18.3 A map identifying all areas where the applicant then provides water utility services;

3.18.4 The Annual Reports provided to owners of the applicant, or to the owners of its parent or subsidiaries, over the 2-year period prior to the filing of the application;

3.18.5 The audited financial statements, SEC 10K filings, and all proxy material related to the applicant for the 2 years prior to the filing of the application; and

3.18.6 Copies of all reports submitted by the applicant within the preceding 12 months to any State or Federal authority related to whether the applicant has complied with any statute, regulation, rule, or order concerning the provision of safe, adequate, and reliable water services (including the quality of water provided to existing customers).

3.19 Unless the materials are already on file with the Commission or available to the Commission, a municipal or other governmental water utility shall provide with the application the statement and documents identified in subsections 3.18.3 and 3.18.6.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-4.0 Additional Requirements for an Application Filed by a New Water Utility

4.1 If the applicant is a new water utility, the application, in addition to fulfilling the requirements of Section 3.0 through subsection 3.19, shall also include the following:

4.1.1 A copy of the applicant's certificate of incorporation, partnership agreement, or other enabling document;4

4.1.2 Materials that demonstrate that the applicant possesses the financial, operational, and managerial capacity to comply with all State and Federal safe drinking requirements and that the applicant has available, or will be able to procure, an adequate supply of water (even during drought conditions) to meet reasonably anticipated peak daily and monthly demands for its water utility services;

4.1.3 A description of the plant to be utilized to provide its water utility services (including details as to the type and capacity of treatment facilities, cost of facilities, and the projected construction schedule);

4.1.4 A map detailing the composition, diameter, length, and location of mains and pipes to be initially installed; and

4.1.5 A projection of the number of customers to be served in the 5-year period following the grant of the requested CPCN.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-5.0 Review of the Application and Deficiencies in the Application

5.1 An applicant may ask the staff to informally review a draft of an application prior to its formal filing. Such informal review shall not affect or delay the filing of an application that complies with applicable statutes and these regulations.

5.2 Upon filing, the staff shall review an application for compliance with the applicable statutory provisions and these regulations. Within 30 days after the date of filing, staff may notify the applicant of specific deficiencies in the application. The applicant shall have 30 days from the date of the receipt of such notice to file an amended or supplemental application. The Commission may, in its discretion, extend the period for curing deficiencies in the application for an additional period of time.

5.3 If the applicant submits an amended or supplemental application, the application shall then be deemed filed on the date of such submission for the purposes of the time limits set forth in 26 Del.C. §203C(h). In the event the deficiencies identified by staff are not cured within the time period provided, staff may request that the Commission reject the application.

5.4 During the period the application is pending before the Commission, the staff may request that the applicant provide additional relevant information or documents.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-6.0 Coordination with Other State Agencies, Counties, and Municipalities

6.1 At the time of the filing of an application, or within 3 days thereafter, the applicant shall serve copies of its application on DNREC, the SFM, and the DPH.

6.2 At the time of the filing of an application, or within 3 days thereafter, the applicant shall also send a notice of its application, with a description of the proposed service area, to the county in which the area lies (in whole or in part).

6.3 In addition, if any parcel of land in a proposed service area is located within a "future annexation area" or "future growth area" under a comprehensive plan (22 Del.C. §§101 and 702) adopted by a municipality that provides water utility services, then the applicant shall also serve a copy of the application on the municipality (or its municipal utility). The applicant shall serve such copy on the municipality (or its utility) at least 30 days prior to filing the application with the Commission. The application filed with the Commission shall include a certification of such service on the identified municipality.

6.4 During the process of reviewing an application, the staff shall coordinate and cooperate with DNREC, the SFM, and the DPH. Staff may also coordinate and cooperate with other interested State, local, and Federal authorities in reviewing the request for a CPCN.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-7.0 Proposed Service Area

7.1 For a request premised on 26 Del.C. §203C(d)(2)a, the proposed service area shall encompass only such parcels of land that lack available water sources or supplies that meet the standards governing drinking water for human consumption promulgated and enforced by the Department of Health and Social Services.

7.2 For a request premised on 26 Del.C. §203C(d)(2)b, the proposed service area shall encompass only such parcels of land that lack available water sources or supplies sufficient to meet the projected demand for water in such parcels.

7.3 For a request premised on 26 Del.C. §203C(e)(1)b.1., the proposed service area shall encompass only such parcels that are within the subdivision or development plat or plan that has been finally approved by the relevant county or municipal government.

7.4 For a request premised on 26 Del.C. §203C(e)(1)b.2., the proposed service area shall encompass either:

7.4.1 A single parcel; or

7.4.2 Two or more contiguous parcels that will be provided water utility services by the same stand-alone system or by the same main extension.5

7.5 For a request premised on 26 Del.C. §203C(e)(1)b.4., the proposed service area shall encompass only such parcels of land that the governing body of the county or municipality has directed, requested, or authorized the applicant to serve. For a request premised on 26 Del.C. §203C(e)(1)b.3., the Proposed Service Area shall encompass only such parcels of land that lie within the existing development, existing subdivision, or the existing unincorporated community as described and defined under subsection 2.1.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-8.0 Requirements Related to 26 Del.C. §203C(e)(1)(2) and (3)

8.1 If a water utility solicits a landowner of record of a property to sign a petition to request water service, the utility must provide the landowner with the following notice:

YOU SHOULD READ THIS NOTICE CAREFULLY. Public records list you as a landowner of the property with the following tax map parcel identification number or numbers: [insert tax map parcel identification number or numbers] . [insert water utility's name] plans to file an application with the Delaware Public Service Commission requesting a Certificate of Public Convenience and Necessity (Certificate) to provide water service to a new territory described as [insert name and description of existing development, existing subdivision, or existing unincorporated community].

[INSERT WATER UTILITY'S NAME] WANTS YOU TO SIGN A PETITION BY WHICH YOU AGREE TO INCLUDE YOUR PROPERTY IN THE TERRITORY IT INTENDS TO SERVE. [INSERT WATER UTILITY'S NAME] ESTIMATES THAT IT WILL PROVIDE WATER SERVICE TO [insert description of proposed service territory and estimated timetable for providing service. If the utility cannot provide an estimated timetable for providing service, the notice must make the following disclosure in conspicuous language: [INSERT UTILITY'S NAME] IS UNABLE TO ESTIMATE WHEN IT WILL PROVIDE WATER SERVICE TO YOUR PROPERTY [AND] [insert description of proposed service territory].

IF YOU SIGN THE PETITION PROPOSED BY [INSERT WATER UTILITY'S NAME] YOUR DECISION TO INCLUDE YOUR PROPERTY IN [INSERT WATER UTILITY'S NAME] SERVICE TERRITORY MAY BE PERMANENT. IT MAY ALSO AFFECT YOUR ABILITY TO OBTAIN A PERMIT FOR A NEW WELL.

IF YOU DO NOT WISH TO BE INCLUDED IN [INSERT WATER UTILITY'S NAME] SERVICE TERRITORY, DO NOT SIGN THE PETITION.

IF YOU DO NOT SIGN THE PETITION, [INSERT WATER UTILITY'S NAME] MAY NEVERTHELESS SEND YOU A LETTER ASKING YOU TO INCLUDE YOUR PROPERTY IN ITS SERVICE TERRITORY. IF YOU RECEIVE SUCH A LETTER, YOU MAY HAVE TO TAKE ADDITIONAL ACTION.

IF YOU HAVE ANY QUESTIONS, COMMENTS, OR CONCERNS, PLEASE CONTACT THE PUBLIC SERVICE COMMISSION AT (302) 736-7500 (in Delaware, call 800-282-8574).

8.2 For a request premised on either 26 Del.C. §203C(e)(1)b.2. or 26 Del.C. §203C(e)(1)b.3., each petition requesting water utility services from the applicant must:

8.2.1 Bear the signature of each landowner of record (or a duly authorized agent) that is requesting water utility services from the applicant;

8.2.2 Reflect the date for each signature by each landowner of record, which date shall not be any earlier than 1 year prior to the date of the filing of the application;

8.2.3 Bear a printed recitation of the name of each landowner of record executing the petition;

8.2.4 Describe the nature and office of the executing individual if the request is by an artificial entity;

8.2.5 Identify the tax map parcel number associated with each landowner of record requesting water service;

8.2.6 List the present mailing address and telephone number of each landowner of record that executes the request for water utility services; and

8.2.7 Contain the following statement in conspicuous language:

I UNDERSTAND THAT BY SIGNING THIS PETITION MY PROPERTY MAY HAVE TO REMAIN IN [INSERT WATER UTILITY'S NAME] SERVICE TERRITORY PERMANENTLY. I ALSO UNDERSTAND THAT IT MAY AFFECT MY ABILITY TO OBTAIN A PERMIT FOR A NEW WELL.

IF YOU HAVE ANY QUESTIONS, COMMENTS, OR CONCERNS, PLEASE CONTACT THE PUBLIC SERVICE COMMISSION AT (302) 7367500 (in Delaware, call 800-282-8574).

8.3 If a petition under 26 Del.C. §203C(e)(1)b.2. or 26 Del.C. §203C(e)(1)b.3. involves a petition for water utility services on behalf of condominium units as defined by 26 Del.C. §203C(j), the applicant shall provide with such petition the materials required by 26 Del.C. §203C(g)(1).

8.4 If a petition for water utility services is executed by an agent of the landowner of record, the applicant shall provide with the petition evidence to demonstrate the agent's authority to act for the landowner of record.

8.5 Each water utility shall file with the Commission any written materials the utility proposes to use to solicit landowners of record to sign a petition requesting water utility service from the utility.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-9.0 Notice to Landowners in the Proposed Service Area

9.1 Pursuant to the provisions of 26 Del.C. §203C(d)(1) and (e)(1), prior to filing the application, the applicant shall send the form of notice prescribed by these regulations to each landowner of record in the proposed service area. The landowners of record shall be determined as of the record date.

9.2 The form of notice required by these regulations shall be sent to each landowner of record not more than 35 days and not less than 30 days prior to the filing of the application.

9.3 For requests premised on 26 Del.C. §203C(d)(2)a. or b., the notices shall be sent by United States Postal Service certified mail, return receipt requested, with delivery restricted to the addressee.

9.4 For requests premised on 26 Del.C. §203C(e)(1)b.l. or 4., the notices shall be sent by United States Postal Service certified mail, return receipt requested, with delivery restricted to the addressee.

9.5 For requests premised on 26 Del.C. §203C(e)(1)b.2. or 3., the notices shall be sent to those landowners of record who did not execute a petition for water services by United States Postal Service certified mail, return receipt requested, and with delivery restricted to the addressee. In the case of landowners of record who did execute petitions for water service, the notices shall be sent by United States Postal Service certified mail, return receipt requested.

9.6 If the Postal Service returns to the applicant any materials reflecting that, in the case of a particular landowner of record, the certified mail delivery required under subsections 9.3 through 9.5 failed because the delivery was "refused," "unclaimed," "undeliverable," "unknown," or otherwise not completed, then the applicant shall promptly re-send the form of the required notice by first class United States mail to the best available address of that landowner of record.

9.7 The Commission, by Order, may authorize a method of providing notice to landowners of record that is equivalent to the methods set forth in subsections 9.3 through 9.6.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-10.0 Form of Notice to Landowners of Record

10.1 The notice to be sent to landowners of record in a request premised on either 26 Del.C. §203C(d)(2), 26 Del.C. §203C(e)(1)b.1., or 26 Del.C. §203C(e)(1)b.4. shall be in a form approved by the Commission.

10.2 If the request is premised on 26 Del.C. §203C(e)(1)b.2., the form of notice sent to landowners of record must include the following statements:

YOU SHOULD READ THIS NOTICE CAREFULLY.

Public records list you as a landowner of the property with the following tax map parcel identification number or numbers: [insert tax map parcel identification number or numbers] . Within 35 days, [insert water utility's name] plans to file an application with the Delaware Public Service Commission requesting a Certificate of Public Convenience and Necessity (Certificate) to provide water service to a new territory described as [insert description of the proposed service territory] .

[INSERT WATER UTILITY'S NAME] HAS INCLUDED YOUR PROPERTY IN THE TERRITORY IT INTENDS TO SERVE. [INSERT WATER UTILITY'S NAME] ESTIMATES THAT IT WILL PROVIDE WATER SERVICE TO [insert description of proposed service territory and estimated timetable for providing service. If the utility cannot provide an estimated timetable for providing service, the notice must make the following disclosure in conspicuous language: [INSERT UTILITY'S NAME] IS UNABLE TO ESTIMATE WHEN IT WILL PROVIDE WATER SERVICE TO YOUR PROPERTY OR [insert description of proposed service territory].

IF YOU DO NOT TAKE ANY ACTION NOW, YOU MAY LOSE YOUR CHOICE OF WHO CAN PROVIDE WATER SERVICE TO YOUR PROPERTY AND WHETHER YOU CAN OBTAIN A WELL PERMIT.

You may choose to be included in the utility's proposed service territory. If you signed a petition for water service asking to be included in the utility's proposed service territory, you do not have to take any action.
You have the right to "opt-out" of the utility's proposed service territory. If you "opt-out", your property will not be included in the utility's service territory. You can do this even though others in the proposed service territory might desire water service from the utility. You should understand that being included in a utility's service territory does not mean that public water service will be immediately available to your property or that, when available, you will be required to hook-up to the public water system. However, if your property is included in the utility's water service territory, and later the water from the well providing your drinking water cannot be used, the Department of Natural Resources and Environmental Control might deny you a permit for a new well if public water is available to your property. On the other hand, if you elect to "opt-out" of the utility's service territory, but later change your mind and decide to connect to the utility's public water system, you could be charged additional fees.
You may object to the Public Service Commission granting a Certificate for the proposed service territory. For example, you may object that the water utility does not have the legal right to serve the territory. You should review the law about what a utility must provide in order to obtain a Certificate (contact the Public Service Commission to obtain a copy of the law). If you file such an objection, you will need to tell the Public Service Commission why the utility should not receive the Certificate. Please note that an objection will not remove your property from a proposed service territory. To remove your property from the service territory, you must request to "opt-out."

Attached to this letter is a form which allows you (and other owners of the property) to exercise your options. You have 75 days from your receipt of this notice to file your objection with the Commission. Although you may exercise your right to "opt-out" of the utility's service territory at any time before the Certificate is granted, if you choose to opt-out, it is requested that you complete the form and return it to the Public Service Commission at the address listed below within 75 days from the date you receive this notice:

Delaware Public Service Commission

861 Silver Lake Boulevard

Cannon Building, Suite 100

Dover, Delaware 19904

If you want to "opt-out" or object, you must send the completed form to the Public Service Commission, even if you already informed the utility of your intent to "opt-out" or object.

If you have any questions, comments or concerns, please contact the Public Service Commission at (302) 736-7500 (in Delaware, call 800-282-8574).

10.3 If the request is premised on 26 Del.C. §203C(e)(1)b.3., the form of notice sent to landowners of record must include the following statements:

YOU SHOULD READ THIS NOTICE CAREFULLY.

Public records list you as a landowner of the property with the following tax map parcel identification number or numbers: [insert tax map parcel identification number or numbers]. Within 35 days, [insert water utility's name] plans to file an application with the Delaware Public Service Commission requesting a Certificate of Public Convenience and Necessity (Certificate) to provide water service to a new territory described as [insert name and description of existing development, existing subdivision. or existing unincorporated community].

IF YOU DO NOT TAKE ANY ACTION NOW, YOU MAY LOSE YOUR CHOICE OF WHO CAN PROVIDE WATER SERVICE TO YOUR PROPERTY AND WHETHER YOU CAN OBTAIN A WELL PERMIT.

I) You may choose to be included in the utility's proposed service territory. If you signed a petition for water service asking to be included in the utility's proposed service territory, or, if you did not sign a petition for water service but want to be included, you do not have to take any action.

You have the right to "opt-out" of the utility's proposed service territory. If you "opt-out", your property will not be included in the utility's service territory. You can do this even though others in [insert development or community name] might desire water service from the utility. You should understand that being included in a utility's service territory does not mean that public water service will be immediately available to your property or that, when available, you will be required to hook-up to the public water system. However, if your property is included in the utility's water service territory, and later the water from the well providing your drinking water cannot be used, the Department of Natural Resources and Environmental Control might deny you a permit for a new well if public water is available to your property. On the other hand, if you elect to "opt-out" of the utility's service territory, but later change your mind and decide to connect to the utility's public water system, you could be charged additional fees.
You may object to the Public Service Commission granting a Certificate for [insert development or community name] . For example, you may object that the water utility does not have the legal right to serve the territory. You should review the law about what a utility must provide in order to obtain a Certificate (contact the Public Service Commission to obtain a copy of the law). If you file such an objection, you will need to tell the Public Service Commission why the utility should not receive the Certificate. Please note that an objection will not remove your property from a proposed service territory. To remove your property from the service territory, you must request to "opt-out."

Delaware Public Service Commission 861 Silver Lake Boulevard

Cannon Building, Suite 100

Dover, Delaware 19904

If you want to "opt-out" or object, you must send the completed form to the Public Service Commission, even if you already informed the utility of your intent to "opt-out" or object.

If you have any questions, comments or concerns, please contact the Public Service Commission at (302) 736-7500 (in Delaware, call 800-282-8574).

10.4 In a request under 26 Del.C. §203C(e), the notice sent to each landowner shall also include a form of response (in a form approved by the Commission) that allows the landowner to easily and plainly exercise the options available under the form of notice.

10.5 Except as the Commission might specifically approve, the applicant shall not include any other correspondence with the landowner notice required by these regulations. The exterior of the envelope for any notice shall carry language (approved by the Commission) to alert the landowner of the importance of the notice.

10.6 The applicant is not required to send the Section 10.0 opt-out notice with a solicitation notice sent pursuant to Section 8.0 of these regulations.

10.7 Within 10 days of the filing of the application, the applicant shall also publish a form of public notice of its application in accordance with 26 Del.C. §102A. The Commission shall approve a form of such public notice. The applicant shall promptly file proof of such publication with the Commission. In the published notice of each CPCN application, the utilities shall provide a description of the properties involved, including:

10.7.1 The nearest intersecting roads (i.e at the intersection of Canterbury Road and Delaware Avenue or approximately one-half mile from intersection of Canterbury Road and Delaware Avenue);

10.7.2 Directional information about the parcels (i.e on the north side of Delaware Avenue, etc.);

10.7.3 A listing of Property Tax ID numbers if available (metes and bounds descriptions if Tax ID numbers are unavailable or if neither of those are available, some description capable of being mapped); and

10.7.4 The street address(es) shall also be provided if available.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-11.0 Landowner's Options to Object or "Opt-Out," and Objections from Other Interested Persons or Entities

11.1 A landowner or record of a parcel that is, in whole or in part, within a proposed service area may object to a CPCN being granted by filing with the Commission a signed written document reflecting such objection. The objection shall set forth the reasons why the applicant is not entitled to a Certificate. Except for good cause, the written objection shall be filed with the Commission no later than 75 days after the landowner receives the notice required under subsections 9.1 and 10.1.

11.2 The Commission may allow persons or entities that are not landowners of record to file an objection to an application for a CPCN. The objection shall set forth the person's or entity's interest in the matter and the reasons why the applicant is not entitled to a Certificate. Except for good cause, the objection by a non-landowner shall be filed with the Commission no later than 40 days after publication of the notices required under subsection 10.7.

11.3 In an application premised on 26 Del.C. §203C(e)(1)b.2. or 3., a landowner of record of a parcel that is, in whole or in part, within a proposed service area may: (a) object to the issuance of the CPCN, or (b) "opt-out" and have the landowner's parcel excluded from the proposed service area pursuant to 26 Del.C. §203C(i). A landowner of record may exercise 1 or more of the above options;

11.3.1 The applicant shall immediately inform the Commission of the name and address of each landowner of record that notifies the applicant, either verbally or in writing, that the landowner wishes to exercise any of the options under subsection 11.3.

11.3.2 The applicant shall immediately file with the Commission any written documents from a landowner that exercises any of the options in subsection 11.3.

11.4 At any time prior to the issuance of the CPCN premised on 26 Del.C. §203C(e)(1)b.2.or 3., a landowner of record of a parcel that is, in whole or in part, within a proposed service area, may file with the Commission a signed written document requesting that the landowner's parcel be excluded from the proposed service area pursuant to 26 Del.C. §203C(i). A parcel will be excluded from the proposed service area if any landowner of record of such parcel submits a signed "opt-out" request for exclusion of the parcel. The Commission may deny an "opt-out" request submitted by a landowner of record if the landowners of record holding, or vested with, a controlling interest in the parcel rescind, or countermand, the request to "opt-out." The other owners shall demonstrate to the Commission that they hold the authority to bind the parcel.

11.5 The Commission shall maintain a record of all written documents received from landowners of record that exercise the options available under subsections 11.1 through 11.4.

11.6 An applicant shall retain all records related to an application for a Certificate for a period of 7 years after the date of the filing of the application. The applicant shall make such records available to the Commission upon request.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-12.0 Suspension or Revocation of CPCN for Good Cause

12.1 Pursuant to the provisions of 26 Del.C. §203 (k) and (1), the Commission may suspend or revoke a CPCN, or a portion thereof, for good cause. Good cause shall consist of:

12.1.1 A finding by the Commission that the holder of a CPCN has not materially complied with:

12.1.1.1 Any provisions of Titles 7, 16, or 26 of the Delaware Code dealing with obtaining water or providing water and water services to customers; or

12.1.1.2 Any order or rule of the Commission relating to the same;

12.1.2 A finding by the Commission that, to the extent practicable, service to customers will remain uninterrupted under an alternative water utility or a designated third party capable of providing adequate water service, including a trustee or receiver appointed by the Delaware Court of Chancery; and

12.1.3 Either:

12.1.3.1 A finding by the Commission that there are certain methods to mitigate any financial consequences to customers served by the utility subject to suspension or revocation and the adoption of a plan to implement those methods; or

12.1.3.2 A finding by the Commission that there are no practicable methods to mitigate the financial consequences to customers.

12.2 In addition to the factors required by subsections 12.1.1, 12.1.2, and 12.1.3, the Commission may also consider 1 or more of the following factors in determining whether to suspend or revoke a CPCN:

12.2.1 Fraud, dishonesty, misrepresentation, self-dealing, managerial dereliction, or gross mismanagement on the part of the water utility; or

12.2.2 Criminal conduct on the part of the water utility; or

12.2.3 Actual, threatened or impending insolvency of the water utility; or

12.2.4 Persistent, serious, substantial violations of statutes or regulations governing the water utility in addition to any finding of non-compliance required by subsection 12.1.1 above; or

12.2.5 Failure or inability on the part of the water utility to comply with an Order of any other State or Federal regulatory body after the water utility has been notified of its non-compliance and given an opportunity to achieve compliance; or

12.2.6 Such other factors as the Commission deems relevant to the determination to suspend or revoke a CPCN.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

26 Del. Admin. Code § 2002-13.0 Proceedings to Suspend or Revoke a CPCN for Good Cause

13.1 Proceedings before the Commission to suspend or revoke a CPCN for good cause shall be conducted in accordance with the procedures set forth in 29 Del.C. Ch. 101, Subchapters III and IV.

13.2 Unless the Commission finds, pursuant to proceedings conducted in accordance with subsection 13.1 above, that:

13.2.1 The conduct of the water utility poses an imminent threat to the health and safety of its customers; or

13.2.2 The water utility is incapable of providing safe, adequate, and reliable water service, the Commission will not suspend or revoke a CPCN for good cause without initially affording the water utility a reasonable opportunity to correct the conditions that are alleged to constitute the grounds for the suspension or revocation of the CPCN.

History

27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
27 DE Reg. 894 (05/01/24)
5 DE Reg. 212 (07/01/01)
14 DE Reg. 120 (08/01/10)
27 DE Reg. 894 (05/01/24)

3000 Energy Regulations

3002 Regulations Governing Termination of Residential Electric or Natural Gas Service by Public Utilities for Non-Payment During Extreme Seasonal Temperature Conditions

26 Del. Admin. Code § 3002 Regulations Governing Termination of Residential Electric or Natural Gas Service by Public Utilities for Non-Payment During Extreme Seasonal Temperature Conditions

Public Service Commission

3002 Regulations Governing Termination of Residential Electric or Natural Gas Service by Public Utilities for Non-Payment During Extreme Seasonal Temperature Conditions

PSC REGULATION DOCKET NO. 53

(Opened: April 15, 2003 (PSC Order No. 6148)

1.0 General

1.1 Authority

These regulations are adopted pursuant to the authority granted to the Public Service Commission under 26 Del.C. §209(a) and 29 Del.C. §101.

1.2 Application and Purpose

These regulations establish uniform procedures which must be followed prior to termination of service for non-payment during the heating or cooling season and apply to all covered utilities. The purpose of these regulations is to protect public health, safety, and property by taking reasonable steps to insure that an individual has the opportunity to act to avoid termination of certain utility services for non-payment during the heating or cooling season without imposing substantial additional cost on other utility customers. Notwithstanding anything stated in these regulations to the contrary, the provisions of these regulations do not apply during the cooling season to a customer of a natural gas utility, unless the natural gas utility provides natural gas service for space cooling to the customer's dwelling unit.

2.0 Definitions

“Cooling Season” means that portion of the calendar year extending from June 1 through September 30.

“Covered Utility” means any utility regulated by the Public Service Commission of Delaware that supplies electric or natural gas service to a dwelling unit.

“Dwelling Unit” means one or more rooms arranged for the use of one or more individuals as a single housekeeping unit, with cooking, living, sanitary, and sleeping facilities.

“Heat Index” a measure utilized by the National Weather Service of the apparent temperature (how hot it feels) when relative humidity is added to the actual air temperature.

“Heating Season” means that portion of the calendar year extending from November 15 to March 31.

“Personal Contact” means a face-to-face meeting between the customer or responsible occupant of the premises served and an employee of the covered utility who is authorized to receive payment and issue a receipt or make other arrangements for payment.

“Written Notice” means notice in writing, mailed by First Class mail to the person who is being given notice, using the current billing address as shown on the records of the utility.

3.0 Prohibitions

3.1 Written and Verbal Notice

3.1. Notwithstanding any tariff provision or contract provision to the contrary, no covered utility shall terminate service to a dwelling unit during the heating or cooling season for non-payment of a past due bill or bills, unless at least fourteen (14) calendar days prior to such termination, written notice is given to the customer. The notice shall state the fact of impending termination, the date on or after which such termination will occur, and the steps which may be taken to avoid such termination. In addition, during the heating season, the covered utility shall make at least two (2) documented attempts on separate days to contact the customer by telephone prior to actual termination of service. One such attempt shall be after 6:00 P.M. During the cooling season, the covered utility shall make at least one (1) documented attempt to contact the customer by telephone prior to actual termination of service.

3.1.2 During the heating season only, in those situations where the billing address is different from the location at which the service is being provided, the advance written notice required by §3.1.1 must also be given to the occupant of the premises being served.

3.2 Content of Notice

The written and verbal notice required by §3.1.1 shall, at a minimum, include notification of the following:

3.2.1 The date on or after which termination of service will occur unless some satisfactory arrangement is made for the payment of the undisputed delinquent bill or bills, which date shall be no less than fourteen (14) calendar days from the mailing of written notice.

3.2.2 That if there is a good faith dispute concerning the unpaid bill or bills, termination of service will not take place pending determination of the dispute, provided the utility is notified of the existence of the dispute prior to actual termination. In this regard, the utility must also give the name or names of the persons or office authorized to receive notification of the existence of the dispute and empowered to resolve such disputes, together with the telephone number and address at which such persons or office can be contacted and notified of the existence of a dispute. No covered utility shall be required to delay termination of service pending resolution of a disputed bill or bills where the undisputed portion of the bill or bills would otherwise justify termination of service or where the customer does not agree to pay current undisputed bills as they become due and to eliminate undisputed arrearages by installment payments. Service will not be reconnected after termination for non-payment on the grounds that a good faith dispute exists unless and until arrangements satisfactory to the covered utility have been made for payment in the event the dispute is resolved in favor of the utility.

3.2.3 That if the customer is unable to pay the full amount of the undisputed bill or bills, termination of service may be avoided by entering into an initial installment agreement with the utility whereby the customer will agree to pay current bills as they become due and eliminate, by monthly installment payments, the undisputed arrearage over a period of not less than that during which the unpaid bills were incurred with interest on the unpaid balance at the next billing date. If the customer violates the initial installment agreement, the limitation on the minimum duration of the initial installment agreement shall not apply to any subsequent installment agreement. The interest rate shall be set forth in the approved tariff of the covered utility. The name, address, and telephone number of the utility employees or office empowered to enter into installment arrangements on behalf of the covered utility must be provided to the customer.

3.2.4 That if the customer is unable to pay the undisputed bill or bills in full, or to enter into a satisfactory reasonable installment arrangement, there are charitable or governmental organizations or agencies that may be able to assist customers who are so situated and that the customer should immediately contact such organizations. The written notice required by §3.1.1 shall contain either a list of those organizations who have notified the covered utility that they may be able to assist customers, or the name and telephone number of an organization that the customer can contact to obtain such information.

3.2.5 That if any occupant of the dwelling unit is so ill that termination of the utility service would adversely affect health or recovery, which fact has been certified by a statement from any licensed Delaware physician or any accredited Christian Science practitioner, when such certification is received by the covered utility or its employee, termination of service is prohibited by Delaware Law (26 Del.C. §117(d)).

3.3 Final Contact Prior to Termination

The employee of the utility who is to disconnect service shall make a reasonable good faith attempt to make personal contact at the premises to be disconnected. If personal contact is made, the employee shall:

3.3.1 Identify himself or herself to the customer or some responsible person then upon the premises and shall announce the purpose of his or her presence.

3.3.2 Identify and record the name of the person contacted.

3.3.3 Accept payment of all amounts tendered which are necessary to avert disconnection and issue a receipt for such payment. If the form of payment is unacceptable to the utility, the employee can make other payment arrangements with the customer.

3.3.4 Record and report to his or her supervisor any statements disputing the accuracy of the utility's findings concerning the cause for termination of service.

3.3.5 Record and report to his or her supervisor statements or other information concerning the existence of any condition on the premises which would result in a medical emergency if service were terminated.

3.3.6 Receive written certification from a duly licensed Delaware physician or accredited Christian Science practitioner that a named occupant of the dwelling unit is so ill that termination of service will adversely affect the occupant’s health or recovery. Upon receipt of such certification, the utility shall not disconnect service.

4.0 Third Party Notice

4.1 Non-Mandatory Third Party Notice

All covered utilities shall inform all of their customers of the availability of any third party notification program offered by the utility, whereby the customer can designate, in writing, a third person to receive notice of past due bills and written notice of termination of service. The third party so designated must indicate, in writing, willingness to receive such notice and shall not be held, in any way, liable to the utility by reason of acceptance of third party status.

4.2 Termination Notice Without Third Party Notice Program

No covered utility without a third party notice program, shall terminate service to a dwelling unit during the heating or cooling season without first having given the written notice required by §3.1 and, in addition, having made actual contact on a face-to-face basis with an occupant over the age of 15 years of such dwelling unit, giving the minimum notice set forth in §3.3.

4.3 Information Concerning Third Party Notice

If a covered utility adopts such a program, the utility shall take appropriate steps to see that all customers are aware of the existence of the third party notice program.

5.0 Termination Of Service To Multiple Occupancy Dwelling Units Served Through A Master Meter

5.1 Prohibition

Notwithstanding any tariff provision or contract provision to the contrary, no covered utility shall terminate service during the heating or cooling season to any apartment complex, trailer park, or other grouping of individual residential dwelling units to which service is provided directly or indirectly through a master meter without individual meters, unless such utility has provided the notice required in §§ 5.2 and 5.3.

5.2 Notice to Owner

A written notice pursuant to § 5.1 shall be sent by First Class mail not less than fourteen (14) calendar days prior to the scheduled date of termination for non-payment to the owner of the premises affected or in lieu thereof, to the person, firm, or corporation to whom or which the last preceding bill has been rendered or from whom or which the covered utility has received payment. The content of such notice shall, at minimum, include the notification required by § 3.2.

5.3 Notice to Occupants

The covered utility shall, at least ten (10) calendar days prior to termination for non-payment, provide notice to the occupants, which notice shall state the intended date of termination of service, the amount due for such service, and the procedure by which any tenant or public agency may make or guarantee such payment, and thereby avoid termination of service.

Such notice to occupants shall either be mailed by first class mail to the "occupant" of each dwelling unit in the building complex to which service is proposed to be terminated or posted in a conspicuous place or places at each building subject to termination, including common areas accessible to the utility.

5.4 Notice to State Agencies

Not less than fourteen (14) calendar days prior to termination of service to a multiple occupancy dwelling unit, the covered utility shall provide written notice of its intention to so terminate to the Public Service Commission of the State of Delaware, and to the Division of the Public Advocate.

6.0 Prohibition On Termination During Extreme Seasonal Temperature Conditions

6.1 Conditions of Termination

6.1.1 Heating Season

Under no circumstances may a covered utility terminate service for non-payment to a dwelling unit on a day when the National Weather Service reports that the 8:00 A.M. temperature measured at a location in the State of Delaware that is within fifty (50) miles of the subject dwelling unit is thirty-two degrees Fahrenheit (32oF) or below on the morning of the date when said service is scheduled for termination.

6.1.2 Cooling Season

Under no circumstances may a covered utility terminate service for non-payment to a dwelling unit on a day when the 8:00 A.M. National Weather Service forecast contains a special weather statement or other information predicting that the Heat Index measured at a location in the State of Delaware that is within fifty (50) miles of the subject dwelling unit may equal or exceed one-hundred five degrees Fahrenheit (105oF) on the date when said service is scheduled for termination.

6.2 Deferred Termination

Where termination of service, otherwise authorized, has been deferred by virtue of § 6.1, notice of such fact shall be left at the subject dwelling unit on the date on which termination was to be effected, notifying the occupant that unless proper payment arrangements are made, service will be terminated thereafter on a day when § 6.1 does not apply. If the termination of service involves an apartment complex, trailer park, or other grouping of individual residential dwelling units to which service is provided directly or indirectly through a master meter without individual meters, the notice required by this section shall be deemed sufficient if the notice is given in accordance with § 5.3.

7.0 Penalty And Burden Of Proof

7.1 Penalty

Any covered utility determined, after hearing, to have terminated service for non-payment to a dwelling unit or multiple occupancy dwelling unit in violation of these regulations, may be fined an amount equal to twice the amount of arrearage for which service was terminated, or such lesser amount as deemed appropriate after full consideration of the circumstances. The fine which may be imposed shall not exceed the sum of $1,000 for each day during which the termination is in violation of these regulations.

7.2 Burden of Proof

The burden of proof of compliance with these regulations shall be upon the covered utility at any proceeding instituted by formal written complaint to or upon motion of the Public Service Commission of Delaware. The Commission specifically reserves the right to randomly select termination cases and require the covered utility to appear before the Commission at a duly noticed hearing and establish compliance with these regulations.

9 DE Reg. 756 (11/01/03)

3007 Electric Service Reliability and Quality Standards

26 Del. Admin. Code § 3007 Electric Service Reliability and Quality Standards

EFFECTIVE DATE: September 10, 2006

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-1.0 Purpose and Scope

1.1 Reliable electric service is an essential service to Delaware citizens of great importance to the Delaware Public Service Commission ("Commission"). This regulation, in support of 26 Del.C. §1002 and 26 Del.C. §1008, sets forth reliability standards, distribution planning requirements, distributed generation considerations, and reporting requirements needed to assure the continued reliability and quality of electric service being delivered to Delaware regulated public utility customers and applies to all Delaware Electric Distribution Companies ("EDCs").

1.2 Nothing in this regulation relieves an EDC from compliance with any requirement set forth under any other regulation, statute or order. To the extent there is any inconsistency between this regulation and any other regulation, or order, this regulation shall control.

1.3 Compliance with this regulation is a minimum standard. Compliance does not create a presumption of safe, adequate and proper service. Each EDC must exercise its professional judgment based on its systems and service territories. Nothing in this regulation relieves any EDC from the requirement to furnish safe, adequate and proper service and to keep and maintain its property and equipment in such condition as to enable it to do so. (26 Del.C. §209)

1.4 Each EDC is responsible for maintaining the reliability of electric service to all its customers in the State of Delaware. Pursuant to this requirement, EDCs may be subject to penalties as described in Section 10.0 or 26 Del.C. §1019.

1.5 EDCs are required to explore the use of proven state of the art technology, to provide cost effective electric service reliability improvements.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-2.0 Definitions

The following words and terms, as used in these regulations, shall have the following meanings, unless the context clearly indicates otherwise:

“Availability” means the measure of time a generating unit, transmission line, or other facility is capable of providing service, whether or not it actually is in service.

“Beginning restoration” includes the essential or required analysis of an interruption, the dispatching of an individual or crew to an affected area, and their arrival at the work site to begin the restoration process (normally inclusive of dispatch and response times).

“Benchmark” means the standard service measure of SAIFI, CAIDI and Forced Outage Rate as set forth in these regulations.

“Capacity” means the rated continuous load-carrying ability, expressed in megawatts (“MW”) or megavolt-amperes (“MVA”) of generation, transmission, or other electrical equipment.

“Contingency” means the unexpected failure or outage of a system component, such as a generator, transmission line, circuit breaker, switch, or other electrical element. A contingency may also include multiple components, which are related by situations leading to simultaneous component outages.

“Corrective action” means the maintenance, repair, or replacement of an EDC’s utility system components and structures to allow them to function at an acceptable level of reliability.

“Corrective maintenance” means the unplanned maintenance work required to restore delivery facilities to a normal operating condition that allows them to function at an acceptable level of reliability.

“Customer Average Interruption Duration Index (‘CAIDI’)” represents the average time in minutes required to restore service to those customers that experienced sustained interruptions during the reporting period. CAIDI is defined as follows:

CAIDI = Sum of all Sustained Customer Interruption Durations per Reporting Period

Total Number of Sustained Customer Interruptions per Reporting Period

“Delivery Facilities” means the EDC’s physical plant used to provide electric energy to Delaware retail customers, normally inclusive of distribution and transmission facilities.

“Dispatch time” is the elapsed time between receipt of a customer call and the dispatch of a service resource to address the customer’s issue as tracked by the OMS.

"Distribution facilities" means electric facilities located in Delaware that are owned by a public utility that operates at voltages of 34,500 volts or below and that are used to deliver electricity to customers, up through and including the point of physical connection with electric facilities owned by the customer.

“Distribution feeder” or “feeder” means a three-phase set of conductors emanating from a substation circuit breaker serving customers in a defined local distribution area. This includes three-phase, two-phase and single-phase branches that are normally isolated at all endpoints.

“Electric Distribution Company” or “EDC” means a public utility owning and/or operating transmission and/or distribution facilities in this state.

“Electric distribution system” means that portion of an electric system, that delivers electric energy from transformation points on the transmission system to points of connection at the customers’ premises.

“Electric service” means the supply, transmission, and distribution of electric energy as provided by an electric distribution company.

“Interrupting device” means a device, capable of being reclosed, whose purpose includes interrupting fault currents, isolating faulted components, disconnecting loads and restoring service. These devices can be manual, automatic, or motor operated. Examples include transmission and distribution breakers, line reclosers, motor operated switches, fuses or other devices.

“Interruption” means the loss of electric service to one or more customers. It is the result of one or more component outages, depending on system configuration or other events. See “outage” and “major event.” The types of interruption include momentary event, sustained and scheduled.

“Interruption, duration” means the period (measured in minutes) from the initiation of an interruption of electric service to a customer until such service has been restored to that customer. An interruption may require step restoration tracking to provide reliable index calculations.

“Interruption, momentary event” means an interruption of electric service to one or more customers, of which the duration is less than or equal to 5 minutes. This definition includes all reclosing operations, which occur within five minutes of the first interruption. For example, if a recloser or breaker operates two, three, or four times and then holds within five minutes, the event shall be considered one momentary event interruption.

“Interruption, scheduled” means an interruption of electric service that results when one or more components are deliberately taken out of service at a selected time, usually for the purposes of preventative maintenance, repair or construction. Scheduled interruptions, where attempts have been made to notify customers in advance, shall not be included in the SAIFI, CAIDI, or Forced Outage Rate calculations.

“Interruption, sustained” means an interruption of electric service to one or more customers that is not classified as a momentary event interruption and which is longer than five minutes in duration.

“Major Event” means an event consistent with the I.E.E.E.1366, Guide For Electric Power Distribution Reliability Indices standard as approved and as may change over time. For purposes of this regulation, changes shall be considered to be in effect beginning January 1 of the first calendar year after the changed standard is adopted by the I.E.E.E. Major event interruptions shall be excluded from the EDC’s SAIFI, CAIDI and Forced Outage Rate calculations for comparison to reliability benchmarks. Interruption data for major events shall be collected, and reported according to the reporting requirements set forth in this regulation.

“Outage” means the state of a component when it is not available to perform its intended function due to some event directly associated with that component. An outage may or may not cause an interruption of electric service to customers, depending on system configuration.

“Outage management system (‘OMS’)” means a software operating system that provides database information to effectively manage service interruptions and minimize customer outage times.

“PJM Interconnection, L.L.C. (‘PJM’)” means the independent system operator that is responsible for mid-Atlantic region wholesale energy markets and the interstate transmission of energy, or it’s successor organization.

“Power quality” means the characteristics of electric power received by the customer, with the exception of sustained interruptions and momentary event interruptions. Characteristics of electric power that detract from its quality include waveform irregularities and voltage variations – either prolonged or transient. Power quality problems shall include, but are not limited to, disturbances such as high or low voltage, voltage spikes or transients, flicker and voltage sags, surges and short-time overvoltages, as well as harmonics and noise.

“Preventive maintenance” means the planned maintenance, usually performed to preclude forced or unplanned outages, and which allows delivery facilities to continue functioning at an acceptable level of reliability.

“Related projects” are individual projects whose completion is required, contingent, or dependent on each other for overall completion of the specified scope of work.

“Reliability” means the degree of performance of the elements of the bulk electric system that results in electricity being delivered to customers within accepted standards and in the amount desired. Reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply. Electric system reliability can be addressed by considering two basic and functional aspects of the electric system – Adequacy and Security. (See ERC definition - NERC’s Reliability Assessment 2001-2010, dated October 16, 2001.)

Adequacy - The ability of the electric system to supply the aggregate electrical demand and energy requirements of customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements.

Security - The ability of the electric system to withstand sudden disturbances such as electric short circuits or unanticipated loss of system elements. (See NERC definition - NERC’s Reliability Assessment 2001–2010, dated October 16, 2001.)

As applied to distribution facilities, reliability is further described as the degree to which safe, proper and adequate electric service is supplied to customers without interruption.

“Repair time” is the elapsed time from the arrival of the service resource at the identified problem site to the correction of the customer’s original concern as tracked by the OMS.

“Response time” is the elapsed time from dispatch of service resource to the arrival of the service resource at the identified problem site as tracked by the OMS.

“Step restoration” means the restoration of service to blocks of customers in an area until the entire area or circuit is restored.

“Sum of all Sustained Customer Interruption Durations” means the summation of the restoration time (in minutes) for each event times the number of interrupted customers for each step restoration of each interruption event during the reporting period.

“Supervisory Control And Data Acquisition ('SCADA')” is an electronic communication and control system that provides electrical system operating information and mechanisms to remotely control energy flows and equipment.

“System Average Interruption Duration Index ('SAIDI')” represents the average duration of sustained interruptions per customer. SAIDI is defined as:

SAIDI = Sum of all Sustained Customer Interruption Durations per Reporting Period

Total Number of Customers Served per Reporting Period

“System Average Interruption Frequency Index (‘SAIFI’)” represents the average frequency of sustained interruptions per customer during the reporting period. SAIFI is defined as:

SAIFI = Total Number of Sustained Customer Interruptions per Reporting Period

Total Number of Customers Served per Reporting Period

“Total Number of Customers Served” means the number of customers provided with electric service by the distribution facility for which a reliability index is being calculated on the last day of the time period for which the reliability index is being calculated. This number should exclude all street lighting (dusk-to-dawn lighting, municipal street lighting, traffic lights) and sales to other electric utilities.

“Total Number of Sustained Customer Interruptions” means the sum of the number of interrupted customers for each interruption event during the reporting period. Customers who experienced multiple interruptions during the reporting period are counted for each interruption event the customer experienced during the reporting period.

“Transmission facilities” means electric facilities located in Delaware and owned by a public utility that operates at voltages above 34,500 volts and that are used to transmit and deliver electricity to customers (including any customers taking electric service under interruptible rate schedules as of December 31, 1998) up through and including the point of physical connection with electric facilities owned by the customer.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-3.0 Electric Service Reliability and Quality

3.1 Each EDC shall install, operate and maintain its delivery facilities in conformity with the requirements of the National Electrical Safety Code (“NESC”) and the operating policies and standards of NERC and PJM, or their successor organizations.

3.2 Each EDC shall ensure that distribution, system generation interconnection requirements are consistent with the I.E.E.E. 1547 series, “Standard for Interconnecting Distributed Resources with Electric Power Systems”, as current approved and may be revised.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-4.0 Reliability and Quality Performance Benchmarks

4.1 The measurement of reliability and quality performance shall be based on annual SAIDI and SAIFI calculations. The SAIDI and SAIFI calculations shall be derived using the most current IEEE 1366 Beta methodology. The SAIDI and SAIFI calculations shall include all Delaware customer outages, excluding scheduled interruptions, and major events, and the SAIDI and SAIFI calculations shall be reported along with their CAIDI component, subdivided by their distribution, substation, and transmission components.

4.2 Each EDC shall take measures to maintain its overall electric service reliability and quality performance measures within the benchmark standard as follows:

4.2.1 The three-year average SAIFI shall not exceed 1.0 interruption.

4.2.2 The three-year average SAIDI shall not exceed 100 minutes.

4.3 Every three years, the SAIDI and SAIFI benchmarks will be reset by the same percentage that the respective three-year IEEE threshold between first and second quartile has changed.

4.4 Each EDS shall develop and maintain a comprehensive Priority Feeder program for analyzing the reliability performance of its circuits during the course of each year which includes methods to measure and improve works performing circuits.

4.5 When performance does not meet the acceptable reliability level, additional monitoring and enforcement actions may be taken including the following: additional remedial review, requiring additional EDC reporting, conducting an informal investigation, initiating a formal complaint, requiring a formal improvement plan with enforceable commitments, requiring an implementation schedule, and assessing penalties and fines as defined in Section 10.0.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-5.0 Reliability and Quality Performance Objectives

5.1 Each EDC shall have an inspection and maintenance program designed to maintain delivery facilities performance at an acceptable level. The program shall be based on industry codes, national electric industry practices, manufacturer’s recommendations, sound engineering judgement, NESC Rule 214 guidance, and past experience.

5.2 As a maintenance minimum, each EDC shall inspect all right-of-way vegetation at least once every four (4) years and trim or maintain as necessary, according priority to circuits that have had significant numbers of vegetation-related outages, while not unduly delaying the trimming of other circuits that inspections indicate currently need trimming. Vegetation management practices should be applied at least once every four (4) years except where growth or other assessments deem it unnecessary.

5.3 Each EDC shall maintain records of inspection and maintenance activities. Compliance with this requirement may be established by showing of substantial compliance without regard for a single particular facility maintenance record. These records shall be made available to the Delaware Public Service Commission Staff (“Staff”) and the Division of the Public Advocate (“DPA”) upon request of either party with 30 days’ notice.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-6.0 Distribution Planning and Studies Report

6.1 Long Range Distribution Plan

6.1.1 As the entity responsible for the planning of its system, each EDC shall submit a Long Range Distribution Plan (“LRDP”) to identify existing and potential future distribution system performance issues, and recommended solutions, for a minimum of ten (10) years to be refreshed every five (5) years. This plan is intended to serve as the strategic direction for an EDC’s anticipated major initiatives. The LRDP shall be submitted, subject to subsection 6.3, by June 15th every fifth year. The first LRDP shall be submitted by June 15, 2022, for the effective period of 2023-2032.

6.1.2 The LRDP shall include:

6.1.2.1 An updated analysis populated with current and projected loads for the term of the LRDP, trending tables, set of limiting factors, and other criteria used to establish a project need.

6.1.2.2 A system evaluation of equipment and circuit loading compared to thermal limits, breaker operating capability, asset condition, and safety and environmental issues. Contingency (N-1) response capability will be analyzed at the substation level, and as appropriate, at the feeder level.

6.1.2.3 The specific programs and / or projects included in the LRDP will be longer-term initiatives that require multiple years from concept through implementation. The LRDP will include recommendations that provide a comprehensive solution to address projected system performance concerns. All proposed projects within the LRDP shall be supported by:

6.1.2.3.1 A detailed description of the system condition, recommended solutions, and anticipated timing of solution implementation;

6.1.2.3.2 A detailed comparison of recommended solutions to alternatives, including implementation of utility or third-party owned non-wires alternatives (NWA) as appropriate, in a manner that clearly identifies the reliable, and environmentally responsible investment; and

6.1.2.3.3 Current cost estimates, which may be at a budgetary level.

6.1.2.4 System capacity and voltage driven projects identified within the first five (5) years of the LRDP shall include a system engineering model covering the affected and adjoining areas that may be impacted by the proposed project.

6.1.2.5 Non-wires alternatives in whole, or in part, shall be considered as solutions to capacity and/or major asset condition related system performance issues. A project whose estimated cost exceeds $1,000,000 over the term of the LRDP shall be evaluated for a NWA.

6.2 Infrastructure, Safety and Reliability Plan

6.2.1 The EDC shall submit a proposed rolling 3-year Infrastructure, Safety, and Reliability Plan (“ISR”) identifying proposed capital spending necessary to maintain the reliability and quality of its distribution services. Subject to subsection 6.3, the proposed ISR shall be submitted no later than March 31, 2020 or 90 days following the effective date of this regulation, whichever is later, and no later than March 31st every year thereafter. The initial report shall address 2020-2022, and subsequent reports will address the year in which it is submitted and two subsequent years. The proposed ISR shall be structured under the following major spending categories:

6.2.1.1 Mandatory

6.2.1.1.1 New business - Customer Requirements

6.2.1.1.2 Facility relocations

6.2.1.1.3 Required Statutory and Regulatory Requirements

6.2.1.1.4 Reliability – emergency failures

6.2.1.2 Non-Mandatory

6.2.1.2.1 System Capacity/Load

6.2.1.2.2 Asset Condition

6.2.1.2.3 Other Reliability

6.2.1.3 Vegetation Management

6.2.1.4 Inspection and Maintenance (“I&M”) program

6.2.2 Mandatory spending shall include investments required to comply with customer requests, facility relocations, statutory and regulatory requirements, and to fix failed equipment. The proposed budgets may be for a combination of discrete projects and projects that are funded but whose specific scope has not yet been defined (“blanket projects”).

6.2.3 Non-Mandatory spending shall include those projects, programs, or other investments, including NWAs, necessary to maintain or improve distribution services and not included in the Mandatory spending category. Projects or groups of related projects shall be supported with project authorization documents including detailed cost estimates. I&M and reliability-based programs shall be supported by guidelines or program documents. The proposed budgets may be for a combination of discrete projects and blanket projects.

6.2.4 To support each proposed annual budget, the proposed ISR shall describe: how the EDC developed the spending plan and levels; reference of applicable proposed projects to the LRDP, the justification, scope, and estimated cost, for each planned project of $1,000,000 or more; planned I&M activities and expected improvements; other planned reliability or maintenance programs; and planned vegetation management targets and activities.

6.2.5 The proposed ISR shall include the EDC’s estimated cost of plant in service and cost of removal for each year of the three-year term.

6.2.6 For major projects or groups of related projects in the System Capacity/Load or Asset Condition categories that exceed $1,000,000 over the term of the ISR and were not included in the LRDP, the ISR will include the information required in subsections 6.1.2.3 and 6.1.2.4.

6.3 Review and Acknowledgement

6.3.1 Each LRDP or ISR (“Plan”) shall be submitted to the Staff and the DPA. Within the first 90 days following submission of each Plan, the EDC, Staff, and the DPA shall cooperate in good faith and schedule, if necessary, at least two sessions to meet and confer on the proposed Plan and discuss any proposed modifications.

6.3.2 No later than 120 days following the EDC’s submission of each Plan to Staff and the DPA, the EDC shall file the proposed Plan with the Commission.

6.3.3 Staff and the DPA may submit comments to the Plan by filing those comments to the Commission within ten days of the EDC’s filing of its proposed Plan.

6.3.4 The EDC has the right to file reply comments to Staff and the DPA comments within ten days of their filings to the proposed Plan.

6.3.5 The Commission shall acknowledge that the Plan and any associated comments has been filed and is consistent with the requirements of this regulation. Commission acknowledgement shall not constitute Commission pre-approval of any proposed capital spending necessary to maintain the reliability and quality of the EDC’s distribution services.

6.3.6 Any party may challenge the EDC’s attempt to recover the amounts spent.

6.3.7 The EDC’s obligation to maintain reliability and quality of its distribution system may necessitate executing on the plan prior to the PSC’s acknowledgement In executing the ISR Plan, the circumstances encountered during the year may require reasonable deviations from the filed ISR Plan.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-7.0 Annual Reports

7.1 Reliability Performance

7.1.1 By April 30 of each year, each EDC shall file with the Commission an annual Reliability Performance Report (“RPR”) providing an overall assessment of the state of system reliability in the EDC’s service territory. The RPR shall include an assessment of the results/effectiveness of reliability objectives, planned actions, projects, and programs implemented to achieve an acceptable reliability level. The RPR shall include the EDC's actual year-end performance measure results.

7.1.2 The RPR shall include the EDC’s delivery facilities’ year-end performance measures as follows:

7.1.2.1 SAIDI, SAIFI, and CAIDI measures:

7.1.2.1.1 SAIDI, SAIFI, and CAIDI measures for the current year and three-year average reflecting Delaware performance, classified by distribution and substation components and in total, as compared to the benchmarks established in subsection 4.2;

7.1.2.1.2 SAIDI, SAIFI, and CAIDI measures for the current and previous five (5) years compared to IEEE regional results, indicating the quartile achieved; and

7.1.2.1.3 CAIDI measures for the current year and three-year average for each circuit providing service to Delaware customers, regardless of state of origin.

7.1.3 The RPR shall identify distribution circuits that are identified by the EDC as having the poorest reliability according to the criteria in the EDC’s Priority Feeder Program.

7.1.3.1 Current and previous five (5) year summary level OMS data to include:

7.1.3.1.1 Number of outages by outage type;

7.1.3.1.2 Number of outages by outage cause;

7.1.3.1.3 Total number of customers at year end;

7.1.3.1.4 Total number of customers that experienced an outage; and

7.1.3.1.5 Total customer minutes of outage time.

7.1.3.2 The EDC shall indicate any planned corrective actions to improve circuit performance and target dates for completion or explain why no action is required.

7.1.4 The RPR shall include a summary of each major event for which data was excluded, and an assessment of the measurable impact on reported performance measures.

7.1.5 In the event that an EDC's reliability performance measure does not meet the performance measures established in subsection 4.2, the RPR shall include a description of system issues impacting reliability and all corrective actions that are planned by the EDC; the estimated cost of corrective actions; and the target dates by which the corrective actions shall be completed. If no corrective actions are planned, an explanation shall be provided.

7.2 Infrastructure, Safety, and Reliability Plan Annual Report

7.2.1 By March 31st of each year, starting March 31, 2021, each EDC shall submit an ISR annual report for the previous year to include:

7.2.1.1 Overall progress.

7.2.1.2 Budget to actual variance for each spending category (both plant in service/COR and spending plan) with discussion of drivers.

7.2.1.3 Comparison of actual versus planned project implementation with discussion of deviations including delays and accelerated work; and, explanation for inclusion of any program, project, or group of related projects with a total cost estimate exceeding $1,000,000 that were not previously included in an ISR.

7.2.1.4 Comparison of I&M and vegetation management program activities to plan, with discussion of deviations and drivers.

7.2.1.5 Comparison of any other projects or programs.

7.2.1.6 An explanation of the variance for any program and/or project exceeding $1,000,000 that was completed in the reporting year and exceeds +/- 10% of the proposed budget.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-8.0 Major Event Report

8.1 Each EDC shall notify the Commission of major events as soon as practical, but not more than 36 hours after the onset of a major event. Initial notification is required when more than 10% of an EDC's customers experience a sustained outage during a 24- hour period, calculated according to I.E.E.E. 1366 standards.

8.2 Each EDC is expected to restore service to customers as quickly and safely as permitted by major event conditions. The EDC's restoration effort may be subject to review, subsequent corrective actions and penalties as permitted by 26 Del.C. §1019.

8.3 The EDC shall, within 15 business days after the end of a major event, submit a written report to the Commission, which shall include the following:

8.3.1 The date and time when the EDC's major event control center opened and closed;

8.3.2 The total number of customers’ out-of-service over the course of the major event in six-hour increments;

8.3.3 The date and time when 75%, 95% and 100% of customers affected by a major event were restored;

8.3.4 The total number of trouble assignments repaired, by facility classification (poles, miles of wire, transformers);

8.3.5 The time at which the mutual aid and non-company contractor crews were requested, arrived for duty and were released, and the mutual aid and non-contractor response(s) to the request(s) for assistance; and

8.3.6 A timeline profile in six-hour increments of the number of company line crews, mutual aid crews, and non-company contractor line and tree crews working on restoration activities during the duration of the major event, summarized by total number of line, bucket, trouble, and tree types.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-9.0 Guidelines, Standards and Programs

9.1 The EDC shall file with the Commission the most current version of the following guidelines, standards, and programs:

9.1.1 Distribution System Planning Criteria;

9.1.2 Inspection and Maintenance Program;

9.1.3 Vegetation Management Program;

9.1.4 Standard for Interconnecting Distributed Resources with Electric Power Systems;

9.1.5 Power Quality Program and Policies;

9.1.6 Priority Feeder Program; and

9.1.7 Storm Response Plan.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-10.0 Penalties and Other Remedies

10.1 EDCs operating in Delaware and subject to Commission regulation who violate any of the requirements of this regulation are subject to penalties and other remedial actions in accordance with 26 Del.C. §§205(a), 217, and 1019. No penalty shall be assessed except after a public hearing at which the EDC, Staff, the DPA, or any other affected person may present evidence. The Commission shall be responsible for assessing any penalty under this section, consistent with Delaware law.

10.2 An EDC shall be considered in violation of the SAIDI or SAIFI performance benchmark standard when its actual results exceed the benchmark standard(s) as defined in subsection 4.2.

10.3 Penalty assessments are payable as provided by Delaware statute.

10.4 Nothing in this section relieves any EDC from compliance or penalties that may be assessed due to non-compliance with any requirement set forth under any other regulation, statute or order.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

26 Del. Admin. Code § 3007-11.0 Reporting Specifications and Implementation

11.1 Each EDC must maintain sufficient records to permit a review and confirmation of material contained in all required planning documents and reports. Reports shall be submitted electronically via Delafile to the Secretary, Delaware Public Service Commission, with certification of authenticity by an officer of the corporation.

11.2 Subject to and without waiving the requirements of 29 Del.C. Ch. 100 (the “Freedom of Information Act” or “FOIA”), EDCs may request information required under this regulation to be classified as confidential, proprietary and/or privileged material. The requesting party must attest that such information is not subject to inspection by the public or other parties without execution of an appropriate proprietary agreement. Each party requesting such treatment of information is also obligated to file one (1) additional electronic and paper copy of the information, excluding the confidential or proprietary information. The Commission, in accordance with the FOIA and 26 DE Admin. Code 1001, will treat such information as "confidential, not for public release" upon receipt of a properly filed request. The Commission, designated Presiding Officer, or Hearing Examiner shall resolve any dispute over the confidential treatment of information in accordance with the FOIA and 26 DE Admin. Code 1001.

History

16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
13 DE Reg. 1100 (02/01/10)
23 DE Reg. 888 (04/01/20)
23 DE Reg. 888 (04/01/20)
10 DE Reg. 576 (09/01/06)
13 DE Reg. 1100 (02/01/10)
16 DE Reg. 1000 (03/01/13)
23 DE Reg. 888 (04/01/20)

3008 Rules and Procedures to Implement the Renewable Energy Portfolio Standard (Opened August 23, 2005)

26 Del. Admin. Code § 3008-1.0 Definitions

1.1 The following words and terms, when used in this Regulation, should have the following meanings unless the context clearly indicates otherwise:

"Alternative Compliance Payment" or "ACP" means a payment of a certain dollar amount per megawatt hour, which a CREC may submit in lieu of supplying the minimum percentage of RECs required under subsection 3.3.5.

"Commission" means the Delaware Public Service Commission.

"Community-owned energy generating facility" means a renewable energy generating facility, located in the service area of a utility under the regulation of the Public Service Commission, that has multiple owners or customers who share the output of the generator, which may be located either as a stand-alone facility or behind the meter of a participating owner or customer. The facility shall be interconnected to the distribution system and operated in parallel with an electric distributions company 's trans mission and distribution facilities.

"Compliance Year" means the calendar year beginning with June 1 and ending with May 31 of the following year, for which a CREC must demonstrate that it has met the requirements of this Regulation.

“CREC” means a Commission-regulated electric distribution company or a Commission-regulated utility.

"Customer-Sited Generation" means a Generation Unit that is interconnected on the End-Use Customer's side of the retail electricity meter in such a manner that it displaces all or part of the metered consumption of the End-Use Customer.

"DNREC" means Delaware Department of Natural Resources and Environmental Control.

"Eligible Energy Resources" means the following energy sources located within the PJM region or imported into the PJM region and tracked through the PJM Market Settlement System:

Solar Photovoltaic Energy Resources;

Electricity derived from wind energy;

Electricity derived from ocean energy including wave or tidal action, currents, or thermal differences;

Geothermal energy technologies that generate electricity with a steam turbine, driven by hot water or steam extracted from geothermal reservoirs in the earth's crust;

Electricity generated by a fuel cell powered by Renewable Fuels;

Electricity generated by the combustion of gas from the anaerobic digestion of organic material;

Electricity generated by a hydroelectric facility that has a maximum design capacity of 30 megawatts or less from all generating units combined that meet appropriate environmental standards as determined by DNREC (see DNREC Regulation's Secretary's Order No. 2006-A-0035);

Electricity generated from the combustion of biomass that has been cultivated and harvested in a sustainable manner as determined by DNREC, and is not combusted to produce energy in a waste to energy facility or in an incinerator (see DNREC Regulation's Secretary's Order No. 2006-A-0035);

Electricity generated by the combustion of methane gas captured from a landfill gas recovery system; provided, however, that:

Increased production of landfill gas from production facilities in operation prior to January 1, 2004 demonstrates a net reduction in total air emissions compared to flaring and leakage;

Increased utilization of landfill gas at electric generating facilities in operation prior to January 1, 2004 (i) is used to offset the consumption of coal, oil, or natural gas at those facilities, (ii) does not result in a reduction in the percentage of landfill gas in the facility's average annual fuel mix when calculated using fuel mix measurements for 12 out of any continuous 15 month period during which the electricity is generated, and (iii) causes no net increase in air emissions from the facility; and

Facilities installed on or after January 1, 2004 meet or exceed 2004 Federal and State air emission standards, or the Federal and State air emission standards in place on the day the facilities are first put into operation, whichever is higher.

"End-Use Customer" means a person or entity in Delaware that purchases electrical energy at retail prices from a CREC.

"Fund" or “Green Energy Fund” means the Delaware Green Energy Fund as authorized under 26 Del.C. §1014(a).

"GATS" means the Generation Attribute Tracking System developed by PJM-Environmental Information Services, Inc. (PJM-EIS).

"Generation Attribute" means a non-price characteristic of the electrical energy output of a Generation Unit including, but not limited to, the Unit's fuel type, geographic location, emissions, vintage, and RPS eligibility.

"Generation Unit" means a facility that converts a fuel or an energy resource into electrical energy.

"Industrial Customer" means an End-Use Customer with a North American Industry Classification System (NAICS) Manufacturing Sector Code.

"Municipal Electric Company" means a public corporation created by contract between 2 or more municipalities pursuant to provisions of Title 22, Chapter 13 of the Delaware Code and the electric utilities that are municipally owned within the State of Delaware.

"New Renewable Generation Resources" means Eligible Energy Resources first going into commercial operation after December 31, 1997.

"Non-Exempt Customers" means all customers of the Commission-regulated electricity company that have not been certified by the Commission as exempt from the RPS under subsection 2.2.

"Peak Demand" shall have the same meaning as and be determined consistently with how such term or a similar term is defined and determined in the applicable utility's tariff then in effect and approved by the Commission. For customers with more than one account, the peak demands shall be aggregated for all accounts. The calculation will be applied in the current year based on the Peak Demand, as defined above, in the prior year.

"PJM" or "PJM Interconnection" means the regional transmission organization (RTO) that coordinates the movement of wholesale electricity in the PJM region, or its successors at law.

"PJM region" means the area within which the movement of wholesale electricity is coordinated by PJM Interconnection. The PJM region is as described in the Amended and Restated Operating Agreement of PJM.

“Qualified Fuel Cell Provider” means an entity that:

a. By no later than the commencement date of commercial operation of the full nameplate capacity of a fuel cell project, manufactures fuel cells in Delaware that are capable of being powered by renewable fuels, and

b. prior to approval of required tariff provisions, is designated by the Director of the Delaware Economic Development Office and the Secretary of DNREC as an economic development opportunity.”

“Qualified Fuel Cell Provider Project” (or “QFCPP”) means a fuel cell power generation project located in Delaware owned and/or operated by a Qualified Fuel Cell Provider under a tariff approved by the Commission pursuant to 26 Del.C. §364(d).

"Renewable Energy Credit" or ("REC") means a tradable instrument comprised of all the Generation Attributes equal to 1 megawatt-hour of electricity derived from Eligible Energy Resources and that is used to track and verify compliance with the provisions of this Regulation. A REC does not include emission reduction credits and/or allowances encumbered or used by a Generation Unit for compliance with local, state, or federal operating and/or air quality permits associated with the 1 megawatt-hour of electricity.

"Renewable fuel" means a fuel that is derived from Eligible Energy Resources. This term does not include a fossil fuel or a waste product from a fossil fuel source.

"RPS" or "Renewable Energy Portfolio Standard" means the percentage of electricity sales at retail in the State that is to be derived from Eligible Energy Resources.

"Retail Electricity Product" means an electrical energy offering that is distinguished by its Generation Attributes only and that is offered for sale by a CREC to End-Use Customers. Multiple electrical energy offerings with the same Generation Attributes may be considered a single Retail Electricity Product.

"Rural Electric Cooperative" means a non-stock, non-profit, membership corporation organized pursuant to the Federal "Rural Electrification Act of 1936" and operated under the cooperative form of ownership.

"Solar Alternative Compliance Payment" or "SACP" means a payment of a certain dollar amount per megawatt-hour, which a CREC or Municipal Electric Supplier may submit in lieu of supplying the Minimum Percentage from Solar Photovoltaic required under subsection 3.3.6.

“Solar Photovoltaic Energy Resources” means solar photovoltaic or solar thermal energy technologies that employ solar radiation to produce electricity or to displace electricity use.

"Solar Renewable Energy Credit" or "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 and that is used to track and verify compliance with the provisions of this Regulation.

"Sustainable Energy Utility" or ("SEU") is the nonprofit entity according to the provisions of 29 Del.C. §8059 that develops and coordinates programs for energy end-users in Delaware for the purpose of promoting the sustainable use of energy in Delaware.

"Total Retail Sales" means retail sales of electricity within the State of Delaware exclusive of sales to any Industrial Customer with a Peak Demand in excess of 1,500 kilowatts.

“Unsubscribed energy” means any community-owned energy generating facility percentage of output that is not allocated to any customer.

History

11 DE Reg. 1670 (06/01/08)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
10 DE Reg. 151 (07/01/06)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
15 DE Reg. 1625 (05/01/12)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)

26 Del. Admin. Code § 3008-2.0 Purpose and Scope

2.1 The benefits of electricity from renewable energy resources accrue to the public at large, and electric suppliers and consumers share an obligation to develop a minimum level of these resources in the electric supply portfolio of the State. The purpose of this Regulation, in support of 26 Del.C. Subchapter III-A, is to set forth the rules for governing the RPS.

2.2 This Regulation shall apply to all Retail Electricity Products in the State of Delaware except for Retail Electricity Products sold by Municipal Electric Companies and Retail Electricity Products sold to any Industrial Customer with a Peak Demand in excess of 1,500 kilowatts.

2.2.1 An Industrial Customer with Peak Demand in excess of 1,500 kilowatts may elect to have its load exempt from this Regulation provided that it meets the definitions found in subsection 1.1 and:

2.2.1.1 submits a notice to the Commission's Staff including, but not limited to, Name and Address of Industrial Customer, and NAICS Code, and load for each account;

2.2.1.1.1 the Commission's Staff shall, within thirty (30) days of receipt of the notice, provide to the Industrial Customer an acknowledgement of the status, exempt or non-exempt, of the Industrial Customer; and

2.2.1.2 submits the Commission's Staff acknowledgement referenced in subsection 2.2.1.1.1 to its CREC.

2.2.2 For an End-Use Customer with multiple accounts totaling in excess of 1,500 kilowatts within an applicable utility's service territory, to have its load exempt, the aggregate of its accounts with an NAICS Manufacturing Sector Code must have a Peak Demand of at least 751 kilowatts and it must follow the procedure found in subsection 2.2.1.

2.3 Any Rural Electric Cooperative that has opted-out of Commission regulation by its membership pursuant to 26 Del.C. §223 of the Delaware Code shall, for all purposes of administering and applying this Regulation, be treated as a Municipal Electric Company during any period of time the Rural Electric Cooperative is exempt from Commission regulation.

2.4 A Rural Electric Cooperative may elect to be exempt from the requirements of this Regulation if it develops and implements a program for its ratepayers that is comparable to the RPS beginning in 2013. A Rural Electric Cooperative electing to be exempt from this Regulation must notify the Commission of such election and shall be subject to the requirements set forth in 26 Del.C. §363. A Rural Electric Cooperative not electing to be exempt from this Regulation shall be subject to this Regulation and the applicable provisions of 26 Del.C. §363.

History

11 DE Reg. 1670 (06/01/08)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
10 DE Reg. 151 (07/01/06)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
15 DE Reg. 1625 (05/01/12)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)

26 Del. Admin. Code § 3008-3.0 Administration of RPS

3.1 Certifying and Decertifying Eligible Energy Resources:

3.1.1 The Commission through its Staff will certify Generation Units as Eligible Energy Resources based on the definition of Eligible Energy Resources found in subsection 1.1.

3.1.2 Any Generation Unit seeking certification as an Eligible Energy Resource must submit an Application for Certification as an Eligible Energy Resource Under the Delaware Renewable Energy Portfolio Standard (Application) to the Commission. This may include Customer-Sited Generation or a Generation Unit owned or operated by a Municipal Electric Company.

3.1.3 Customer-sited generation is eligible to be considered an Eligible Energy Resource provided the facility is physically located in Delaware.

3.1.4 Commission Staff will review the Application and will notify the applicant of its approval as an Eligible Energy Resource or of any deficiencies in its Application within 30 days of receipt. The applicant will have the opportunity to revise its submission, if appropriate.

3.1.5 If an Eligible Energy Resource, once notified by Commission Staff, fails to provide the required documentation or missing information within 60 days of the date of such notification, the Application will be dismissed and must be resubmitted.

3.1.6 If Commission Staff finds the Generation Unit to be in compliance with this Regulation and other applicable law, Staff will issue a State of Delaware Certification Number.

3.1.7 Upon receipt of the State of Delaware Certification Number, a Generation Unit will be deemed an Eligible Energy Resource.

3.1.8 Upon designation as an Eligible Energy Resource, the Generation Unit's owner shall be entitled to one (1) REC for each mega-watt hour of energy derived from Eligible Energy Resources other than Solar Photovoltaic Energy Resources. Upon designation as an Eligible Energy Resource, the owner of a Generation Unit employing Solar Photovoltaic Energy Resources shall be entitled to one (1) SREC for each mega-watt hour of energy derived from Solar Photovoltaic Energy Resource. SRECs and RECs will be created and supplied by the PJM-EIS GATS, or its successor at law. Eligible Energy Resources are subject to applicable PJM-EIS GATS rules and shall pay applicable PJM-EIS GATS fees.

3.1.8.1 The Commission may establish or participate in another renewable energy tracking system, if the Commission finds that PJM-EIS's GATS is not applicable or not suited to meet the needs or requirements of the RPS.

3.1.9 If a Generation Unit is deemed an Eligible Energy Resource and the Eligible Energy Resource's GATS account continues to be maintained in good standing, the Eligible Energy Resource may achieve a Delaware designation for RECs or SRECs recorded with PJM-EIS's GATS for the calendar year being traded in GATS at the time of the Commission Staff's approval of the Eligible Energy Resource.

3.1.10 An Eligible Energy Resource will remain certified unless substantive changes are made to its operational characteristics. Substantive changes include but are not limited to changes in fuel type, fuel mix and generator type. An Eligible Energy Resource making substantive changes to its operational characteristics shall notify the Commission of such changes at least 30 days prior to the effective date of such changes. At such time, the Generation Unit shall submit a revised Application, which shall be subject to review and re-certification.

3.1.11 An Eligible Energy Resource must provide updates to any changes to information submitted in the Application within 30 days of those changes becoming effective. These changes include but are not limited to changes in ownership of the generating unit, changes in ownership of the RECs or SRECs, changes in system size, or the deactivation of the unit.

3.1.12 RECs or SRECs created by an Eligible Energy Resource shall remain valid for compliance, subject to subsection 3.2.9, subsection 3.3.3 and subsection 3.3.4, even if that Eligible Energy Resource is subsequently decertified for eligibility.

3.1.13 An Eligible Energy Resource may be decertified for any of the following:

3.1.13.1 Failure to comply with subsections 3.1.1 through 3.1.11;

3.1.13.2 A material change in circumstances that causes it to become ineligible for certification under subsection 3.1;

3.1.13.3 Fraud or misrepresentation in the Application or to PJM-EIS GATS;

3.1.13.4 Failure to properly update the Commission on changes to information submitted in the Application; or

3.1.13.5 Good cause as determined by the Commission.

3.2 Compliance with RPS

3.2.1 The Total Retail Sales of each Retail Electricity Product delivered to End-Use Customers by a CREC during any given Compliance Year shall include a minimum percentage of electrical energy sales from Eligible Energy Resources and Solar Photovoltaics as shown in Schedule 1.

Minimum Cumulative Percentage from Eligible Energy Resources includes the Minimum Cumulative Percentage from Solar Photovoltaics

3.2.2 A CREC’s compliance with Schedule 1 shall be based on accumulating RECs and SRECs equivalent to the current Compliance Year's Cumulative Minimum Percentage of Total Retail Sales of each Retail Electricity Product sold to End-Use Customers subject to subsection 3.2.9 and, where appropriate, other Commission regulations. Each CREC shall file a report detailing its compliance with its RPS obligations within 120 days following the end of the Compliance Year.

3.2.3 The CREC shall be responsible for procuring RECs, SRECs, and any other attributes needed to comply with the minimum percentage requirements set forth in 26 Del.C. §354 and subsection 3.2.1 with respect to all energy delivered to the CREC’s End-Use Customers.

3.2.4 The CREC will charge all of its distribution system End-Use Customers for RPS compliance costs through a non-bypassable charge based on the weighted average cost of the RECs and SRECs supplied by the CREC.

3.2.4.1 Industrial Customers whose peak demand is in excess of 1500 kilowatts and have been acknowledged by the Commission as having their load exempted from the RPS compliance obligations pursuant to 26 Del.C. §353(b), Section 1.0, and subsections 2.2.1 and 2.2.2, shall not be charged the RPS compliance cost permitted by subsection 3.2.3.

3.2.4.2 For a particular compliance year, the total recovery of the RPS compliance costs by the CREC, shall not be an amount greater than the CREC's actual dollar for dollar costs incurred for that compliance year in complying with the State of Delaware's RPS, except that any compliance fee assessed pursuant to 26 Del.C. §358(d) and subsection 3.3.5 shall be recoverable only to the extent authorized by 26 Del.C. §358(f)(2) and subsection 4.2.

3.2.5 The CREC shall place on their websites customer education pertaining to the RPS non-bypassable charge and credit required in subsections 3.2.3 and 3.2.3.1. The CREC shall also include information on the RPS non-bypassable charge and credit on its bill message or bill insert.

3.2.6 A CREC may use energy output produced by a Qualified Fuel Cell Provider Project to fulfill their REC and SREC requirements as set forth in 26 Del.C. § 353(d).

3.2.7 Energy output must be tracked using PJM-EIS GATS or its successor at law or pursuant to subsection 3.1.8.1.

3.2.8 The right of a CREC to use energy output produced by a Qualified Fuel Cell Provider Project to fulfill their REC and SREC requirements shall not expire until actually applied to fulfill such requirements.

3.2.9 No CREC with existing contractual electric supply obligations can provide more than 1% of each Compliance Year's Total Retail Sales from Eligible Energy Resources operational before December 31, 1997. The remainder of each year's retail sales, up to the required amount as specified in subsection 3.2.1 must come from New Renewable Generation resources. In Compliance Year 2026 and for each Compliance Year thereafter, all Eligible Energy Resources used to meet the cumulative minimum percentage requirements set by the Commission rules shall be New Renewable Generation Resources.

3.2.10 A CREC shall not use RECs or SRECs used to satisfy another state's renewable energy portfolio requirements for compliance with subsection 3.2.1 and Schedule 1. A CREC may sell or transfer any RECs or SRECs not required to meet this Regulation.

3.2.11 Eligible Energy Resources may create and accumulate RECs or SRECs for the purposes of calculating compliance with the RPS.

3.2.12 Eligible Energy Resources that do not settle though the PJM Market settlement system must document their actual output of generation, as recorded by appropriate metering, as frequently as PJM-EIS-GATS shall prescribe.

3.2.13 Aggregate generation from small Eligible Energy Resources totaling 100 kilowatts or less of capacity, may be used to meet the requirements of subsection 3.2.1 and Schedule 1 provided that the generators or their agents shall document the level of generation, as recorded by appropriate metering, as frequently as PJM-EIS-GATS shall prescribe.

3.2.14 A CREC or Rural Electric Cooperative shall receive 300% credit toward meeting the Minimum Cumulative Percentage from Eligible Energy Resources of subsection 3.2.1 and Schedule 1 of the RPS for energy derived from the following sources installed on or before December 31, 2014:

3.2.14.1 Customer-Sited solar photovoltaic physically located in Delaware; or

3.2.14.2 A fuel cell powered by Renewable Fuels for a CREC, and such a fuel cell sited in Delaware for Rural Electric Cooperatives.

3.2.15 A CREC or Rural Electric Cooperative shall receive 150% credit toward meeting the RPS for wind energy installations sited in Delaware on or before December 31, 2012.

3.2.16 A CREC or a Rural Electric Cooperative shall receive an additional 10% credit toward meeting the RPS for solar or wind energy installations sited in Delaware, provided that a minimum of 50% of the cost of the renewable energy equipment, inclusive of mounting components, relates to Delaware manufactured equipment.

3.2.17 A CREC or a Rural Electric Cooperative shall receive an additional 10% credit toward meeting the RPS for solar or wind energy installations sited in Delaware provided that the facility is constructed and/or installed with a workforce that consists of at least 75% Delaware residents and/or the installing company employs in total a minimum of 75% workers who are Delaware residents.

3.2.18 A CREC or a Rural Electric Cooperative shall receive credit toward meeting the RPS for electricity derived from the fraction of eligible landfill gas, biomass or biogas combined with other fuels (for a Rural Electric Cooperative the Eligible Energy Resource must be sited in Delaware).

3.2.19 Cumulative minimum percentage requirements of Eligible Energy Resources and Solar Photovoltaic Resources shall be established by Commission rules for Compliance Year 2036 and each subsequent year. The minimum percentages established by Commission rules may not be lower than those required for Compliance Year 2035 in subsection 3.2.1 and Schedule 1. Each of the rules setting such minimum percentage must be adopted at least two years before the minimum percentage being required.

3.2.20 The Renewable Energy Taskforce shall be formed for the purpose of making recommendations about the establishment of trading mechanisms and other structures to support the growth of renewable energy markets in Delaware according to 26 Del.C. §360(d).

3.3 Verification of Compliance with the RPS

3.3.1 Beginning with the Compliance Year 2012, the CREC must submit a completed Commission-Regulated Electric Company Compliance Report with the Delaware Renewable Energy Portfolio Standard Report which includes, but is not limited to, evidence of the specified number of SRECs and RECs required for the Compliance Year according to Schedule 1.

3.3.2 SRECs or RECs must have been created by PJM-EIS's GATS or its successor at law, or pursuant to subsection 3.1.8.1.

3.3.3 SRECs or RECs, submitted for compliance with this Regulation may be dated no earlier than three (3) years prior to the beginning of the current Compliance Year.

3.3.4 The three (3) year period referred to in subsection 3.3.3 shall be tolled during any period that a renewable energy credit or solar renewable energy credit is held by the SEU.

3.3.5 In lieu of standard means of compliance with the RPS, any CREC may pay into the Fund an ACP pursuant to, and in such amounts as stated in, 26 Del.C. §358. If alternative compliance payments representing 15% or more of the total number of RECs for eligible non-solar renewable energy resources are paid into the Fund for each of 2 consecutive compliance years, the minimum cumulative percentage from eligible energy resources specified in Schedule I of subsection 3.2.1 remains at the percentage specified for the immediately preceding year and does not increase from that percentage until a year passes during which less than 15% of the REC obligation is satisfied by alternative compliance payments. After the year in which less than 15% of the REC obligation is satisfied by alternative compliance payments, the annual increases in Schedule I of subsection 3.2.1 resume, starting from the percentage specified for the year immediately before the current compliance year. A freeze of the minimum cumulative percentage from eligible non-solar technology does not permit a freeze of the minimum cumulative percentage from eligible solar energy resources.

3.3.6 In lieu of standard means of compliance with the RPS, any CREC may pay into the Fund an SACP pursuant to, and in such amounts as stated in, 26 Del.C. §358. If solar alternative compliance payments representing 15% or more of the total number of SRECs are paid into the Fund for each of 2 consecutive compliance years, the minimum cumulative percentage from solar technology specified in Schedule I of subsection 3.2.1 remains at the percentage specified for the immediately preceding year and does not increase from that percentage until a year passes during which less than 15% of the SREC obligation is satisfied by solar alternative compliance payments. After the year in which less than 15% of the total SREC obligation is satisfied by solar alternative compliance payments, the annual increases set forth in Schedule I of subsection 3.2.1 resume, starting from the percentage specified for the year immediately before the current compliance year. A freeze of the minimum cumulative percentage from solar technology does not freeze the minimum cumulative percentage from eligible energy resources.

3.3.7 The Commission Staff shall notify the CREC of any compliance deficiencies within 165 days of the close of the current Compliance Year. If the CREC is found to be deficient by the Commission Staff, the CREC shall be required to pay the appropriate ACP or SACP, according to subsections 3.3.5 and 3.3.6. All such payments shall be due within 30 days of notification by the Commission Staff. Upon receipt of payment, the CREC shall be found to be in compliance for that given year.

3.3.8 All compliance payments, made by a CREC, shall be payable to the Delaware Green Energy Fund and sent to the Commission.

History

11 DE Reg. 1670 (06/01/08)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
10 DE Reg. 151 (07/01/06)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
15 DE Reg. 1625 (05/01/12)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)

26 Del. Admin. Code § 3008-4.0 Recovery of Costs

4.1 A CREC may recover, through a non-bypassable surcharge actual dollar for dollar costs incurred in complying with the State of Delaware's RPS, including any such costs for preexisting CREC contracts that predate February 10, 2021 (i.e., the passage of Senate Bill 33), except that any compliance fee assessed pursuant to subsections 3.3.5 and 3.3.6 shall be recoverable only to the extent authorized by subsection 4.2.

4.2 A CREC may recover any ACP or SACP if the payment of an ACP or SACP is the least cost measure to ratepayers as compared to the purchase of RECs and SRECs to comply with the RPS; or if there are insufficient RECs and SRECs available for the CREC to comply with the RPS.

4.3 Any cost recovered under this section shall be disclosed to customers at least annually on inserts accompanying customer bills.

4.4 All costs arising out of contracts entered into by a CREC pursuant to 26 Del.C. §1007 (d) shall be distributed among the entire Delaware customer base of such companies through an adjustable non-bypassable charge which shall be established by the Commission. Such costs shall be recovered if incurred as a result of such contracts unless, after Commission review, any such costs are determined by the Commission to have been incurred in bad faith, are the product of waste or out of an abuse of discretion, or in violation of law.

History

11 DE Reg. 1670 (06/01/08)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
10 DE Reg. 151 (07/01/06)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
15 DE Reg. 1625 (05/01/12)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)

26 Del. Admin. Code § 3008-5.0 Miscellaneous

5.1 Under Delaware's Freedom of Information Act, 29 Del.C. Ch. 100, all information filed with the Commission is considered of public record unless it contains "trade secrets and commercial or financial information obtained from a person which is of a privileged or confidential nature." 29 Del.C. §10002(d)(2). To qualify as a non-public record under this exemption, materials received by the Commission must be clearly and conspicuously marked on the title page and on every page containing the sensitive information as "proprietary" or "confidential" or words of similar effect. The Commission shall presumptively deem all information so designated to be exempt from public record status. However, upon receipt of a request for access to information designated proprietary or confidential, the Commission may review the appropriateness of such designation and may determine to release the information requested. Prior to such release, the Commission shall provide the entity that submitted the information with reasonable notice and an opportunity to show why the information should not be released.

5.2 Any End-Use Customer, CREC, Eligible Energy Resource, potential Eligible Energy Resource, Qualified Fuel Cell Provider Project or other interested party to which this Regulation may apply may file a complaint with the Commission pursuant to the Rules of Practice and Procedure of the Delaware Public Service Commission.

5.3 The failure to comply with this Regulation may result in penalties, including monetary assessments, suspension or revocation of eligibility as an Eligible Energy Resource, or other sanction as determined by the Commission consistent with 26 Del.C. §205(a), §217, and §1019.

History

11 DE Reg. 1670 (06/01/08)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
13 DE Reg. 952 (01/01/10)
14 DE Reg. 1241 (05/01/11)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
11 DE Reg. 1670 (06/01/08)
12 DE Reg. 1110 (02/01/09)
14 DE Reg. 1241 (05/01/11)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
10 DE Reg. 151 (07/01/06)
11 DE Reg. 1670 (06/01/08)
14 DE Reg. 1241 (05/01/11)
15 DE Reg. 1625 (05/01/12)
16 DE Reg. 790 (01/01/13)
22 DE Reg. 525 (12/01/18)
24 DE Reg. 1014 (05/01/21)
25 DE Reg. 541 (11/01/21)

3010 Integrated Resource Planning for the Provision of Standard Offer Service by Delmarva Power & Light Company

26 Del. Admin. Code § 3010 Integrated Resource Planning for the Provision of Standard Offer Service by Delmarva Power & Light Company

Public Service Commission

3010 Integrated Resource Planning for the Provision of Standard Offer Service by Delmarva Power & Light Company

1.0 General

1.1 The reliability of electric service and the security of energy supply are of great importance to the Delaware Public Service Commission (“Commission”), because they are essential services to the citizens of Delaware. This regulation, in support of 26 Del.C. §1007, sets forth the minimum Delmarva Power and Light (“DP&L” or “Company”) Integrated Resource Plan (“IRP” or “the Plan”) requirements needed to ensure a cost effective, price stable, reliable, efficient and environmentally sound energy supply for all Standard Offer Service (“SOS”) customers.

1.2 Nothing in this regulation relieves DP&L from compliance with any requirement set forth under any other regulation, statute, or order. Compliance with this regulation meets the minimum IRP requirements. Compliance with this regulation does not imply IRP approval or automatic cost recovery.

1.3 In accord with 26 Del.C. §1007, DP&L, as the Standard Offer Service Supplier, shall file an IRP on December 1st, 2006 and on the anniversary date of the first filing date every other year thereafter (i.e. 2008, 2010 et seq.). The Company may request and the Commission may change the filing date for good cause shown. These regulations shall apply to all IRPs filed pursuant to 26 Del.C. §1007. These regulations shall not apply to an IRP docket opened prior to the effective date of these regulations.

1.4 The IRP shall be filed in compliance with normal Commission policies and practices.

1.5 The IRP shall identify the year of the filing, the individuals responsible for its preparation and those individuals who shall be available to respond to inquires during the Commission’s review of the plan.

1.6 Because an IRP may contain trade secrets and commercial or financial information, the Company may request that information, required under this Regulation, be classified as confidential, proprietary and/or privileged material. The Company must explain how the material deemed confidential, if disclosed, will cause substantial harm to the competitive position of the Company or other party. The Company must attest that such information is not subject to inspection by the public or other parties without execution of an appropriate proprietary agreement. In requesting such treatment of information the Company is also obligated to file an additional copy of the information, excluding the confidential or proprietary information. The Commission, in accordance with Rule 11, Rules of Practice and Procedure of the Delaware Public Service Commission, effective May 10, 1999, shall treat such information as “confidential, not for public release” upon receipt of a properly filed request. Any dispute over the confidential treatment of information shall be resolved by the Commission, designated Presiding Officer or Hearing Examiner. Confidential utility documents shall be presented under separate seal.

1.7 Commission Recognition of a filed IRP implies only that the IRP is in compliance with the administrative requirements of this regulation and the Electric Utility Retail Customer Supply Act of 2006 (“Act”), 26 Del.C. §1001-1012. The recognition or ratification of an IRP does not confer or imply Commission approval unless so stated by an Order of the Commission. Approval or disapproval of an IRP must be made by the Commission after, at a minimum, Staff’s analysis of and public comment on the proposed IRP. Any specific ratemaking treatment for the IRP or any portions thereof is neither directly nor indirectly guaranteed by virtue of the recognition or ratification.

1.8 The utility shall provide whatever detail and commentary necessary to demonstrate that it has met or exceeded the planning requirements as set forth in this regulation. An effort shall be made to ensure that the IRP is clearly stated and can be readily comprehended by the Commission, State Agencies, and other interested parties. The IRP shall include an Executive Summary.

1.9 Compliance with this regulation is a minimum standard for IRPs. The Company needs to exercise its professional judgment based on its systems and customer needs. The Company shall include all information that assists the reader to fully understand the IRP concept and the Company’s IRP to meet SOS energy needs.

1.10 This regulation requires the maintenance and retention of supply resource planning data and the reporting of IRP achievements on an annual basis starting in 2009 to the Commission, Governor and General Assembly. The Company shall retain such data, consistent with Federal data retention guidelines and make it available for further review as necessary.

1.11 The Company shall submit a total of 14 copies of its IRP - eight (8) copies to the Commission, two (2) copies to the Controller General’s office, two (2) copies to the Office of Management and Budget; two (2) copies to the Division of the Public Advocate and two (2) copies to the Energy Office/DNREC. The Commission may request up to six (6) additional copies of combined and common filings as may be necessary for review.

1.12 These Integrated Resource Planning Regulations shall be effective for IRP dockets opened after the effective date of these regulations and may be reviewed, revised, or extended as necessary to ensure continued compliance with 26 Del.C. §1001-1012 and to ensure adequate SOS energy supply.

1.13 Failure of the Company to file an IRP or to provide progress reports as required may subject the Company to the penalty and remedial provisions of the Delaware statute (26 Del.C. §1019).

1.14 The Company shall make the full IRP, including any appendices or other supporting materials, available to the general public on its web site and shall update these materials on the Company’s web site to remain current with all subsequent updates, revisions or other changes made to the IRP by the Company.

2.0 Definitions

The following words and terms, as used in these regulations, shall have the following meanings, unless the context clearly indicates otherwise.

“Brownfield” means any vacant, abandoned, or underutilized real property the development or redevelopment of which may be hindered by the reasonably held belief that the real property may be environmentally contaminated.1

“Capacity” means the maximum power capability of a piece of equipment. For example, a generating unit might have a rated capacity of 50 megawatts.

"Commission" means the Delaware Public Service Commission.

“Commission Approval” means that if the Company requests and the Commission approves specific policies, contracts or guidelines that are attached to the IRP for rate making purposes. Certain policies, contracts, or guidelines previously approved by the Commission will not need additional Commission approval in the IRP unless materially changed.

“Commission Recognition” means that within 45 days after the Company has filed its IRP the Commission finds that the plan is administratively complete in fulfilling the requirements of the rules and regulations.

“Commission Ratification” means that after the completion of the regulatory process, including analysis by Staff and input from the public and other parties, the Commission finds that the IRP is not unreasonable and appears to be in the best interest of the ratepayers. Any specific ratemaking treatment for the plan or any portions thereof is neither directly nor indirectly guaranteed by virtue of the ratification.

"Conservation" means any reduction in electric power consumption that results from improved efficiency, avoidance of waste, reduced consumption, or other energy usage reductions that may result from installing new equipment, modifying existing equipment to improve efficiency, adding insulation or changing behavior patterns.

“Customer-Sited Generation” means a generation unit that is interconnected on the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or part of the metered consumption of the end-use customer.

“Demand Response (“DR”)” means programs that are designed specifically to reduce electricity demand during periods of supply constraint. These programs do not necessarily reduce total annual energy consumption.

“Demand-Side Management (“DSM”)” means cost effective energy efficiency programs that are designed to reduce customers’ electricity consumption, especially during peak periods.2

“DNREC” means the Delaware Department of Natural Resources and Environmental Control

"DP&L" or “Company” means Delmarva Power & Light Company, Inc. or its successor organizations.

“Energy” means electrical energy. In this sense, energy is a measure of the quantity of units of electricity used in a given time period, measured in megawatt- hours.

“Environmental Benefit” means the positive environmental impact minus the negative environmental impact attained by specific actions including, but not limited to, energy generation and distribution, transmission service, conservation, customer-sited generation, DR, or DSM.

“Environmental Impact” means the result of an action, outcome or activity related to the IRP, on natural and physical resources including, but not limited to, wetlands, sea levels, fisheries, air quality, water quality and quantity, public health, climate impacts, land masses, and ground water.

“Externalities” means the social, health, environmental and/or welfare costs or benefits of energy which result from the production, delivery or reduction in use through efficiency improvements, and which are external to the transaction between the supplier (including the supplier of efficiency improvements) and the wholesale or retail customer. Externalities should be quantified and expressed in monetary terms where possible. Those externalities that cannot be quantified or expressed in monetary terms shall nonetheless be qualitatively considered.

“Fuel Diversity” means the utilization of resources to supply energy to SOS customers that are procured in such a way as to diminish the risk of adverse changes in fuel prices for electric generation, either through a mix of electric generating resources that utilize a variety of fuel sources, fuel hedges, Customer-Sited Generation resources, both renewable and nonrenewable, application of appropriate risk management practices, DSM or a combination of these activities and assets.

“Generation Attributes” means non-price characteristics of the electrical energy output of a generation unit including, but not limited to, the units fuel type, geographical location, emissions, vintage and Renewable Energy Portfolio Standards (26 Del.C. §351-363) eligibility.

“Implementation Plan” means an action plan which outlines the short and long term planned actions and contingency plan of the Company to secure necessary energy, capacity, transmission and other appropriate resources as further described in the Integrated Resource Plan.

“Integrated Resource Planning” means the planning process of an Electric Distribution Company that systematically evaluates all available options, including but not limited to: generation, Supply Contracts, transmission and Demand-Side Management programs during the planning period to ensure that the electric distribution Company acquires sufficient and reliable resources over time that meet their customers’ needs at a minimal cost.3

“Integrated Resource Evaluation” means a process within the IRP that considers and compares supply- and demand-side resources to select a final resource mix.

“Integrated Resource Plan (IRP)” means the plan derived from the integrated resource planning process.

“Load Forecast” means the estimated future annual electricity usage that is used to help electric utilities make resource allocation decisions.

“New or Innovative Baseload Technologies” means energy resources using new technologies to generate electricity on a typical round- the- clock basis.

“Nominal Price” means the price paid for a product or service at the time of the transaction that has not been adjusted to reflect the effects of inflation.

“PJM Interconnection, L.L.C. (‘PJM’)” means the Regional Transmission Organization or successor organization that is responsible for wholesale electricity markets and the interstate transmission of electricity throughout a multi-state operating area that includes Delaware.

“Portfolio” or “Resource Portfolio” means the combination of physical assets (e.g. electric generating, self generating, and transmission assets), financial products (e.g. Supply Contracts for energy and related services), market resources (e.g. spot market energy purchases), DSM and DR programs, and Customer-Sited Generation resources, both renewable and non renewable, that the Electric Distribution Company uses to satisfy current and future energy procurement requirements for SOS customers, which is designed to manage the risk of adverse price changes to SOS customers.

“Plan Objectives” means the targets or goals of an IRP needed to measure the impact and/or success of the plan’s actions. Such goals or targets must be definitive, measurable and verifiable. Refer to 1.1 for IRP objectives.

“Price Stability” means the lack of significant variation in either the real price or nominal price paid by SOS customers over the planning period.

“Real Price” means the value after adjusting for inflation. Real price is expressed in constant dollars reflecting buying power relative to a base year.

“Reliability” means the degree of performance of the elements of the bulk electric system that results in electricity being delivered to customers within accepted standards and in the amount desired. Reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply. Electric system Reliability can be addressed by considering two basic and functional aspects of the electric system – Adequacy and Security.

• Adequacy is the ability of the electric system to supply the aggregate electrical demand and energy requirements of customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements.

• Security is the ability of the electric system to withstand sudden disturbances such as electric short circuits or unanticipated loss of system elements.4

• As applied to distribution facilities, Reliability is further described as the degree to which safe, proper and adequate electric service is supplied to customers without interruption.

“Resource Portfolio” means “Portfolio.”

"Retail Competition" means the right of a customer to purchase electricity from a certified electric supplier.

“Scenario Analysis” means a component of integrated resource planning that analyzes and assigns probabilities to a variety of possible future conditions and the options available to deal with them. Its primary purpose is to facilitate better resource planning decisions by assessing and quantifying the economic and other risks related to a particular decision.

"Standard Offer Service (“SOS”)" means the provision of electric supply service by a Standard Offer Service Supplier to customers who do not otherwise receive electric supply service from a certified electric supplier.

"Standard Offer Service Supplier" means the electric distribution company serving within its certificated service territory.

“Supply Contracts” means short or long term power procurement contracts as may be negotiated and agreed upon to meet defined requirements, more specifically for Delaware’s Standard Offer Service customers.

"Transmission Service" means the delivery of electricity from supply sources through transmission facilities to distribution system interconnection points.

“Wholesale Electricity Market” means the various PJM markets in which the purchase and sale of electric energy, capacity, and ancillary services from generators to resellers/wholesale suppliers (who sell to retail customers) takes place at the transmission level.

3.0 General Requirements

3.1 Consistent with the requirements of 26 Del.C. §1007 and this regulation, the Company shall file a new and complete IRP every two years, starting on December 1, 2010 (first even-numbered year after the effective date of these regulations), that meets the following requirements:

3.1.1 The IRP shall provide a framework for comparing a comprehensive resource mix of supply- and demand-side and Transmission Service resource costs and attributes.

3.1.2 The IRP shall utilize a Resource Portfolio in achieving the objectives of the IRP, shall incorporate a Portfolio approach to securing resources and incorporating an analysis of risk versus certainty into the planning process, or absent such a Portfolio approach, the rationale supporting the exclusion.

3.1.3 The IRP process shall provide for regulatory, stakeholder and public input into the development of the IRP in accordance with normal Commission policies and practices.

3.1.4 The IRP shall include provisions for the IRP to be modified from time to time, as may be necessary to conform with any subsequent legislative or regulatory directives.

3.2 The IRP shall at the minimum include the following requirements:

3.2.1 An executive summary with a short description of the utility, its customers, service territory, current facilities, planning objectives, notable areas of departure in the new IRP from the old, citing specific location within the IRP where the new aspects shall be found, Load Forecast, proposed IRP and Implementation Plan.

3.2.2 Established Plan Objectives in quantitative and qualitative terms by which the IRP achievements may be measured and shall not be biased against any particular option. Measures must be ascribed to each objective. The Company must include a summary of the overall process, and models used in developing the IRP.

3.2.3 A description of the load forecast, the assumptions used or implicit in creating the forecast, the range of forecast examined, and the forecast selected for the filing period and a detailed rationale for such selection.

3.2.4 An Integrated Resource Evaluation which shall include a listing of all the options considered to meet the load forecast, identification of those chosen for further evaluation and possible inclusion in the IRP, and a discussion of the rationale for such selections including any key assumptions. This planning information shall include a 10-year planning horizon, starting with the year immediately following the filing year (i.e. filing year of 2010 shall include planning information for years 2011 through 2020).

3.2.5 A Scenario Analysis used to integrate the options into a single resource plan or individual scenario for further review and analysis, to include a listing of the various scenarios considered and any key assumptions.

3.2.6 A description of the process used to develop the proposed IRP, including the assumptions and analysis leading up to the decision and the application of the valuation criteria as specified in section 5.0.

3.2.7 An analysis of the risk and sensitivity of the proposed IRP in comparison to other options also considered and a contingency plan to meet the Plan Objectives should one of the supply, demand or transmission options be either delayed or not realized.

3.2.8 Plans for implementation of the IRP, for no less than five (5) years, starting with the year immediately following the filing year.

4.0 Load Forecast

4.1 The Company shall consider a range of load growth forecasts that include:

4.1.1 Both historical data and future estimates.

4.1.2 Both winter and summer peak demand for total Delmarva Delaware load and Delmarva Delaware SOS load by customer class.

4.1.3 Weather adjustments, including consideration of climate change potential.

4.1.4 Five (5) year historical loads, current year-end estimate and ten (10) year weather adjusted forecast showing individually and aggregated Delmarva Delaware and Delmarva Delaware SOS load, and both Delmarva Delaware and Delmarva Delaware SOS load disaggregated by customer classes, including both capacity (MW) and energy requirements (MWh).

4.1.5 Analyses of how existing and forecast Conservation, DR, DSM, Customer-Sited Generation, various economic and demographic factors, including the price of electricity, will affect the consumption of electric services, and how customer choice under Retail Competition of utility service may affect future loads.

4.1.6 Description of the process the Company used to develop these forecasts. Forecasts shall include the probability of occurrence. Within the forecasting modeling descriptions the Company shall demonstrate how well its model predicted past load data for the prior five (5) years.

5.0 Resource Portfolio Options

5.1 The Company shall include a description of the overall process and the analytical techniques it used to identify its proposed options. The Company shall not rely exclusively on any particular resource or purchase procurement process.

5.2 The Company shall identify and evaluate all reasonable resource options including generation and transmission service, Supply Contracts, both short- and long-term procurement DSM, DR and customer sited generation, even if a particular strategy is ultimately not recommended by the Company. The IRP must show an investigation of all reasonable opportunities for a more diverse supply at the lowest reasonable cost, including consideration of environmental benefits and externalities. The Company shall also provide any hedging guidelines and shall identify any changes from any existing hedging policy. Cost evaluations shall contain a description of each option and an evaluation that considers the economic and environmental value of the following:

5.2.1 Resources that utilize New or Innovative Baseload Technologies;

5.2.2 Resources that provide short or long term Environmental Benefits to the citizens of this State;

5.2.3 Facilities that have existing fuel and transmission infrastructure;

5.2.4 Facilities that utilize existing brownfield or industrial sites;

5.2.5 Resources that promote Fuel Diversity;

5.2.6 Resources or facilities that support or improve Reliability; or

5.2.7 Resources that encourage Price Stability.

5.3 Where Transmission Service is identified as a planning option, the Company shall describe the transmission enhancement, the location, and provide PJM’s assessment of the impact of the proposed transmission asset when available. The IRP shall reflect the current projects included in PJM‘s Regional Transmission Expansion Plan (“RTEP”). The Company shall file with the Commission any PJM revisions or updates to the RTEP immediately after receipt.

5.4 At least 30 percent of the resource mix shall be acquired through the regional Wholesale Electricity Market via a bid procurement or auction process held by DP&L. (Docket No. 04-391.)

5.5 The Company shall also include discussion of known plans to reduce existing physical, contractual or service related Portfolio resources during the IRP planning period.

5.6 The Company shall include a detailed description of its energy efficiency activities in accordance with 26 Del.C. §1020. The Company shall first consider electricity DR and DSM strategies for meeting base load and load growth needs and cost-effective renewable energy resources before considering traditional fossil fuel-based electric supply services to meet their retail electricity supplier obligations as defined in 26 Del.C. §352.

5.7 The Company shall evaluate all technically feasible and cost effective DR improvements. Where non-Company evaluations of DSM and Conservation are available through the Sustainable Energy Utility (“SEU”) (or other organization as requested by the Commission), the Company shall summarize the results and actions taken. The Company shall collaborate and may contract with the SEU to provide services to accomplish the SEU’s Demand Side management plans. The Company, using its independent best judgment, may recommend in the IRP any DSM program first offered to the SEU but rejected by the SEU. Where DR programs are new, the Company shall summarize the anticipated benefits with respect to load reductions and provide supporting material to justify the new program.

5.8 The Company shall collaborate with the SEU and appropriate State Agencies in its evaluation of Customer-Sited Generation resource options. The Company may enter into a contractual relationship with the SEU or other energy service providers to implement a Customer-Sited Generation resource option strategy.

5.9 The Company shall assess the Resource Portfolio options against the set of Plan Objectives and criteria.

6.0 Plan Development

6.1 The Company shall conduct an Integrated Resource Evaluation in formulating its potential plans for supply and demand-side resource scenarios. The Company shall describe the mechanism or process by which the Load Forecast and options have been blended into the various IRP scenarios. In integrating its supply and demand-side resources, the Company shall:

6.1.1 Prepare an evaluation that takes into consideration the life expectancy of the resource, if the resource provides capacity and/or energy, any improvements to system Reliability, the dispatchability of the source, any lead time requirements, the flexibility of the resource, the Generation Attributes of the resource, the efficiency of the resource, and the opportunities for customers’ participation. The valuation shall assess the probability of securing the options according to modeling information used, including any key assumptions. The Company shall provide the estimated energy and capacity impacts for each option and the rationale behind the estimate.

6.1.2 Prepare a contingency plan that shall include a discussion of how the Company might alter the proposed IRP in the future if the key planning assumptions used to develop the proposed IRP in the future turn out to be different than what was assumed in preparing the proposed IRP.

6.1.3 Evaluate the cost-effectiveness of the options from the perspectives of the utility and the different classes of ratepayers. Any cost evaluation should be based on real prices, the Company, should it so choose also may provide a cost evaluation using nominal prices.

6.1.4 Include a current evaluation, detailing and giving consideration to environmental benefits and externalities associated with the utilization of specific methods of energy production. This evaluation need not be based on original research by the Company and may rely on published research and peer reviewed scientific and/or medical studies commonly available. To the extent that any reliable, relevant peer reviewed published research and scientific and/or medical studies commonly available include life cycle analyses encompassing energy extraction, transport, generation and/or use, the Company shall include such research and studies in its evaluation.

6.1.5 The IRP shall not include any assumptions that externalities are adequately addressed by either the fact that the IRP meets the Renewable Energy Portfolio Standards, satisfies the Energy Efficiency Resources Standards, or that the generating units to be utilized comply with existing environmental regulations. This rule does not, however, preclude a potential conclusion that the Renewable Energy Portfolio Standards or Energy Efficiency Resources Standards in effect at the time adequately address externalities.

6.1.6 Evaluate the financial, competitive, reliability, and operational risks associated with the options recommended by the IRP and how these risks may be mitigated over the 10 year planning period. Each candidate plan shall include a discussion of the likelihood of the occurrence of such risks.

6.1.7 For the options included in the proposed plan identified in the IRP, the IRP shall include an analysis of the fuel risk associated with the proposed Resource Portfolio and how such fuel risk will be mitigated when the proposed IRP is implemented.

6.1.8 Perform sensitivity analyses on each of the candidate plans to include variations in key assumptions and to assess the likelihood of planned outcomes. The sensitivity analyses shall include among other analyses the impact of proposed or existing rules and regulations on a local, regional or national level related to climate change.

6.2 The Company shall forward a copy of the IRP to DNREC and seek input into externalities, including but not limited to, health effects.

6.3 In developing candidate plans, special attention shall be given to ensuring consistency between the IRP and typical rate- making processes. While the ultimate consumer price associated with the plan is important, the stability of rates and other factors as described in Section 5.2 need to be considered in any candidate plan selection.

7.0 Proposed Plan Selection.

7.1 The Company shall select and file the proposed IRP that is the most consistent with the criteria set forth in 26 Del.C. §§1007, 1020 and this Regulation. The Company shall provide a description of the options recommended for inclusion in the proposed IRP, including a description of the mechanism or process used for valuing each option. The Company shall describe the rationale behind its selection, including any modeling or methodology used as the basis for selection of the proposed IRP.

7.2 In filing the proposed IRP, the Company shall provide at a minimum a five (5) year forecast of supply rates by customer class that would be anticipated based on the IRP planning assumptions and recommended procurement strategy.

8.0 Implementation Plan

8.1 As part of the IRP, the Company shall file a plan needed to implement the IRP. Such Implementation Plan shall be a five (5) year action plan outlining the resource decisions intended to implement the IRP. The Implementation Plan shall include:

8.1.1 All actions to be taken in the first two (2) years and outline actions anticipated in the last three (3) years.

8.1.2 For IRPs filed on or after December 1, 2010, a status report of the specific actions contained in the previous Implementation Plan, including what risk assumptions were made and what actually occurred.

8.1.3 Schedule of key activities related to the IRP implementation.

9.0 Review and Comment

9.1 As part of the process commencing in 2009 and continuing on an annual basis, the Company shall submit a report to the Commission, the Governor and the General Assembly detailing their progress in implementing their IRPs.

9.2 The Commission, interested State Agencies, interested parties and the general public shall be provided an opportunity for review and comment on the Company’s IRP filings. The Commission shall seek input from DNREC on the issue of externalities and environmental benefits due to emissions, as the result of the proposed IRP.

9.3 Subsequent to the IRP recognition and after input from the public, and other parties, the Commission may ratify the filing of the Company’s IRP and its compliance with these regulations. Ratification that the IRP complies with the statute shall not guarantee a particular ratemaking treatment of future resource acquisitions. To the extent that the Commission determines that the IRP is not compliant with the statute or is unlikely to meet the goals of the statute, the Company shall revise its IRP to meet these requirements. Rate treatment shall be addressed in rate or other proceedings as filed by the utility or as initiated by the Commission.

9.4 The Integrated Resource Plan may be used as a factor in rate cases to evaluate the performance of the utility. Reports provided under this Regulation are subject to annual review and audit by the Commission and interested State Agencies. The Company must maintain sufficient records to permit a review and confirmation of material contained in all required reports.

13 DE Reg. 953 (01/01/10)

3011 Rules for Certification of Electric Transmission Suppliers

26 Del. Admin. Code § 3011-1.0 Definitions

The following words and terms, when used in this regulation, have the following meanings unless the context clearly indicates otherwise:

"Applicant" means a person or entity seeking to obtain an Electric Transmission Supplier Certificate.

"Commission" means the Delaware Public Service Commission.

"Delmarva" or "DPL" means Delmarva Power & Light Company or its successor(s).

"DPA" means the Delaware Division of the Public Advocate.

"Electric transmission facility" or "transmission facility" means electric facilities that are located in Delaware, including those in offshore waters and integrated with onshore electric facilities, and owned by a public utility that operate at voltages above 34,500 volts, and used to transmit and deliver electricity to customers, including any customers taking electric service under interruptible rate schedules as of December 31, 1998, up through and including the point of physical connection with electric facilities owned by DPL.

"Electric Transmission Supplier Certificate" means a certificate of public convenience and necessity under 26 Del.C. §203E granted by the Commission to an applicant which fulfilled the Commission's certification requirements and which authorizes the applicant to construct, operate, own and maintain transmission facilities. The Commission Order approving an applicant's application for certification as an electric transmission utility shall serve as the Electric Transmission Supplier Certificate.

"Electric transmission utility" means a person or entity granted an Electric Transmission Supplier Certificate by the Commission, or otherwise exempt under 26 Del.C. §203A(a)(3), which owns and/or physically operates an electric transmission facility in Delaware.

"Person" means a natural person, a corporation, partnership, association, public trust, joint stock company, joint venture, or other group of persons, whether incorporated or not; a trustee or receiver of the foregoing; a municipality or other political subdivision of the State of Delaware; and any other governmental agency or any officer, agent, or employee of such agency.

"PJM Interconnection, L.L.C." or "PJM" means the Regional Transmission Organization ("RTO") with functional control over electric transmission facilities throughout a multi-state area including Delaware, or its successor(s).

"Public utility" means every individual, partnership, association, corporation, joint stock company, agency or department of the State or any association of individuals engaged in the prosecution in common of a productive enterprise (commonly called a "cooperative"), their lessees, trustees or receivers appointed by any court whatsoever, that now operates or hereafter may operate for public use within this state, (however, electric cooperatives shall not be permitted directly or through an affiliate to engage in the production, sale, or distribution of propane gas or heating oil), any natural gas, electric (excluding electric suppliers as defined in §1001 of this title), water, wastewater (which shall include sanitary sewer charge), telecommunications, (excluding telephone services provided by cellular technology or by domestic public land mobile radio service) service, system, plant or equipment.

"Regional Transmission Expansion Plan" or "RTEP" means the process by which PJM approves new transmission projects.

"Regulations" means the Commission's Regulations for Certification of an Electric Transmission Utility. (26 DE Admin. Code 3011, et seq.)

"Secretary" means the Secretary of the Commission, or any employee of the Commission designated as such by the Secretary and authorized by the Executive Director.

"Staff" means full-time professional employees of, and outside counsel and consultants retained by, the Commission who render advice to the Commission.

"State" means the State of Delaware.

History

27 DE Reg. 896 (05/01/24)
22 DE Reg. 80 (07/01/18)
27 DE Reg. 896 (05/01/24)

26 Del. Admin. Code § 3011-2.0 Certification of Electric Transmission Suppliers

2.1 Before an applicant may begin the business of providing electric transmission facilities, such applicant must obtain an Electric Transmission Supplier Certificate from the Commission.

2.2 Certification Requirement. All applicants shall file with the Commission an original and 5 copies of an application for an Electric Transmission Supplier Certificate or comply with the electronic filing requirements of 26 DE Admin. Code 1001. Such application shall contain all the information and exhibits hereinafter required and may contain such additional information as the applicant deems appropriate to demonstrate to the Commission that it possesses the technical, financial, managerial, and operational ability to adequately serve the public consistent with applicable State laws. Applications shall contain at least the following information:

2.2.1 Identifying Information. The legal name and, if applicable, tax identification number or employer identification number of the applicant, as well as the trade name(s) under which the applicant proposes to do business in Delaware. List any other names under which the applicant or its affiliated interests have previously done business in Delaware;

2.2.2 Certifications. Certification(s) issued by the state of formation or incorporation certifying that the applicant is in good standing and qualified to do business in that state;

2.2.3 Authorization. Documentation from the Delaware Secretary of State and the Delaware Division of Revenue, issued within 90 days of filing, that the applicant is legally authorized and qualified to do business in the State;

2.2.4 Registered Agent. The name and post office address of a Registered Agent, pursuant to 26 Del.C. §401, within the State upon whom service of any notice, order or process may be made;

2.2.5 Leadership. The names, titles, addresses, and telephone numbers of the applicants' principal officers, directors, partners, or other similar officials;

2.2.6 Corporate Structure. A description of the applicant's corporate structure, including all parent, affiliated, and subsidiary companies. Include a graphical depiction of such structure;

2.2.7 Contact Information. The name, title, e-mail address (if applicable), mailing address and telephone number of the applicants and the regulatory contact person responsible for the applicant's Delaware operations;

2.2.8 Attorney. The name, address, telephone number, and e-mail address of the applicant's attorney. If the applicant is not using an attorney, explicitly state so;

2.2.9 Consent to Jurisdiction. A statement consenting to the jurisdiction of the Delaware courts for acts or omissions arising from the applicant's and its agent's activities in the State;

2.2.10 Criminal Activities. A statement detailing any criminal activities, except for misdemeanors or lesser violations, of which the applicant or any of its affiliated interests, officers, and directors (and prior officers and directors who left the applicant's employ less than 3 months before the filing of the application) have been convicted. Any criminal activity disclosure shall include a copy of any order of conviction and restitution.

2.2.11 Project Description. A complete description of any projects that the applicant intends to develop in Delaware to include:

2.2.11.1 A detailed description of the electric transmission facilities for which the applicant seeks a Certificate

2.2.11.2 One-line diagrams showing all electric transmission facilities to be constructed

2.2.11.3 A description of the construction design to include a pictorial representation of design type;

2.2.11.4 An aerial map showing the proposed location and route of planned electric transmission facilities;

2.2.11.5 A cost estimate for the project;

2.2.11.6 Copies of any analysis undertaken by the applicant or of which applicant is aware that demonstrates the reliability-based or economics-based need for the electric transmission facilities and any impacts on electricity costs, including transmission, energy, capacity, and ancillary services charges within Delaware.

2.2.12 Entity Designation. A copy of documentation certifying the applicant as the PJM entity designated to construct new electric transmission facilities. If the applicant is not a PJM designated entity, the applicant must submit additional information under subsections 2.2.13, 2.2.14 and 2.2.15.

2.2.13 Financial Information. If the applicant is not a PJM Designated Entity, evidence of long-term financial viability of the applicant to provide service in the State, including:

2.2.13.1 If publicly traded, the applicant's:

2.2.13.1.1 Certified financial statements current within 12 months of the filing; and

2.2.13.1.2 Its most recent annual report to shareholders and SEC Form 10-K (or a link to the report on the SEC website);

2.2.13.2 If not publicly traded, the applicant's accounting statements, including balance sheet and income statements, audited financial statements, bank account statements, tax returns or other indicia of financial capability, or, if applicable, the certified financial statements of a publicly traded parent;

2.2.13.3 Applicants submitting European-style financial statements shall include a statement of similarity;

2.2.13.4 Staff may request other indicia of financial capability.

2.2.14 Bankruptcy. If the applicant is not a PJM Designated Entity, the applicant shall disclose whether it, or any of its affiliated interests, or any current or previous officer, director, or manager, has filed for bankruptcy in the past 24 months;

2.2.15 Operational Experience. If the applicant is not a PJM Designated Entity, evidence of technical and operational fitness to construct and operate electric transmission facilities, including:

2.2.15.1 A description of the entity’s experience:

2.2.15.1.1 A description of the entity's experience in constructing and operating electric transmission facilities in other states and an assessment of its long-term viability as an electric transmission utility; and

2.2.15.1.2 A description of the entity's experience with any transmission project in the PJM region.

2.2.15.2 Documentation on the need for and the impact of the proposed transmission facility on the safe, adequate and reliable operation or delivery of electric supply services; and

2.2.15.3 Detailed information on the engineering and technical design of the proposed transmission facility.

2.2.15.4 Staff may request other indicia of technical or operational fitness.

2.2.16 Economic Impact. The applicant's assessment of the impact of granting the Electric Transmission Supplier Certificate on the State's economy and the benefits to the State's ratepayers.

2.2.17 The applicant's assessment of the impact of granting the Certificate of Public Convenience and Necessity on the health, safety and welfare of the general public.

2.2.18 Other Proceedings. A list of states or federal jurisdictions in which the applicant or any of its affiliated interests has:

2.2.18.1 Been denied approval to construct or operate electric transmission;

2.2.18.2 Been found to be in violation of a state's laws, rules, or regulations related to the provision of electric transmission service;

2.2.18.3 Had its electric transmission authority revoked, modified, or suspended; or

2.2.18.4 Had any other adverse judicial or regulatory action pertaining to the provision of electric transmission, including any formal docketed complaints filed against:

2.2.18.4.1 The applicant;

2.2.18.4.2 Any of the applicant's affiliated interests;

2.2.18.4.3 Any officer, principal or director of the applicant; or

2.2.18.4.4 Any prior officer, principal or director serving in that capacity at the time of the judicial or regulatory action; and

2.2.18.5 Entered into a stipulation or consent decree in a formal docketed proceeding in the past 5 years concerning its electric transmission construction or operation in which the entity agreed to pay a civil penalty, provide any restitution, or make changes to operations;

2.2.19 The applicant shall provide a copy of any document, order, or decree identified in response to subsection 2.2.18;

2.2.20 A copy of any settlement, adjudication, or court order with respect to an action filed by a state Attorney General, the Federal Trade Commission, or U.S. Department of Justice concerning the applicant's participation in electric transmission projects;

2.2.21 Other Information. The Commission or its staff may consider any other information submitted by the applicant if it can show the financial, operational, managerial, and technical abilities of an applicant.

2.2.22 Verification of Application. The application must be accompanied by a signed, notarized verification of a principal or officer of the applicant stating that all information in the application is true and correct as filed to the best of the principal's or officer's belief. Where the applicant is a corporation or an association, the verification shall be signed by an officer thereof and notarized.

2.2.23 Notice. Each applicant shall publish notice of the filing of its application in accordance with 26 Del.C. §102A.

2.2.24 Application Fee. An applicant for a Certificate of Public Convenience and Necessity to operate as a public utility shall submit a non-refundable application fee of $750 with the application.

2.2.25 Incomplete or Abandoned Applications. The Commission may reject an application that is not complete or that does not contain subsequent information requested by the staff within 4 months of a failure by the applicant to respond to such requests.

2.2.26 Waiver of Certification Requirements. Upon the request of any applicant, the Commission, upon notice and opportunity for comment, may, for good cause, waive any of the requirements of these regulations that are not required by statute. The waiver may not be inconsistent with the purpose of these regulations or 26 Del.C. §1001 et seq.

2.2.27 Review of the Application. After the close of the comment period, staff shall make a recommendation to the Commission to approve, conditionally approve or deny the application. The Commission may choose to approve, approve with conditions, modify, or deny a Certificate of Public Convenience and Necessity to an applicant where it finds that doing so is in the public interest. The application may be denied if the Commission finds the applicant is unwilling or unable to provide safe, adequate and reliable services.

2.2.28 Timing of Application Decision. The Commission shall act on an application within 90 days of the submission of a completed application as defined by PSC staff. At Commission discretion, the application time period may be extended an additional 90 days.

2.2.29 Material Change in Application Information. Applicants shall inform staff of any material changes in any information submitted in the application that occur from the time the application is submitted to the time the Commission considers the application. The failure to provide such notice within 10 business days after the change may be grounds for rejection of the application.

2.2.30 Accuracy of Information. Failure to provide accurate and factual information, or the submission of false or misleading information, or the omission of material information in any communication with staff or the Commission, may be grounds for rejection of the application. Nothing in this section shall preclude the Commission or the State of Delaware from undertaking any action to address the provision of false information in an application.

2.2.31 Terms of Electric Transmission Supplier Certificate are valid until revoked by the Commission or relinquished by the applicant after the requisite notice to the Commission.

2.2.31.1 The transfer of an Electric Transmission Supplier Certificate to other than a Delaware approved public utility is prohibited. Any requested transfer to a Delaware approved public utility requires application, notice and approval of the Commission.

2.2.31.2 No electric transmission entity shall cease operation of its facilities within the State without providing at least 60 days written notice to the Commission.

2.2.32 Revocation or Suspension. The Commission may, for good cause, undertake to suspend or revoke an Electric Transmission Supplier Certificate held by an electric transmission utility. Good cause includes:

2.2.32.1 Material noncompliance by the holder of the Certificate with any conditions imposed by the Commission or any Commission order or rule; or

2.2.32.2 A finding by the Commission that the holder of the Certificate failed in a material manner to provide safe, adequate and reliable transmission service.

History

27 DE Reg. 896 (05/01/24)
22 DE Reg. 80 (07/01/18)
27 DE Reg. 896 (05/01/24)

26 Del. Admin. Code § 3011-3.0 Reports to be Provided to the Commission and DPA

If an applicant is granted an Electric Transmission Supplier Certificate, the applicant shall provide semi-annual reports to the Commission and the DPA regarding the status of construction of the applicant's projects in the State of Delaware until such projects are placed in service. Such updates shall include budgeted vs. actual costs and the expected in-service date of the project.

History

27 DE Reg. 896 (05/01/24)
22 DE Reg. 80 (07/01/18)
27 DE Reg. 896 (05/01/24)

26 Del. Admin. Code § 3011-4.0 Other General Rules

These regulations shall not be construed to require any public utility to secure an Electric Transmission Supplier Certificate for any construction, modifications, upgrades, or extensions within the perimeter of any territory already served by it.

History

27 DE Reg. 896 (05/01/24)
22 DE Reg. 80 (07/01/18)
27 DE Reg. 896 (05/01/24)

4000 Telecommunications Regulations

4001 Rules for the Provision of Telecommunications Services (Dockets 10 and 45)

26 Del. Admin. Code § 4001 Rules for the Provision of Telecommunications Services (Dockets 10 and 45)

Effective: June 11, 2020

PART A

CERTIFICATION AND REGULATION OF CARRIERS

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-1.0 Definitions

"Basic Service" shall mean switched access service.

“Carrier” shall mean any person or entity offering to the public Telecommunications service that originates or terminates within the State of Delaware. The term "Carrier" does not include:

"Competitive Service" shall mean any service that is not classified as a Basic Service.

“CPCN” shall mean a Certificate of Public Convenience and Necessity issued by the Commission.

“Commission” shall mean the Public Service Commission of Delaware.

“Local Telecommunications Exchange Service” shall mean non-toll, intrastate Telecommunications Services provided over a Local Exchange Carrier’s network, including, but not limited to, exchange access services and basic local services.

“Rules” shall mean these Rules governing the provision of telecommunications services in Delaware.

“Telecommunications” shall mean the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form and content of the information as sent and received.

“Telecommunications Service” shall mean the offering of telecommunications for a fee directly to the public within the State of Delaware (originating or terminating within the State, without regard to how the Carrier decides to route the traffic), or to such classes of users as to be effectively available to the public, regardless of the facilities used. "Telecommunications Service" does not include:

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-2.0 Applicability

These Rules shall apply to all Carriers, as defined by these Rules, and shall be construed consistently with Section 3.0 of these Rules.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-3.0 Application With Other Rules or Regulations

Rules of Practice and Procedure. The practice and procedure governing any proceedings required or authorized by these Rules shall be as set forth by the Commission’s Rules of Practice and Procedure adopted in PSC Docket No. 99-9, by Order No. 5057 (April 6, 1999) as the same may be hereafter from time to time amended. See 1001 General Regulations.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-4.0 Certification

4.1 Certification Requirement. No person or entity shall offer public intrastate or local exchange telecommunications service within the State of Delaware without first obtaining from the Commission a Certificate of Public Convenience and Necessity authorizing such service. A Carrier offering telecommunications service within the State of Delaware without a CPCN duly issued by this Commission is acting unlawfully and shall immediately cease offering such service until a CPCN is granted.

4.2 Application. An applicant for a CPCN shall file with the Commission in the format described in 26 DE Admin. Code §1001-1.6.3, together with the statutory filing fee set forth in 26 Del.C. §114, as the same may from time to time be amended. Such application shall contain all the information and exhibits hereinafter required and may contain such additional information as the applicant deems appropriate to demonstrate to the Commission that it possesses the technical, financial and operational ability to adequately serve the public and that the public convenience and necessity requires or will require the operation of such business. If the applicant fails to provide the required information and exhibits within 6 months of the application, the Commission may take action to close this docket and the applicant will forfeit its application fee.

4.3 Notice. The applicant shall serve a notice of the filing of such an application upon the Public Advocate, and to such other entities as may be required by the Commission. The applicant shall provide public notice of the filing of the application in accordance with 26 Del.C. §102A.

4.4 Business License and Registered Agent. An applicant shall demonstrate that it is legally authorized and qualified to do business in the State of Delaware, including that it has received authorization to do business issued by the Secretary of State. An applicant shall provide the name, address, and telephone number of its Delaware Resident Agent. Following certification, all Carriers shall promptly notify the Commission in writing of changes of Resident Agent or the name, address, or telephone number thereof.

4.5 Initial Tariffs or Price Lists. An applicant shall file proposed initial rates, prices, rules, regulations, terms and conditions of service for switched access services. Any revisions to this tariff must be filed with the Commission. An applicant need not file tariffs or price lists for other services.

4.6 Demonstration of Fitness. An applicant shall be required to demonstrate to the Commission its financial, operational, and technical ability to render service within the State of Delaware. Such demonstration shall include, but is not limited to, the following:

4.6.1 The applicant’s certified financial statements current within 12 months of the filing, and, where applicable, the most recent annual report to shareholders and SEC Form 10-K;

4.6.2 A brief narrative description of the applicant’s proposed operations in Delaware, any present operations in all other states, and states for which service applications are pending;

4.6.3 A description of the relevant operations experience of applicant’s personnel principally responsible for the proposed Delaware operations.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-5.0 Abandonment or Discontinuation of Service

A Carrier may abandon or discontinue Competitive Services, in whole or in part, at any time; provided, however that such Carrier shall provide the Commission with contemporaneous notice of abandonment or discontinuance of all of its Competitive Services in the State. A Carrier may abandon or discontinue Basic Services in accordance with the terms of 26 Del.C. §203(A)(d).

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-6.0 Services to be Provided By Carriers Providing Local Telecommunications Exchange Service

6.1 Any Carrier providing local telecommunications exchange service shall provide to its customers:

6.1.1 Access to 911 enhanced emergency system;

6.1.2 Access to telecommunications relay service.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-7.0 Regulation

7.1 Except for the determination of rate changes, the offering of Basic Services is subject to the provisions of Subchapters I and V of Chapter I of Title 26, §§201, 202, 203A(c), 204, 206, 212, 217, 218, and 222 of Title 26, and all Commission procedures, rules, and regulations except to the extent inconsistent with Subchapter VII of Chapter I of Title 26.

7.2 Rate changes for Basic Services do not require Commission approval.

7.3 Rates for switched access service must be established according to prevailing federal jurisdiction.

7.4 Competitive Services are not subject to tariff or other filing requirements and Carriers are not required to provide notice to the Commission for any new competitive service.

7.5 Commission approval is not required for any reorganization or merger, mortgage or transfer of property, issuance of securities, assumption of obligation of another, or transfer of control of a Carrier.

8.0-12.0 Reserved

PART B

CUSTOMER ELECTION OF PREFERRED CARRIER

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-13.0 Additional Definitions

For purposes of Sections 13.0 through 19.0, in addition to the Definitions set forth in Section 1.0, the following definitions shall apply:

Preferred Carrier shall mean the Carrier providing service to the customer at the time of the adoption of these Rules, or such Carrier as the customer thereafter designates as the customer’s Preferred Carrier.

Preferred Carrier Change Order shall mean generally any order changing a customer’s designated Carrier for local exchange service, intraLATA intrastate toll service or both.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-14.0 Applicability

Any Carrier offering intrastate service, local exchange service, or both for public use within the State of Delaware, including the ILEC, Bell Atlantic-Delaware, Inc., shall be subject to the provisions of Sections 13.0 through 19.0.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-15.0 Verification of Orders for Telecommunications Service

No Carrier shall submit a Preferred Carrier Change Order unless and until the Order has been first confirmed in accordance with 1 of the procedures set forth in 47 C.F.R. § 64-1120.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-16.0 Letter of Agency Form and Content

A Carrier may use a letter of agency to obtain written authorization or verification of a customer’s request to change his or her Preferred Carrier selection. A letter of agency that does not conform with the requirements set forth in 47 C.F.R. § 64.1130 is invalid.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-17.0 Submission and Execution of Changes in Customer Carrier Selections

Submission and execution of changes in customer carrier selection shall comply with 47 C.F.R. § 64.1120.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-18.0 Preferred Carrier Freezes

A Preferred Carrier freeze prevents a change in a customer’s Preferred Carrier selection unless the customer has given the Carrier from which the freeze was requested his or her express consent. All Carriers who offer Preferred Carrier freezes must comply with the provisions of 47 C.F.R. § 64.1190.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

26 Del. Admin. Code § 4001-19.0 Customer Protection

19.1 Procedures To Be Followed By The Customer. A customer who believes his or her Carrier or Carriers have been changed, without the customer’s authorization, that the customer has been billed for charges not authorized by the customer, or both, should first attempt to resolve the matter with the Carrier or Carriers responsible for the unauthorized changes, charges, or both. If the customer is not satisfied with the resolution offered by the Carrier, the customer may file a complaint with the Commission.

19.2 Procedures To Be Followed By Carriers. A Carrier who is informed by a customer that the customer believes the Carrier has caused or allowed a change in the customer’s Carrier without the customer’s authorization, or that the Carrier has caused or allowed the customer to be billed for charges not authorized by the customer shall attempt to resolve the complaint promptly and in good faith. If the customer and Carrier are not able to resolve the complaint, then the Carrier shall inform the customer orally or in writing of the right to file a complaint with the Commission and shall provide the customer with the Commission’s address and telephone number.

19.3 Carriers to Maintain Record of Complaints. Each Carrier shall maintain a record of the complaints received by it alleging that the Carrier has caused or allowed a customer’s Carrier to be changed without the customer’s authorization or has caused or allowed the customer to be billed for charges not authorized by the customer. The Carrier shall maintain the record of each complaint for a period of 2 years following initial notification of the complaint. Upon request by the Commission or its staff, a Carrier shall furnish a copy of its complaint records and such other information as the Commission Staff may require. A Carrier’s complaint records shall include at least the following information:

19.3.1 Name, address, and telephone number of complainant and the date and manner received by the Carrier; and

19.3.2 A chronological summary of the dispute and its current status, including any resolution and date of resolution.

19.4 Refund and Penalties. In the event the Commission determines that a Carrier has caused a customer’s Carrier for a service to be changed without the customer’s authorization obtained in exact compliance with these Rules, or has caused the customer to be billed for charges imposed without exact compliance with these Rules, then the Commission shall require the Carrier to promptly refund or void to the customer any charges the Carrier has caused to be billed as a result of the unauthorized change or charge, or any other remedies available for violation of these Rules as allowed by law. 26 Del.C. §924(c). The Commission’s remedies are in addition to those required under 47 C.F.R. § 64.1170 to the extent the FCC’s remedies have not provided a refund or credit to the subscriber in the amount of 100% of all charges the Carrier caused to be billed as a result of the unauthorized change or charge.

History

18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
9 DE Reg 1390 (03/01/06)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
18 DE Reg. 653 (02/01/15)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
27 DE Reg. 902 (05/01/24)
5 DE Reg. 1265 (12/01/01)
9 DE Reg 1390 (03/01/06)
23 DE Reg. 1045 (06/01/20)
27 DE Reg. 902 (05/01/24)

4002 Regulations Governing Payphone Service Providers in Delaware (Docket 12)

26 Del. Admin. Code § 4002 Regulations Governing Payphone Service Providers in Delaware (Docket 12)

Effective Date: December 1997

Repealed, effective July 11, 2015

History

1 DE Reg. 730 (12/01/97)
19 DE Reg. 71 (07/01/15)

4003 Regulations Governing the Minimum Service Requirements for the Provision of Telephone Service for Public Use within the State of Delaware[Repealed effective 2/11/15]

26 Del. Admin. Code § 4003 Regulations Governing the Minimum Service Requirements for the Provision of Telephone Service for Public Use within the State of Delaware[Repealed effective 2/11/15]

Repealed, effective February 11, 2015

History

18 DE Reg. 653 (02/01/15)

4005 Regulations for the Implementation of the Telecommunications Technology Investment Act (Docket 41) (Repealed)

26 Del. Admin. Code § 4005 Regulations for the Implementation of the Telecommunications Technology Investment Act (Docket 41) (Repealed)

Repealed, effective June 11, 2020.

History

2 DE Reg. 280 (08/01/98)
23 DE Reg. 1048 (06/01/20)

4006 Rules Governing the Deployment of Interim Number Portability Measures in the State of Delaware (Docket 46)

26 Del. Admin. Code § 4006 Rules Governing the Deployment of Interim Number Portability Measures in the State of Delaware (Docket 46)

Public Service Commission

4006 Rules Governing the Deployment of Interim Number Portability Measures in the State of Delaware (Docket 46)

1.0 Definitions

1.1 Interim Number Portability - the provisioning of number portability during the interim period by currently technically feasible methods.

1.2 Interim Period - the interim period shall begin on the date a local exchange carrier receives a request for deployment of interim number portability and ends on the date the local exchange carrier deploys number portability using a long-term database method under 47 C.F.R. § 52.3.

1.3 Local Exchange Carrier - a person that is engaged in the provision of telephone exchange service or exchange access service. For the purposes of this set of rules, such term does not include a person insofar as such person is engaged in the provision of a commercial mobile radio service under 47 U.S.C. §332(c).

1.4 Number Portability - the ability of users of telecommunications services to retain, at the same location, existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications carrier to another.

1.5 Per Cent Market Share - represents a telecommunications carrier’s share in the local exchange telecommunications market. For ”wireline“ telecommunications carriers, market share is calculated by dividing that telecommunications carrier’s total number of active ”wireline“ access lines by the total number of active ”wireline“ access lines in the State of Delaware. For commercial mobile radio service telecommunications carriers, market share is calculated by dividing the sum of the telecommunications carrier’s total number of active ”wireline“ access lines and active telephone numbers by the total number of active ”wireline“ access lines in the State of Delaware.

1.6 Remote Call Forwarding (RCF) - a method whereby a call to a telephone number in one exchange is automatically redirected by the telecommunications carrier’s end office equipment to another telephone number in the same or different exchange on the same or different carrier’s network.

1.7 Telecommunications - the transmission, between or among points specified by the user, of information of the user’s choosing without change in the form or content of the information as sent and received.

1.8 Telecommunications Carrier - a provider of telecommunications services, except that such term does not include aggregators of telecommunications services, as defined in 47 U.S.C. § 226(a)(2).

1.9 Telecommunications Service - the offering of telecommunications for a fee directly to the public, or such classes of users as to be effectively available directly to the public, regardless of the facilities used.

1.10 The Commission - the Delaware Public Service Commission.

2.0 Deployment of Interim Number Portability

2.1 During the interim period, all local exchange carriers shall provide interim number portability as soon as reasonably possible upon receipt of a specific request from another telecommunications carrier.

2.2 Except as the carriers may agree or the Commission may otherwise order under Rules 2.4 and 2.5, all local exchange carriers shall provide interim number portability during the interim period using Remote Call Forwarding.

2.3 The Commission may waive the requirements of Rules 2.1 and 2.2 for a local exchange carrier which demonstrates that Remote Call Forwarding is not a technically feasible method for interim number portability for that local exchange carrier.

2.4 A local exchange carrier may agree to provide interim number portability to a telecommunications carrier utilizing technically feasible methods other than Remote Call Forwarding on mutually agreeable terms, conditions, and charges. A local exchange carrier providing interim number portability under such an agreement shall offer such non-RCF interim number portability methods to other telecommunications carriers upon the same terms, conditions, and charges.

2.5 Upon petition or upon its own motion, the Commission may require that a local exchange carrier provide interim number portability by a technically feasible method other than Remote Call Forwarding or by a combination of technically feasible methods. The providing carrier shall bear the burden of proving that any requested method is technically infeasible.

2.6 Prices for interim number portability shall be set at a level that takes into account the relative inferior quality of the service provided, its interim nature, and the necessity for the development of a competitive market for local exchange services.

COMMENTS: These rules adopt Remote Call Forwarding as the presumptive method for providing number portability during the interim period, now expected to end by late 1998. Staff believes that RCF is a presently technically feasible means. At the same time, Staff acknowledges that RCF, as a method for number portability, has limitations including: (1) its failure to support several custom local area signaling services and other vertical features; (2) the possible degradation of transmission quality; (3) the existence of limits on the number of calls to customers of the same competing service provider that can be handled at any one time; and (4) the need to allocate access charges derived from interexchange carriers between the provisioning local exchange carrier and the recipient end-user carrier. Staff also acknowledges the disagreement among the participants in Regulation Docket 46 as to the viability of RCF for large volume end-user customers. Because of these limitations, this section allows carriers to negotiate and agree to other methods for providing portability. The section also allows the Commission, acting upon request or on its own initiative, to explore ordering other methods of portability if circumstances warrant. If carriers do agree to provide interim portability by other non-RCF methods, the local exchange carrier must offer the same methods to other similarly-situated requesting carriers.

3.0 Cost Recovery Mechanism for Interim Number Portability

Costs

3.1 The mechanisms for the recovery of interim number portability costs set forth in these Rules take into account the relative inferior quality of the methods used for portability, the interim nature of the methods, and the need to develop a competitive market for local exchange services.

3.2 For purposes of the cost recovery mechanism in these Rules, the recoverable costs for providing RCF interim number portability shall be:

(i) the Total Element Run Incremental Cost through (“TELRIC”) of providing interim number portability through RCF, as determined by the Commission under Rule 4.1 or in some other proceeding;

(ii) (in the absence of a determination of TELRIC costs), the following proxies:

Non-Recurring Proxy Costs

Recurring Proxy Costs

$ 5.10 Service Order Charge Per Order

$2.33 Per Number Per Month for 0 to 10 Call Paths

$18.76 Installation Charge, Per Number

$0.40 Per Number Per Month for Each Additional Path.

(Not applicable if RCF is installed with an unbundled loop)

COMMENTS: The first portion of this section provides a calculation of the costs for providing RCF interim number portability, to be used both for calculating the threshold set out below and for the subsequent cost assessments against carriers, if implemented. The rules provide that if the Commission should, either under these Rules or in another proceeding (such as a generic docket or a Statement of Generally Available Terms and Conditions), determine the actual costs for providing RCF number portability, then those actual costs should be used to measure the breach of the threshold and the amounts of recoveries from the other chargeable carriers. However, until such a determination is made, the section provides proxy costs to be adopted for threshold and assessment purposes. The recurring cost proxies have been derived from cost materials submitted by Bell Atlantic-Delaware, Inc. in response to Staff data requests in Regulation Docket No. 46. The non-recurring proxy costs are based on the results of arbitration concerning service order costs in PSC Docket No. 96-204.

Threshold for Cost Assessment and Recovery

3.3 During the interim period, a local exchange carrier may not recover the costs of providing RCF interim number portability under these Rules from other telecommunications carriers until the local exchange carrier’s total costs of providing interim number portability (as defined in Rules 3.2 and 3.2.1) exceed the lesser of:

3.3.1 $50,000; or

3.3.2 one tenth of one percent of the local exchange carrier’s gross annual intrastate revenues.

Post-Threshold Cost Recovery

3.4 If a local exchange carrier’s costs of providing RCF number portability during the interim period exceeds the amounts set forth in Rule 3.3, then the local exchange carrier may thereafter recover a cost assessment from each telecommunications carrier that has, or will, request interim number portability.

3.5 The cost assessment that the local exchange carrier may recover under rule 3.4 from the requesting telecommunications carrier shall be:

The cost (as defined in Rule 3.2) of providing RCF interim number portability to the requesting carrier

times

The requesting telecommunications carrier’s market share as defined in Rule 1.5.

3.6 At the time a local exchange carrier begins to recover the cost assessment from a requesting telecommunications carrier under Rules 3.4 and 3.5, the local exchange carrier may also recover a cost assessment for RCF interim number portability from: (1) those telecommunications carriers that provide end-user wireline access predominantly (over seventy-five percent) by means of the resale of services purchased from that local exchange carrier or (2) those telecommunications carriers that purchase unbundled network elements from the local exchange carrier.

3.7 The cost assessment that the local exchange carrier may recover from each telecommunications carrier described in Rule 3.6 shall be:

.25 (the local exchange carrier’s aggregate costs (as defined in Rule 3.2) for providing RCF interim number portability to all telecommunications carriers during the period)

times

The market share, as defined by Rule 1.5, of the telecommunications carrier providing end-user wireline access by resale or by purchase of unbundled network elements less any direct payment made under Rule 3.5 except that the amount cannot be less than zero.

COMMENTS: This portion of the section creates a cost threshold of the lesser of $50,000 or one tenth of one percent of the local exchange carrier’s intrastate revenues. That threshold must be breached before the local exchange carrier may choose to impose cost assessment on other carriers for RCF interim number portability. If, during the interim period, the costs of RCF number portability to a particular local exchange carrier never exceed the threshold, the costs may not be recovered. Staff adopts the threshold formulation because the threshold amounts appear to be de minimis in relation to an exchange carrier’s gross annual intrastate revenue and any attempt to collect portability costs below such level may result in administrative expenses greater than the amount of costs incurred.

If the cost threshold is breached by a local exchange carrier, that carrier may choose, but is not obligated, to recover its post-threshold RCF portability costs from other carriers, on a “going forward” basis. Staff anticipates that a carrier’s decision to undertake, or forego, cost assessments may be guided by the anticipated post-threshold costs and the anticipated time remaining in the interim period. If a local exchange carrier decides to impose the cost assessments, it can do so against two categories of carriers. First, it can charge an amount of its on-going costs to the carrier requesting a ported number. That assessment is set at the proportion of the cost (actual or proxy) relative to the requesting carrier’s market share. At the same time, the local exchange carrier may also assess costs against carriers reselling the local exchange carrier’s retail services or purchasing unbundled network elements. The amount to be paid by carriers in this second category is based on one-quarter of the local exchange carrier’s total RCF number portability costs with each such carrier paying a portion relative to its market share. Staff recognizes that resellers and purchasers of network elements do not, or may not, request number portability. However, the rules allow such carriers to be assessed for interim number portability costs in order to make the recovery mechanism ”competitively neutral“ between the requesting carriers, the local exchange carrier, and other carriers. In addition, in an attempt to maintain equity between requesting carriers (who may be assessed costs based upon their market share of the costs for the numbers they request) and the resellers and purchasers of elements (who may be assessed based on total portability costs), the rules provide that the assessment for the latter carriers is based only on one-quarter of the total costs.

Staff acknowledges that the recovery mechanism does not perfectly allocate the costs of RCF interim portability among all telecommunications carriers. Instead, the recovery mechanism is intended to provide a substantially fair, broader-based recovery mechanism which can be implemented without continued Commission oversight. The rules attempt to allow recovery from carriers who deal directly with the local exchange carrier.

4.0 Opportunity for Determination of Actual Costs for Providing Interim Portability

4.1 If at the time a local exchange carrier begins to recover cost assessments under Rules 3.4 through 3.7 the Commission has not determined the actual costs for providing RCF interim number portability, the local exchange carrier or any telecommunications carrier from whom recovery is sought may petition the Commission to conduct a proceeding to determine the actual costs of providing RCF interim number portability.

4.2 Upon such a petition, the Commission shall determine the TELRIC costs of providing RCF interim number portability.

4.3 Until the time the Commission determines the TELRIC costs of providing RCF interim number portability, the local exchange carrier may impose cost assessments using the proxy cost set forth in Rule 3.2. Such assessments may be subject to later reconciliation as set forth in these Rules.

COMMENTS: As noted earlier, the rules premise the threshold and any later assessments for RCF interim number portability on actual cost determinations made in a Commission proceeding or the use of proxies. If at the time the threshold is breached and the local exchange carrier begins to impose cost assessments the commission has not entered any order setting TELRIC RCF number portability costs, this section allows the local exchange carrier or any charged carrier to request that the Commission determine actual costs in a proceeding. Until such TELRIC costs are determined, the assessments may still be based upon the proxies, but subject to the later true-up procedure described in Section 5. Again, if all carriers are satisfied with continued use of the proxies during the remainder of the interim period, the Commission need not undertake a proceeding to determine TELRIC costs.

5.0 True-up Upon Determination of Actual Costs

5.1 After a Commission determination of actual costs for providing RCF interim number portability, the Commission, on its own motion or upon the petition of a telecommunications carrier, may order a reconciliation or true-up of the cost recovery mechanism set forth in these Rules.

5.2 In the reconciliation or true-up process, the determined TELRIC costs shall be used to calculate the costs for purposes of the threshold under Rule 3.3 and to make adjustments to all cost assessments previously recovered by the local exchange carrier under Rules 3.4 through 3.7. The reconciliation shall apply to the entire interim period.

5.3 Payments of adjusted amounts due under the reconciliation shall be recovered through a method agreed upon by the carriers. If no agreement can be reached, any carrier may petition the Commission to determine a reconciliation recovery method.

COMMENTS: This section creates a true-up mechanism to adjust the amounts calculated by use of the proxies with the TELRIC costs, once determined. Under the process, once actual costs have been determined, the threshold can be re-calculated and any costs incurred and assessed thereafter reconciled. When the assessments using TELRIC costs exceed the amounts collected by use of the proxy costs, the additional assessments may be collected from the previously assessed carriers. Conversely, if the TELRIC costs are below the amounts collected using the proxy costs, the assessed carriers may recover the excess payments. The over- and under-recoveries are both net of the threshold amount set forth in Rule 3.3.

6.0 Distribution of Access Charges Paid by Interexchange Carriers

6.1 During the interim period, the local exchange carrier providing RCF interim number portability shall collect the interexchange carrier (“IXC”) access revenue in the process of forwarding an interexchange carrier’s telecommunications call to an end-user of a second telecommunications carrier.

6.2 The local exchange carrier collecting the access revenue under Rule 6.1 shall distribute the collected relevant revenue to compensate the second carrier for revenue lost due to the use of RCF interim number portability. The relevant access revenue shall be distributed as follows:

• the approximation of “terminating IXC minutes of use (‘MOUs’) over ported numbers,” to which the revenue distribution would apply, shall be determined by applying the ratio of terminating IXC access MOUs/ total (local and toll) terminating MOUs to the actual measured total terminating interim number portability MOUs

• the rate adjustment amount, over which the ”terminating IXC minutes of use (‘MOUs’) over ported numbers“ would apply, shall be calculated as follows:

rate adjustment = total IXC exchange access rate charged by the collecting carrier pursuant to its tariffs minus the meet point billing for the collecting carrier (if applicable) minus local reciprocal compensation rate of the second carrier (if applicable)

COMMENTS: This section sets up method for dividing the interexchange access charges when the interexchange carrier’s communication is ported by RCF to another carrier’s network. The provisions of the section set up a formula to approximate the number of terminating access minutes of use that were routed by RCF interim number portability to end-users on the second carrier’s network. The section also defines an adjusted access rate to reflect monies that might be due to the porting carrier from a meet point billing arrangement and reciprocal compensation from local traffic. The first carrier will subtract those per minute arrangements from its tariffed access rate, multiply by the number calculated under the “terminating IXC minutes of use (‘MOU’) over ported numbers” formula, and distribute that amount to the second carrier.

7.0 Miscellaneous

7.1 These rules shall govern during the interim period.

7.2 All telecommunications carriers shall provide all information deemed necessary by the Commission and the Commission Staff to assist in the administration of these rules in any proceeding thereunder.

7.3 The Commission reserves the right to waive the application of these Rules or to make such amendments as may appear necessary or appropriate in accordance with the provisions of the Administrative Procedures Act, 29 Del.C. ch. 101.

1 See 47 C.F.R. ‘’ 52.27, 52.29 (transitional number portability measures)

1 DE Reg. 1418 (03/01/98)

4007 Interim Rules for the Determination of Intrastate Discounts for Services Provided to Elementary and Secondary Schools and Libraries for Purposes of Receipt of Federal Universal Service Support

26 Del. Admin. Code § 4007 Interim Rules for the Determination of Intrastate Discounts for Services Provided to Elementary and Secondary Schools and Libraries for Purposes of Receipt of Federal Universal Service Support

Public Service Commission

4007 Interim Rules for the Determination of Intrastate Discounts for Services Provided to Elementary and Secondary Schools and Libraries for Purposes of Receipt of Federal Universal Service Support

IN THE MATTER OF THE PROMULGATIONOF RULES REGARDING THE DISCOUNTS FOR INTRASTATE TELECOMMUNICATIONS PSC REGULATION AND INFORMATION DOCKET NO. 47 SERVICES PROVIDED TO SCHOOLS AND LIBRARIES

(OPENED JUNE 17, 1997)

ORDER NO. 4555

This 15th day of July, 1997, the Commission finds, determines, and Orders:

In PSC Order No. 4524 (June 17, 1997), the Commission proposed to adopt rules governing the discounts to be available to eligible schools and libraries for the purchase of intrastate telecommunications services. See 47 U.S.C. §254(h)(1)(B). The proposed rules incorporate the discount matrix adopted by the Federal Communications Commission (“FCC”) for interstate telecommunications and other additional services provided to eligible schools and libraries. See Federal-State Board on Universal Service, CC Dckt. No. 96-45, Report and Order, FCC 97-157 (rel. May 8, 1997) (62 Fed. Reg. 32862) (“the Universal Service Order”). The Commission’s proposed rules also set forth implementing procedures similar to those adopted by the FCC. The Commission proposed the new rules, with the discount matrix, because the FCC’s Universal Service Order requires a state to adopt a discount for intrastate services as deep as the federally prescribed one in order for schools and libraries in that state to receive support, for both interstate and intrastate services, from the federal Universal Service fund. 47 C.F.R. § 54.505(e)(1).
Because federal support will be provided to schools and libraries nationwide under a first-come, first-served application process, the Commission sought to adopt the rules promptly to allow Delaware schools and libraries to make timely applications for support. Thus, in compliance with 29 Del.C. §§1133 and 10115, the Commission caused notice of the proposed rules to be published in the Delaware Register of Regulations and caused notice of a public hearing to be published in two newspapers of general circulation. However, due to the time requirements surrounding the promulgation of regulations, it would appear that a final adoption of the proposed rules cannot occur until mid-September, 1997.
On July 9, 1997, the Governor signed House Joint Resolution No. 9. This resolution authorizes the Commission to adopt discounts for telecommunications services provided to eligible schools and libraries for purposes of the receipt of federal universal service support. It also specifically releases the Commission from the procedures set forth in 29 Del.C. §§ 1133 and 10115 in adopting those discounts.
The Commission believes that the intent of House Joint Resolution No. 9 was to allow this Commission to adopt discounts for eligible schools and libraries on an expedited basis so that our State’s schools and libraries would not be delayed in applying for universal service support. In light of such direction, the Commission now decides to adopt the discount matrix set forth in the proposed rules without awaiting the public hearing and the close of the comment period ordered in PSC Order No. 4524. This prompt adoption of the discount matrix will ensure that schools and libraries in this State will have the opportunity to file for universal service support at the time the federal support administrator begins to accept applications. The Commission believes that the adoption of the discount matrix by this Order will satisfy the requirements of 47 C.F.R. § 54.505(e)(1).
At the same time, the Commission will continue the scheduled comment and hearing proceedings and may, after the receipt of such comments and the conclusion of the hearing, alter or amend the proposed rules based on the testimony and materials submitted.

Now, therefore, IT IS ORDERED:

That, pursuant to 47 U.S.C. § 254(h)(1)(B) and House Joint Resolution No. 9 of the 139th General Assembly, the following matrix shall be the discount rate to be applied to eligible intrastate services and facilities purchased by eligible schools, school districts, libraries, or library consortia based on the institution’s level of poverty and location.

SCHOOLS & LIBRARIES DISCOUNT MATRIX

DISCOUNT LEVEL

HOW DISADVANTAGED? % of students eligible for national school lunch program

Urban discount

Rural discount

< 1

1-19

20-34

35-49

50-74

75-100

Schools and libraries located in New Castle County and Kent County are designated as urban. Schools and libraries located in Sussex County are designated as rural. The above discounts shall be applicable only for the receipt of support from a universal service fund.

That the procedures set forth in PSC Order No. 4524 (June 17, 1997) shall continue to be followed and the designated Hearing Examiner shall endeavor to submit his report for Commission review by August, 1997. Interested persons shall still submit comments by July 31, 1997, and may present comments and testimony at the public hearing scheduled for August 1, 1997. The Commission reserves the right to make such modifications, amendments, and revisions to the above matrix and the rules proposed in PSC Order No. 4524 as a result of the comments and public hearing. Pursuant to the authority granted by House Joint Resolution No. 9, the Commission may do so without any further, additional publication of such changes in the Delaware Register of Regulations or in newspapers of general circulation.
That the Secretary shall mail or deliver a copy of this Order to: (1) the Secretary of Education; (2) the State Librarian; (3) the Executive Director of the Office of Information Systems; (4) the Executive Director of the Delaware Center for Educational Technology; (5) the Public Advocate; and (6) all persons who have made a timely request for advance notice of rule-making proceedings.
That the Commission reserves the jurisdiction and authority to enter such further Orders in this matter bs may be deemed necessary or proper.

1 DE Reg. 139 (08/01/97)

1 DE Reg. 462 (11/01/97)

Guidelines Guidelines for Negotiations, Mediations, Arbitration, and Approval of Agreements Between Local Exchange Telecommunications Carriers (Dockets 10 and 45)

26 Del. Admin. Code § Guidelines Guidelines for Negotiations, Mediations, Arbitration, and Approval of Agreements Between Local Exchange Telecommunications Carriers (Dockets 10 and 45)

Public Service Commission

Guidelines for Negotiations, Mediations, Arbitration, and Approval of Agreements Between Local Exchange Telecommunications Carriers (Dockets 10 and 45)

1.0 Purpose of Guidelines

Section 251(c) of the federal Communications Act, as added by the Telecommunications Act of 1996, Pub. L. No. 104-104, requires an incumbent local exchange carrier (such as Bell Atlantic-Delaware, Inc.) and a requesting telecommunications carrier to negotiate about the terms for interconnecting their networks and the prices and conditions governing the purchase and use of the incumbent’s network elements and services. 47 U.S.C. § 251(c)(1). Another new section added by the 1996 Act charges this Commission with the responsibility, upon request, to mediate or arbitrate these negotiations between the potential competitors. 47 U.S.C. § 252(b)-(d). Finally, the Act now also commands the Commission, within abbreviated time periods, to review, approve, or reject any agreement which may emerge from the above negotiations, as well as any “statement of terms and conditions” which Bell Atlantic-Delaware, Inc., as the incumbent carrier, might unilaterally file. 47 U.S.C. § 252(e), (f).

The Commission understands that negotiations, as contemplated by the federal Act, are already underway and that more requests for bargaining may be on the horizon. Because the window for demanding arbitration now moves open,1 the Commission hereby adopts the following guidelines to govern the arbitration and review processes under the federal Act.

Some may say that the 1996 Telecommunications Act directs that the negotiation and arbitration be essentially private bilateral mechanisms between the two carriers, with wider participation by other persons coming, if at all, only during the subsequent review of the delivered agreement. However, the Commission believes that the Act recognizes the public interest should be a factor throughout, considered both during the earlier arbitration endeavors, as well as any final review. See, e.g., 47 U.S.C. §§ 251(d)(3), 252(e)(3), 252(f)(2). Particularly given the short time frames for its review of interconnection agreements, the Commission believes that it should enact guidelines for arbitration, which will not only assist in the resolution of the carriers’ disputes, but allow contemporaneous consideration of the public interest. Thus, while these guidelines do not make the arbitration process a fully-open proceeding, they do allow for consideration of the public interest in several linked ways.

First, the guidelines permit the Public Advocate to be part of the arbitration process. Two reasons support this early participation. Initially, under state law, the Public Advocate has a right to appear in any matter or proceeding over which the Commission has jurisdiction. 29 Del. C. §§ 8828(1), 8829(a)-(c). Moreover, the Advocate, as an active participant during arbitration, may be able to bring to the arbiter’s attention any actual or potential violations of state laws, regulations, or standards. With the two competing carriers eyes most likely focused on each’s business interests, the participation of the Advocate will ensure that, in particular, laws or rules aimed at protecting the end-using consumer will not be overlooked.

Second, although the guidelines envision Commission Staff primarily serving as arbiters and adjuncts, these roles should not be so narrowly viewed as to bar the arbitrator from also acting to protect the public interest and the rights of consumers. Thus, the arbiters remain free to raise, entertain, and resolve questions of the public interest during the arbitration process.

Third, the guidelines allow the Commission Staff, independent of those members appointed as arbiters or adjuncts, to become an active party in any particular arbitration if the Staff, upon review, believes that significant issues concerning the public interest may arise and might not be adequately explored. In particular, the Commission Staff may become an active player in an arbitration if the Public Advocate decides not to participate and Staff believes that, without “third-party” participation, the public interest might be undervalued.

The federal Act requires arbitration by the Commission but gives few clues about what procedures are required. So too, it compels review of agreements by the Commission but, again, sets few direct procedural benchmarks. However, neither the arbitration, nor the review process, dovetails easily with the procedural structure set forth in the Public Utility Act (26 Del.C. ch. I) or the state’s Administrative Procedures Act. 29 Del.C. ch. 101. For example, both the PUA and APA envision Superior Court review of Commission decision-making. In contrast, the federal Act specifically bars such state court review, granting judicial oversight to the federal courts instead. 47 U.S.C. § 252(e)(4), (6). Moreover, the time limitations imposed on the Commission under the federal Act do not, in some instances, provide sufficient leeway to allow for publication of public notice and the convening of formal public evidentiary hearings as envisioned by the APA for price-fixing and rate-making rulings. Consequently, the Commission, in these guidelines, has attempted to craft procedural rules consistent with the spirit of the APA, even though they may be inconsistent with some of the specifics of the PUA and APA. The Commission believes that the General Assembly granted it such authority to depart from the strictures of the APA when it authorized the Commission to undertake “deregulation” of telecommunications services. 26 Del.C. § 703(3).2

These guidelines will apply to negotiations and mediations conducted after the effective date of the guidelines. In addition, these guidelines shall apply to any arbitrations and reviews instituted after the effective date of the guidelines. Finally, these guidelines may be applied, consistent with justice and fairness, to any arbitrations and reviews pending at the time the guidelines become effective. Experience using these guidelines in the near future will assist the Commission in developing final administrative rules.

2.0 Negotiations

2.1 A telecommunications carrier requesting negotiation with an incumbent local exchange carrier concerning any of the obligations imposed under 47 U.S.C. § 251 shall make such a request in writing. A telecommunications carrier requesting negotiation shall, on the same day that such request is delivered to the other carrier, also file a copy of such request with the Commission. Either the requesting telecommunications carrier or the incumbent local exchange carrier may ask the Commission to treat the request filed as confidential and privileged information. If a telecommunications carrier has made a request for negotiation prior to the effective date of these guidelines, the requesting telecommunications carrier shall file a copy of the request with the Commission within fifteen days after the effective date of these guidelines.

2.2 After a request for negotiation has been made, each telecommunications carrier has a duty to negotiate in good faith. The duty to negotiate in good faith includes the obligation to meet and confer at reasonable times and places with minds open to persuasion and an eye towards reaching agreement over any of the terms and conditions set forth in 47 U.S.C. § 251 (b), (c).

2.3 As part of the duty to negotiate in good faith, each telecommunications carrier shall provide to the other telecommunications carrier, upon request, relevant information about its costs or any other pertinent data which the requesting carrier can use to substantiate the claims made by each telecommunications carrier during the negotiations. The producing carrier may require reasonable protections that the information provided will remain confidential.

Interpretation. The guidelines require the requesting carrier to give notice to the Commission when it has made a request for negotiation to an incumbent local exchange provider under 47 U.S.C. § 251(c) and § 252(a). Such forewarning will allow the Commission to plan when it may be called upon to commence arbitration proceedings.

With the exception of the duty to provide documents, the guidelines do not provide a checklist for the “good faith” obligation. However, the Commission anticipates that the duty to negotiate in “good faith” may be given meaning by looking to a similar obligation imposed in the collective bargaining context under federal labor laws. 29 U.S.C. § 158.

The guidelines do specifically allow “discovery” during the negotiation process so that each carrier may verify the other’s claims. Such discovery is generally perceived to be part of the good faith negotiation process. See NLRB v. Truitt Manufacturing Co., 351 U.S. 149 (1956). In this negotiation data exchange, the carrier producing data or other documents can require that the other carrier undertake reasonable protections to ensure that the information, documents, and data produced remain confidential and shall not be used to further the other carrier’s business. The demand for such assurances should not, however, be so stringent or restrictive to become a device to forestall or impede bargaining.

Except in extraordinary circumstances, the Commission will not police the negotiations or entertain complaints of “bad faith,” including the duty to disclose information. Instead the Commission may use remedial measures during the arbitration process to rectify prior breaches or recalcitrance.

3.0 Mediation

3.1 At any point during a negotiation, a telecommunications carrier involved in a negotiation may request the Commission to participate as mediator under 47 U.S.C. § 252(a)(2). To do so, the carrier shall file with the Commission, and serve upon the other telecommunications carrier, a Request for Mediation. Such Request shall include:

3.1.1 the name and address of the requesting carrier;

3.1.2 the name and address of the other carriers in the negotiation;

3.1.3 the name, address, and voice and facsimile telephone numbers for the representatives for each carrier in the negotiations;

3.1.4 a history of the negotiations, including the times and locations of any prior meetings;

3.1.5 a description of those issues which remain in dispute between the carriers; and

3.1.6 a description of any agreements, actual or tentative, already reached on any issue.

3.1.6.1 Such Request for Mediation shall not be deemed a public record.

3.2 Within ten days after the filing of a request for mediation, the Executive Director of the Commission shall appoint one or more persons to act as a mediator for the negotiation. The mediator may be a member of the Commission Staff or any other competent, disinterested person specifically retained for such position. Unless excused by the Commission or Executive Director, the mediator shall participate in the negotiations until such negotiations terminate.

3.3 The mediator shall have discretion to regulate the course of the mediation. In so doing, the mediator may: (1) meet individually with each carrier; (2) require the carriers to exchange and submit statements of position prior to any mediation session; (3) direct the carriers to attend mediation conferences; (4) require the carriers to provide supporting information to each other or the mediator; and (5) assist in the preparation of any written agreement.

3.4 Because mediation is part of the negotiation between the carriers, the mediator shall not disclose information relating to the mediation, except upon the agreement of the participating carriers. The mediator may, however, inform the Commission of the progress of the mediation efforts.

3.5 The Commission shall assess the carriers in the negotiation equally for the costs of mediation.

Interpretation. The federal Act empowers one or both negotiating carriers to invoke mediation by the Commission. The guideline requires a notice of such a request to include a description of the matters which have been resolved and those that remain in dispute between the carriers. This disclosure will help the Executive Director to choose an appropriate mediator - one with some background knowledge into the contentious areas. The Executive Director may also hire outside persons, skilled in either mediation techniques or in a particular area of telecommunications, to act as a mediator. The mediator will determine how mediation should precede and will continue such efforts, unless earlier relieved, until the time an agreement is reached or until the arbitration process is invoked and negotiations end. No representation made by a mediator is binding upon the Commission.

Because the mediation seeks to assist the negotiation process, the mediator may not disclose, except with the consent of the parties, information regarding the status, course, or direction of the negotiations or mediation. However, the mediator may keep the Commission apprised, in general terms, of the progress of the mediation efforts. In a similar vein, the mediator may not disclose, except upon consent, information learned, or documents received, during the mediation process.

4.0 Arbitration

4.1 Trigger

4.1.1 A telecommunications carrier involved in a negotiation may request arbitration under 47 U.S.C. § 252(b)(1) by timely filing with the Commission and serving upon the other telecommunications carrier and the Public Advocate, on the same day, the following documents:

4.1.1.1 a Petition for Arbitration, which shall include:

4.1.1.1.1 the name and address of the petitioning carrier;

4.1.1.1.2 the name and address of the other carriers in the negotiation;

4.1.1.1.3 the name, address, and voice and facsimile telephone numbers for the attorney or other representatives for the petitioning carrier;

4.1.1.1.4 the name, address, and voice and facsimile telephone numbers for the attorney or other representative for the other carrier involved in the negotiations; and

4.1.1.1.5 the date when the request for negotiation was made and the date for completion of the arbitration.

4.1.1.2 a Statement of Unresolved Issues, which shall include:

4.1.1.2.1 a listing of all issues between the carriers which have not been resolved in the negotiations;

4.1.1.2.2 a citation of each state or federal statute, rule, order, or docket which may govern, or be related to, each of the unresolved issues;

4.1.1.2.3 a detailed statement of each carrier’s position with respect to each unresolved issue;

4.1.1.2.4 a statement of the last offer made by each carrier on each of the unresolved issues;

4.1.1.2.5 a statement describing any information which the petitioning carrier believes the arbitrator should request from the other carrier, with reasons why such information would be beneficial;

4.1.1.2.6 a statement of any conditions which the petitioning carrier requests be imposed;

4.1.1.2.7 a proposed schedule for the implementation of the terms and conditions of each arbitrated issue; and

4.1.1.2.8 a statement indicating the petitioning carrier’s position of what type of proceeding is necessary to resolve each of the unresolved issues.

4.1.1.3 All relevant material and documentation, appropriately referenced, which the petitioning carrier wishes the arbitrator to consider in resolving each of the unresolved issues.

4.1.1.4 Material and documentation relevant to any other issue discussed and resolved during the negotiations.

4.1.2 Within twenty-five days after service of the documents set out above, each other carrier to the negotiations may file with the Commission and serve upon the requesting carrier and the Public Advocate the following documents:

4.1.2.1 a Response which shall include a counter-statement of any information set out in the Petition for Arbitration which the carrier believes is incorrect, incomplete, or inadequate;

4.1.2.2 a Counter-Statement of Unresolved Issues which shall include that carrier’s responses to the listings and statements required to be set out in the Statement of Unresolved Issues; and

4.1.2.3 all relevant material and documentation, appropriately referenced, which the non-requesting carrier wishes the arbitrator to consider in resolving each of the unresolved issues.

4.1.3 Within thirty-two days after the filing of the Petition for Arbitration, the Public Advocate may file with the Commission, and serve upon the carriers, a notice indicating whether the Advocate will participate in the arbitration. If the notice indicates an intent to participate, the Public Advocate shall, with such notice, file and serve a document setting forth the Public Advocate’s position on all the unresolved issues and the Public Advocate’s position on the appropriate proceedings necessary to resolve each disputed issue.

4.1.4 Within forty days after the filing of the Petition for Arbitration, the Commission Staff may file with the Commission, and serve upon the carriers and the Office of the Public Advocate, a notice indicating that Staff desires to participate in the arbitration and setting forth the Staff’s position on all the unresolved issues and the Staff’s position on the appropriate proceedings necessary to resolve each disputed issue.

4.1.5 Disputes over whether the request for arbitration was timely or whether any issue is properly subject to arbitration shall be decided by the arbitrator. The arbitrator shall presume that all unresolved issues are subject to arbitration unless a carrier provides notice of such an objection in its Statement or Counter-Statement of Unresolved Issues. If such claim has been made, the objecting carrier shall be required to demonstrate, clearly and convincingly, that the issue is not subject to arbitration.

4.1.6 Trade secrets and commercial or financial information submitted during the arbitration which is of a privileged and confidential nature shall not be considered public records and will be held and treated as confidential by the Commission, the arbitrator and adjuncts, the carriers, the Public Advocate, and the Commission Staff.

Interpretation. These provisions provide a pleading and document submission cycle for the carriers once the negotiation window opens under 47 U.S.C. § 252(b)(1). The Petition and Response provide the Commission with the identify of contact persons and the deadline for completing arbitration. The Statement of Unresolved Issues and the corresponding Counter-Statement seek to narrow the issues and positions and assist the Commission and the arbitrator to determine the nature of the disputes. This will aid in the task of selecting adjuncts (see below) and in determining the type of further proceedings which might be required.

4.1.8 Each carrier’s summary of its position and the accompanying documentation submitted should be sufficiently detailed and comprehensive to allow the arbitrator to resolve the disputed issues. A carrier should assume that it may not be allowed to submit any further argument or documentation and that the unresolved issues will be decided on the materials submitted in this pleading cycle.

4.1.9 As noted before, the guidelines allow the Public Advocate to participate in the arbitration process. To do so, the Public Advocate must file a document revealing whether the office will participate. If participation is indicated, the Advocate must also submit a summary of that office’s position on the disputed issues and the level of process desired for each. This will allow the arbitrator to determine what proceedings to hold. Similarly, the Commission Staff has the power, but not the obligation, to become a participant in the arbitration. To do so, Staff must file a notice of its intent along with a position paper. Because the decision of Staff to participate may, in many instances, depend on the Public Advocate’s participation, the Staff may file its pleading last.

4.1.10 If Staff does elect to participate, the members of Staff assigned to present Staff’s position shall remain separate from those members acting as arbitrators or adjuncts. No other entity or person may participate in the particular arbitration process.

4.1.11 Each carrier, the Public Advocate, and the participating Commission Staff must also indicate the level of process it feels is necessary to resolve adequately and appropriately the disputed issues. Thus, each carrier, the Advocate, and Staff, should indicate whether the issue can be resolved on the written documents or whether it might require a trial-type hearing, involving oral testimony, cross-examination, etc.

4.1.12 Consistent with 47 U.S.C. § 252(b)(2)(A)(iii), the guidelines require the petitioning carrier to also provide documentation pertaining to the issues on which the carriers have already resolved during the negotiations. By having this information about the resolved issues provided early on, the Commission can then begin the review process of the entire agreement.

4.2 Appointment of Arbitrator and Adjuncts

4.2.1 Within ten days after the receipt of a Petition for Arbitration, the Executive Director of the Commission shall appoint a neutral arbitrator to resolve the disputed issues. Generally, the arbitrator shall be a Hearing Examiner employed by the Commission; however, the Executive Director may, in his discretion, appoint another disinterested, qualified person to act as arbitrator. Unless the carriers agree, the Executive Director shall not appoint as arbitrator a person who previously served as mediator in the same negotiation. The Executive Director shall promptly notify the carriers and the Public Advocate of the person appointed as arbitrator.

4.2.2 At any time during the arbitration, the Executive Director of the Commission, at the request of the arbitrator or otherwise, may appoint one or more adjuncts to assist the arbitrator. Such adjuncts may be persons who possess particular or specialized knowledge, skill, or expertise which may be helpful to the arbitrator. Such adjuncts shall act under the direction and supervision of the arbitrator and provide guidance to the arbitrator concerning any relevant issue. With the express approval of the arbitrator, such adjuncts may participate in any hearings conducted and may request the carriers to submit any additional documents, information, or data.

4.2.3 The arbitrator shall fairly and efficiently resolve any unresolved issues in accord with 47 U.S.C. § 252(c). In so doing, the arbitrator shall insure that such resolution is consistent with any governing state law, regulation, and standard.

4.2.4 Neither a carrier involved in arbitration, the Public Advocate, nor any member of the Commission Staff involved as a participant in the arbitration shall have any ex parte contacts with the arbitrator or any appointed adjunct concerning any substantive matter related to the arbitration.

4.2.5 Interpretation. Under these guidelines, the Executive Director is specifically authorized to designate the arbitrator and any adjuncts. In most situations, the arbitrator and adjuncts will come from the pool of members of the Commission Staff, outside rate counsel, and consultants. The function of the adjunct is to assist the arbitrator in understanding complicated technical, financial, or economic issues. The arbitrator remains the ultimate decision-maker. However, the arbitrator may delegate to the adjunct the authority to make inquiries during any hearing and to request further documentation from the carriers. While the adjunct may provide additional insight, the arbitrator’s decision still must be based on materials submitted in accord with these guidelines.

4.2.6 Given the number and nature of unresolved issues in an arbitration, the Executive Director may assign more than one adjunct to any arbitration. As noted in the introduction, the arbitrator has dual responsibilities. The arbitrator must umpire the dispute between the carriers. However, the arbitrator must also insure that any final resolution is compatible with any governing state statutes, rules, orders, and policy.

4.2.7 The arbitrator and the adjuncts should be insulated from contacts with any participant except when all the participants will have the opportunity to be heard. This bar on closed door communications extends to the members of the Commission Staff involved in representing Staff when Staff has given notice that it wishes to participate in the arbitration.

4.3 Paper Resolution or Formal Oral Evidentiary Hearing

4.3.1 At any time after the filing of the Response, the arbitrator, or the adjunct upon direction, may direct the carriers to submit additional information, data, documents, or memoranda to assist in the determination of any unresolved issue.

4.3.2 Within forty-five days after the filing for a Petition for Arbitration, the appointed arbitrator shall notify the carriers, the Public Advocate, and Commission Staff of:

4.3.2.1 the arbitrator’s identification of the unresolved issues which will be subject to arbitration;

4.3.2.2 the opportunity, if any, for the carriers to submit written responses and additional materials in response to the initial pleadings and the date for submission of such responses;

4.3.2.3 the scope of discovery, if any, to be permitted and a schedule for the filing of discovery requests and responses; and

4.3.2.4 the type of resolution process which the arbitrator has tentatively concluded will be used for each of the unresolved issues.

4.3.3 The arbitrator may conduct a preliminary conference in person or by telephone in order to clarify the issues, to obtain evidentiary resolutions, to set scheduling, and to consider any other matter designed to expedite the arbitration.

4.3.4 If the arbitrator shall determine that a formal oral evidentiary hearing is needed to resolve disputed material facts or would be helpful, the arbitrator shall notify the carriers, the Public Advocate, and Commission Staff, in writing of:

4.3.4.1 the date, time, and place for the oral evidentiary hearing;

4.3.4.2 the date for filing and service of any pre-filed direct testimony, if any;

4.3.4.3 the date for each participant to file and serve a list of its proposed witnesses and exhibits;

4.3.4.4 the date for filing and service of any legal memoranda, if any; and

4.3.4.5 the format for the conduct of the oral evidentiary hearing.

4.3.4.5.1 Within five days after the conclusion of an oral evidentiary hearing, each carrier shall submit to the arbitrator and serve upon the other carrier, the Public Advocate, and Commission Staff, a proposed award setting forth a resolution on each unresolved issue. Such proposed award shall set forth the rationale for each resolution.

4.3.5 If the arbitrator determines that a formal evidentiary hearing with oral testimony is not necessary to resolve a disputed issue, the arbitrator shall notify the carriers, the Public Advocate, and Commission Staff, in writing of:

4.3.5.1 the date, time, and place for consideration of the issue;

4.3.5.2 the date, if any, by which participants can file and serve additional material not already included with the Petition and Response, or not previously requested by the arbitrator;

4.3.5.3 the date, if any, for filing and service of any legal memoranda, if any; and

4.3.5.4 the format for the conduct of the consideration.

4.3.5.4.1 Within five days after the conclusion of the consideration, each carrier shall submit to the arbitrator and serve upon the other carrier, the Public Advocate, and Commission Staff, a proposed award setting forth a resolution on each unresolved issue. Such proposed award shall set forth the rationale for each resolution.

4.3.6 The proceedings at any formal oral evidentiary hearing or at an informal consideration shall be recorded, either by audio tape recording or stenography, for use by the Commission. Either carrier may arrange, at its own expense, to have an additional form of recording performed.

4.3.7 The arbitrator may close arbitration proceedings to the public in order to protect against disclosure of trade secrets and commercial or financial information which is of a privileged or confidential nature.

4.3.8 Within nine months after the date on which negotiation was requested, the arbitrator shall file with the Commission and serve on the carriers, the Public Advocate, and Commission Staff, a written award which shall resolve all unresolved issues, set a schedule for implementation, and comply with 47 U.S.C. § 252(c).

4.3.9 If the carriers reach voluntary agreement after the initiation of arbitration, the carriers shall promptly notify the arbitrator and file with the Commission and serve on the Public Advocate a dismissal of the arbitration.

4.3.10 The Commission shall charge each carrier to the arbitration equally for the costs of conducting the arbitration.

Interpretation. These guidelines commit to the arbitrator the decision concerning the type of process which should be undertaken to adequately resolve each of the disputed issues. Soon after the close of the pleading cycle, the arbitrator is given the power to allow the carriers an opportunity to file rebuttal responses and to undertake discovery on a set schedule. Then, or at some later date, the arbitrator will make such a decision on how to hear the issues. Such a decision will be based upon the carriers’ earlier submissions, including their statements about the needed process. For legal questions, the arbitrator may determine to proceed on the “paper record” and only hear legal arguments. For issues which involve disputed factual questions, such as costs, or which may require an appreciation of complex technology, the arbitrator may desire to conduct a full evidentiary hearing to provide clarity on the issue. In either case, the arbitrator must notify the participants of the hearing date, the type of evidence or exhibits which will be permitted, and the procedures to be utilized at the scheduled proceeding. For oral evidentiary hearings, the participants must exchange witness and exhibit lists. The arbitrator can employ both types of hearings concurrently, choosing to resolve several issues via the paper record and make others subject to oral evidentiary hearings.

After either type of proceedings, each carrier must submit to the arbiter a proposed award, which must detail why it should prevail on each issue in the arbitration. Such submissions will serve in the stead of briefing and will assist the arbiter to promptly file his decision. The arbitrator may require the carriers to accompany such written submissions with an electronic word-processing file containing the proposed award.

References in the above guidelines requiring service upon, and action by the Public Advocate and the Commission Staff, are applicable only if the Advocate and Commission Staff have indicated a desire to participate in the arbitration. If the Advocate and Staff have not given the required notification, the references in the above guidelines are not applicable.

As required by the federal Act, the arbitrator must file his award within nine months after the filing of the negotiation request. The Commission will not approve the arbitration award at this juncture. Under 47 U.S.C. § 252(e), the Commission will have before it the arbitrator’s award when it is called upon to review the agreement. At that time, it will determine whether the award complied with prerequisites in the federal Act and is consistent with state law, state regulations, and state standards.

5.0 Review of Agreements and “Statement of Terms and Conditions”

5.1 An agreement (including any attachments and appendices) between carriers concerning the terms and conditions set out in 47 U.S.C. § 251 shall be filed with the Commission for review, within thirty days after the consummation of such agreement in cases of a negotiated agreement under 47 U.S.C. § 252(a), or within thirty days after the filing of an arbitrator’s award in cases of an agreement subject to arbitration under 47 U.S.C. § 252(b). The Commission may extend the time for good cause. On the same day of filing, a copy of the agreement (including any attachments and appendices) shall be served upon the Public Advocate. The filing obligation shall be the requirement of all carriers and parties to the agreement.

5.1.1 Negotiated Agreements under 47 U.S.C. § 252(a)

5.1.1.1 If carriers have adopted an agreement by negotiation under 47 U.S.C. § 251(a), the carriers shall, at the time of filing of the agreement, file and serve on the Public Advocate statements setting forth the reasons why the Commission should not reject the agreement under the standards in 47 U.S.C. § 252(e)(2)(A) and the reasons why the agreement is consistent with applicable state laws and regulations. Such statements shall be accompanied by any relevant supporting documents and materials.

5.1.1.2 Within ten days after the filing of the agreement, the Commission shall provide notice of the filing of the agreement. Such notice shall indicate that any person may file with the Commission and serve upon the submitting carriers by a date certain, twenty days after publication of the notice, comments (with supporting documentation) concerning approval or rejection of the agreement. Such notice shall be posted on the Commission’s Internet website to be accessed through a home page heading entitled “Public Notices of Telecommunications Interconnection Agreements Submitted for Approval.” The notice to the submitted agreement shall be maintained on the Commission’s website for thirty days. The Commission Staff, at its discretion, may direct the submitted carriers to disseminate such notice by other, additional means, such as by newspaper publication or by direct transmission, by facsimile, courier, or mail, to particular entities or persons.

5.1.1.3 During the comment period, any person, the Public Advocate, and the Commission Staff may serve and file written comments, accompanied with supporting documentation. The submitting carriers may file and serve responses to any written comments within seven days after the close of the comment period.

5.1.1.4 After the date for the submission of comments and responses, the Executive Director shall determine whether the review process should be conducted by the Commission directly or after initial proceedings by a designee. The Commission, or its designee, shall, at least fifteen days in advance, notify the submitting carriers, the Public Advocate, and all persons who have submitted written comments of the date, time, and place for a proceeding to consider approval or rejection of the agreement. At such proceeding, the Commission, or its designee, may hear argument from the carriers, the Public Advocate, the Commission Staff, and any person who submitted written comments. The Commission or its designee may, in its discretion, also hear evidence from any of such participants at such proceeding if the Commission, or its designee, has given at least seven days notice of its intent to do so.

5.1.1.5 If the proceeding is initially held by a designee, that designee shall file and serve upon the participants recommended findings and decision. Within seven days after the filing of such recommended findings and decision, any participant at the proceeding may file comments in opposition or in support of the recommendation.

5.1.1.6 Within ninety days after the submission of the agreement, the Commission shall issue an order approving or rejecting the agreement or portions of the agreement. If the order rejects the agreement or portions thereof, the order shall set forth the deficiencies found. The carriers to the agreement may, within thirty days after a rejection of the agreement, submit a revised agreement for approval which purportedly corrects the cited deficiencies. After giving notice and an opportunity to comment to all the prior participants, the Commission may approve or reject the re-submitted agreement.

5.1.1.7 If the Commission approves an agreement, such agreement shall be made available for public inspection and copying ten days after approval.

Interpretation. These guidelines require all agreements to be filed within thirty days after they are finalized, either by execution or by entry of an arbitration order. The carriers who have reached a negotiated agreement must also file a memorandum supporting its approval. The subsequent notice will simply inform the public that such an agreement has been tendered, may be inspected, and may be commented upon. Because an approved agreement is required to be made public under 47 U.S.C. §252(h), the Commission believes that an agreement offered for approval is also available to the public. Interested persons can then file comments with the Commission. Moreover, because under 47 U.S.C. § 252(a), this type of agreement need not meet the particular standards set forth in 47 U.S.C. §251, the comment period is short and there will generally be no need for complex technical hearings. If an evidentiary hearing is needed, the carriers, Commission Staff, the Public Advocate, and other commenting persons must be alerted to that fact and given time to prepare for the hearing. However, the Commission retains the authority to approve or reject the agreement based solely on the paper record which may be established.

The guidelines also recognize that the Commission may wish to have the review process, in some instances, to be initially undertaken by a Hearing Examiner. The determination whether to proceed initially before a Hearing Examiner is delegated to the Executive Director. If that Hearing Examiner procedure is chosen, the guidelines provide for a hearing and exception procedure modeled after present practice, but with shortened time periods.

If the Commission rejects an agreement, the carriers will have thirty days to submit a corrected agreement. In this second round, only those persons who participated in the original proceeding need be notified and given an opportunity to comment. After receiving those comments, the Commission may then act without further protracted proceedings.

In all cases, the participants must be aware that the Commission must enter an order approving or rejecting the agreement within ninety days after its submission. All hearings, whether conducted by a designee or the Commission itself, must be scheduled to accommodate that deadline.

5.1.2 Agreements Arbitrated Under 47 U.S.C. § 252(b)

5.1.2.1 If an agreement has been adopted by arbitration under 47 U.S.C. § 252(b), one, or both, of the carriers shall, at the time of filing of the agreement, file a statement setting forth: (1) the carrier’s position as to whether the agreement should be adopted, rejected, or modified; (2) the reasons why the agreement should not be rejected under the standards in 47 U.S.C. § 252(e)(2); and (3) the reasons why the agreement is consistent with applicable state laws and regulations. Such statements shall be accompanied by any relevant supporting documents and materials.

5.1.2.2 On the same day of the filing of the agreement, the carriers shall give notice of the filing of the agreement. Such notice shall inform interested parties that they may file with the Commission written comments accompanied with supporting documentation concerning the agreement within ten days after the date of the public notice. The notice shall also include the date, time, and place, when the Commission will conduct a public proceeding to approve or reject the tendered agreement. Such notice shall be: (1) published in a newspaper of state-wide circulation; and (2) sent by facsimile and United States mail to each other entity that then holds a Certificate of Public Convenience and Necessity to provide local exchange telecommunications service in Delaware. In addition, on the same date, the Commission shall post the notice on the Commission’s Internet website to be accessed through a heading on the home page entitled “Public Notices of Telecommunications Interconnection Agreements Submitted for Approval.” The notice for the agreement shall be maintained on the Commission’s website for twenty days.

5.1.2.3 During the comment period, any person, the Public Advocate, and the Commission Staff may serve and file written comments, accompanied with supporting documentation. The submitting carriers may file and serve responses to any written comments within five days after the close of the comment period.

5.1.2.4 At any proceeding held to approve or reject the agreement, the Commission may hear argument and, in its discretion, receive evidence concerning approval or rejection of the agreement. The Commission Staff may participate in such proceeding as to all portions of the agreement. The Commission, in making its determination, may also rely upon any information, data, documents, or material submitted during arbitration.

5.1.2.5 Within thirty days after the submission of the agreement, the Commission shall issue an order approving or rejecting the agreement or portions thereof. If the order rejects the agreement or portions thereof, the order shall set forth the deficiencies found. The carriers may, within thirty days after a rejection of the agreement, submit a revised agreement for approval which purportedly corrects the cited deficiencies. After giving notice and an opportunity to comment to all the prior participants, the Commission may approve or reject the re-submitted agreement.

5.1.2.6 If the Commission approves an agreement, such agreement shall be made available for public inspection and copying ten days after the approval.

Interpretation. Again, these guidelines contemplate notice to be given when two carriers submit for approval an agreement which has been subject to arbitration. However, given the short time frame, the notice will also give notice of the date the Commission will consider the matter. Thus, the submitting carrier must, prior to filing the agreement, give notice to the Commission and obtain a date for a scheduled proceeding. This date will then be reflected in the notice. The comment period is also shortened. With the limited time frames and given the history of arbitration by the Commission presumably on the most difficult issues, the Commission will most likely proceed simply on the written record. In this process, the Commission Staff may present its views on any portion of the agreement including the issues which were not arbitrated. In reviewing the arbitrated issues, the Commission may rely upon those materials in reviewing the agreement. Again, if the agreement is rejected, the parties will have thirty days to submit a “corrected” agreement which then may be approved with a round of comments from the prior parties but without further protracted proceedings.

5.1.3 Statement of Terms and Conditions Under 47 U.S.C. § 252(f)

5.1.3.1 If Bell Atlantic-Delaware, Inc. (“BA-Del”), chooses to file with the Commission a statement of the terms and conditions under 47 U.S.C. § 252(f)(1), it shall, on the same day of filing, serve a copy of the statement on the Public Advocate. With the filing, BA-Del shall also file with the Commission and serve on the Public Advocate a memorandum setting forth the reasons why the Commission should approve the statement, why the terms and conditions comply with 47 U.S.C. §§ 251, 252(d), and implementing federal regulations, and why the terms and conditions are consistent with applicable state laws and regulations. BA-Del may also support any relevant supporting documentation.

5.1.3.2 On the date of filing of its statement, BA-Del shall give notice of its filing. Such notice shall indicate that any person may file comments concerning the tendered statement with the Commission no later than twenty days after publication of the notice. Such notice shall be: (1) published in a newspaper of state-wide circulation; (2) sent by facsimile and United States mail to each participant on the service list in Regulation Docket No. 45; and (3) sent by facsimile and United States mail to each other entity that then holds a Certificate of Public Convenience and Necessity to provide local exchange telecommunications service.

5.1.3.3. During the comment period, any person, the Public Advocate, and the Commission Staff may serve and file written comments, accompanied with supporting documentation. BA-Del may file and serve responses to any written comments within seven days after the close of the comment period.

5.1.3.4 After the date for the submission of comments and responses, the Executive Director of the Commission shall determine whether the review process should be conducted by the Commission directly or after initial proceedings by a designee. The Commission, or its designee, shall give notice, at least ten days in advance, to BA-Del, the Public Advocate, and all persons who have submitted written comments of the date, time, and place for a proceeding to consider approval or rejection of such statement. At such proceeding, the Commission, or its designee, may receive argument and may, in its discretion, receive evidence concerning approval or rejection of the statement.

5.1.3.5 If the proceeding is held by a designee, that designee shall file and serve upon the participants recommended findings and decision. Within seven days after the filing of such recommended findings and decision, any participant at the proceeding may file comments in opposition or in support of the recommendation.

5.1.3.6 Within sixty days after the submission of the statement (unless the time is extended by the Commission), the Commission shall issue an order approving or disapproving the statement of terms and conditions, or any portion thereof. If the order disapproves the statement or any portion thereof, the order shall set forth the deficiencies found. Within 30 days after a rejection of the agreement, BA-Del may submit a revised statement for approval which purportedly corrects the cited deficiencies. After giving notice and an opportunity to comment to the prior participants, the Commission may then approve or reject the re-submitted statement.

5.1.3.7 If the Commission approves a statement, such statement shall be made available for public inspection and copying 10 days after the approval.

Interpretation. Under 47 U.S.C. § 252(f), Bell Atlantic-Delaware may submit a statement of generally available terms and conditions to comply with the conditions imposed by section 251. The guidelines require Bell Atlantic-Delaware to give notice of such submission, and allow interested persons to comment. Afterwards, the Executive Director shall determine whether the matter should be heard directly by the Commission or initially by a Hearing Examiner. The Commission, or the Examiner, may then determine what type of proceeding is necessary before acting to approve or disapprove the terms and conditions set forth in the statement. Since the statement has attributes of a tariff, and will be submitted without any prior review by any competing carrier, the Commission, or the examiner, may believe that the filing should be subject to more traditional fact-finding proceedings, including discovery, and cross-examination. However, given the shortened time frames, the Commission will expect expedited participation by any party. In addition, the guideline recognizes that, absent Bell Atlantic-Delaware’s concurrence, the statement will go into effect at the end of sixty days but that the Commission may still reject the agreement afterwards. 47 U.S.C. § 252(f)(3), (4). Thus, the guidelines allow the Commission to extend the time for its decision even if the Commission cannot unilaterally extend its effective date.

The Commission shall assess the carriers to an agreement, equally, for the costs of reviewing such negotiated agreements, whether arbitrated or not. For statements of terms and conditions, the Commission shall assess BA-Del for the costs of the reviewing its statement.

For purposes of these guidelines, notices and documents may be filed and served by facsimile transmission. A certificate reflecting how service was made shall be filed with the Commission within a reasonable time after service.

When documents are required to be filed or submitted during arbitration, five copies shall be filed or submitted and at least one copy served on each participant. For all other materials required to be filed with the Commission, twelve copies shall be filed or submitted, and at least one copy served on each other participant.

The Commission reserves the right to waive or modify, for good cause, the application of any of the above guidelines, including any time deadline not imposed by law.

5000 Cable Television Regulations

5001 Basic Cable Television Rate Regulations

26 Del. Admin. Code § 5001 Basic Cable Television Rate Regulations

Public Service Commission

5001 Basic Cable Television Rate Regulations

August 1993

IN THE MATTER OF THE INVESTIGATION ON MOTION OF THE COMMISSION INTO THE RE-REGULATION OF BASIC SERVICE RATES FOR CABLE TELEVISION SERVICE (DOCKET 31)

1.0 Rule No. 1

In regulating basic cable television service subject to the jurisdiction of the Delaware Public Service Commission, the Commission will follow the Cable Television Rate Regulations promulgated by the Federal Communications Commission.

5002 Basic Cable Television Rate Regulation and Customer Service Standards

26 Del. Admin. Code § 5002 Basic Cable Television Rate Regulation and Customer Service Standards

Public Service Commission

5002 Basic Cable Television Rate Regulation and Customer Service Standards

1.0 Regulation of Basic Cable Television Service

2.0 Office Hours and Telephone Availability

2.1 The cable operator will maintain a local, toll-free or collect call telephone access line which will be available to its subscribers 24 hours a day, seven days a week, and shall maintain a written log of all incoming telephone complaints so received.

2.1.1 Trained company representatives will be available to respond to customer telephone inquiries during normal business hours.

2.1.2 After normal business hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after normal business hours must be responded to by a trained company representative on the next business day.

2.2 Under normal operating conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met no less than ninety (90) percent of the time under normal operating conditions, measured on a quarterly basis.

2.3 The operator will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply.

2.4 Under normal operating conditions, the customer will receive a busy signal less than three (3) percent of the time.

2.5 Customer service center and bill payment locations will be open at least during normal business hours and will be conveniently located.

3.0 Installations, Outages and Service Calls

3.1 Under normal operating conditions, each of the following four standards will be met no less than ninety-five (95) percent of the time measured (and reported to the Commission) on a quarterly basis:

3.1.1 Standard installations will be performed within seven (7) business days after an order has been placed. "Standard" installations are those that are located up to 125 feet from the existing distribution system.

3.1.2 Excluding conditions beyond the control of the operator, the cable operator will begin working on "service interruptions" promptly, and in no event later than 24 hours after the interruption becomes known. The cable operator must begin actions to correct other service problems the next business day after notification of the service problem.

3.1.3 The "appointment window" alternatives for installations, service calls, and other installation activities will be either a specific time or, at maximum, a four-hour time block during normal business hours. (The operator may schedule service calls and other installation activities outside of normal business hours for the express convenience of the customer).

3.1.4 An operator may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment.

3.2 If a cable operator representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer.

4.0 Communications Between Cable Operators and Cable Subscribers

4.1 Notifications to subscribers:

4.1.1 The cable operator shall provide written information on each of the following areas at the time of installation of service, at least annually to all subscribers, and at any time upon request:

4.1.1.1 products and services offered;

4.1.1.2 prices and options for programming services and conditions of subscription to programming and other services;

4.1.1.3 installation and service maintenance policies;

4.1.1.4 instructions on how to use the cable service;

4.1.1.5 channel positions of programming carried on the system; and,

4.1.1.6 billing, complaint, and refund procedures, including the address and telephone number of the local franchising authority (Delaware Public Service Commission).

4.1.2 Customers will be notified of any changes in rates, programming services, or channel positions as soon as possible through announcements on the cable system and in writing. Notice must be given to subscribers a minimum of thirty (30) days in advance of such changes if the change is within the control of the cable operator. In addition, the cable operator shall notify subscribers thirty (30) days in advance of any significant changes in the other information required by the preceding paragraph.

4.2 Billing:

4.2.1 Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates, and credits.

4.2.2 In case of a billing dispute, the cable operator must respond to a written complaint from a subscriber within thirty (30) days.

4.3 Refunds:

4.3.1 Refund checks will be issued promptly, but no later than either:

(a) the customer's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or

(b) within the next billing cycle or thirty (30) days of the return of the equipment supplied by the cable operator if service is terminated.

4.4 Credits:

Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted.

5.0 Definitions

"Normal Business Hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, normal business hours must include some evening hours at least one night per week and/or some weekend hours.

"Normal Operating Conditions" means those service conditions which are within the control of the cable operator. Those conditions which are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of the cable operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the cable system.

"Service Interruption" means the loss of picture or sound on one or more cable channels.

6.0 Application of Rules and Violations And Penalties

6.1 These regulations shall supersede any inconsistent provision in a franchise except where the term or provision of the franchise requires the franchisee to give greater notice, take additional action or otherwise act in a manner more in the interest of the subscribers in which event the franchise term or provision affording greater protection to the subscribers shall control.

6.2 Whenever the Commission shall find, after notice and the opportunity for hearing, that a cable television system franchised by the Commission has violated or is violating any provision of this Regulation, the Commission may enter an order requiring compliance with the Regulation, together with the payment of such fine as the Commission determines to be reasonable and appropriate for such violation. Whenever any person shall fail to comply with the Order of the Commission, entered pursuant to this subsection, the Commission may file a complaint in the appropriate court seeking such relief as is appropriate to compel full compliance.

6000 Wastewater Regulations

6001 Regulations Concerning the Jurisdiction of the Public Service Commission to Grant and Revoke Certificates of Public Convenience and Necessity to Provide Wastewater Services

26 Del. Admin. Code § 6001 Regulations Concerning the Jurisdiction of the Public Service Commission to Grant and Revoke Certificates of Public Convenience and Necessity to Provide Wastewater Services

Public Service Commission

6001 Regulations Concerning the Jurisdiction of the Public Service Commission to Grant and Revoke Certificates of Public Convenience and Necessity to Provide Wastewater Services

1.0 Definitions

The following words and terms, when used in these regulations, should have the following meaning unless the context clearly indicates otherwise:

“Commission” means the Delaware Public Service Commission.

“CPCN” means a Certificate of Public Convenience and Necessity.

“DNREC” means the Delaware Department of Natural Resources and Environmental Control.

“DPA” means the Division of the Public Advocate.

“Staff” means the Staff of the Delaware Public Service Commission.

“Secretary” means the Secretary of the Delaware Public Service Commission.

2.0 Scope and Authority

2.1 These regulations govern the process by which non-governmental wastewater utilities serving, or planning to serve, fifty or more customers (in the aggregate) apply for and are granted a CPCN to provide wastewater services. These regulations also contain procedures for municipalities, governmental agencies, and wastewater authorities and districts, to notify the Commission of their service territory and planned service extensions.

2.2 Authority for these regulations is granted by 26 Del.C. §203D.

2.3 Proceedings before the Commission for wastewater utilities shall be conducted in accordance with the procedures set forth in 29 Del.C. Ch. 101, Subchapter III, including any proceedings where the Commission finds that an applicant is unwilling or unable to provide safe, adequate, and reliable wastewater service to existing customers, or is currently subject to such a Commission finding under 26 Del.C. §203D(e).

3.0 Application for a Certificate of Public Convenience and Necessity

3.1 An application for a CPCN to begin the business of a wastewater utility, or to extend or expand the business or operations of an existing wastewater utility, shall be made in writing and filed with the Commission. The application shall include all information and supporting documentation required by statute, the Rules of Practice and Procedure of the Commission, and these regulations, and shall not be considered complete until all such information and supporting documentation has been filed with the Commission. At the time of filing, the application shall:

3.1.1 Contain a statement explaining the reason(s) why the Commission should grant the CPCN, and include citations to all statutory and regulatory authority upon which the application is based, or upon which the applicant relies to support the application.

3.1.2 A statement identifying any significant element of the application that, to the applicant's knowledge, represents a departure from prior decisions of the Commission.

3.1.3 State the name, address, telephone number, and e-mail address (if any) of the individual to be notified if Staff determines there are deficiencies in the application.

3.1.4 For applications submitted under 26 Del.C. §203D(d)(2), contain the supporting documentation required by 26 Del.C. §203D, that all landowners of the proposed territory have been notified of the application by certified mail.

3.1.5 A complete list of county tax map parcel number(s), and the corresponding names and mailing addresses of the property owners, for the area covered by the application.

3.1.6 Copies of the tax map or maps with the proposed service territory clearly marked.

3.1.7 A check made out to the Delaware Public Service Commission as specified in Title 26.

3.2 If an application for a CPCN involves a wastewater utility project or service that requires the review, approval or authorization of any other state, local or federal regulatory body, including DNREC, the application to the Commission shall so state, and include the following:

3.2.1 A statement of the current status of such application or applications.

3.2.2 If a determination has been made with respect to such application by the other regulatory body or bodies, the applicant shall include a copy of any permit, order, certificate, or other document issued by the regulatory body; and,

3.2.3 If a determination is made by the other regulatory body or bodies with respect to such application after the filing of the CPCN application with the Commission, but prior to its determination, a copy of any permit, order, certificate or other document issued by the regulatory body or bodies shall be filed with the Commission within six business days of receipt by the applicant.

3.3 If not presently on file with the Commission, an applicant for a CPCN shall provide the following with the CPCN application:

3.3.1 A legal history of the applicant including information such as the dates of formation or incorporation, subsequent acquisitions and/or mergers, a copy of the applicant’s certificate of incorporation or other documentation reflecting the applicant’s formation, and business license;

3.3.2 A complete description of all relationships between the applicant and its parent, subsidiaries, and affiliates, and a chart or charts that depict the inter-company relationships;

3.3.3 A map or maps identifying all areas, including towns, cities, counties, or other government subdivisions to which service is currently provided;

3.3.4 Annual reports to stockholders for the applicant, its subsidiaries, and its parent for the last two years;

3.3.5 The applicant's audited financial statements, 10K's, and all proxy material for the last two years;

3.3.6 Any report or document submitted by the applicant within the preceding twelve months to any state or federal authorities in any proceeding where an issue has been raised regarding the applicant's failure to comply with any statute, regulation, rule, or order related to the provision of safe, adequate and reliable wastewater services to its existing customers; and

3.3.7 Evidence of comprehensive general liability insurance.

3.4 An applicant for a CPCN that proposes to extend services into the service territory of a municipality, government agency or wastewater authority or district must submit written documentation that such entity has been informed of and has approved such an expansion by the applicant.

3.5 During the course of the Staff investigation of an application, the Commission may require an applicant to furnish additional information specifically related to the statutory standards for Commission review and consideration including information pertaining to the financial viability of the applicant. Such documentation shall be made available for inspection and copying upon request by the Staff.

3.6 An applicant for a CPCN shall submit one original and 10 copies of the application and shall include three copies of applicable maps.

4.0 Additional Requirements for a CPCN Application Filed by a New Wastewater Utility

4.1 Except for municipalities, governmental agencies and wastewater authorities and districts, and wastewater utilities serving or to serve fewer than 50 customers in the aggregate, any new wastewater utility that has not previously been awarded a CPCN in Delaware and that will begin operations or provide service to its 50th customer after June 7, 2004, must submit the following information with its CPCN application:

4.1.1 Evidence that it possesses the financial, operational, and managerial capacity to comply with all federal, state and local wastewater requirements, by maintaining capacity sufficient to meet existing and reasonably anticipated future peak daily and monthly demands. In this regard, the Staff may request that the applicant provide information, such as projected revenues, expenses, capital costs, number of customers, and funding sources for a five-year period.

4.1.2 A certified copy of the applicant's certificate of incorporation or other documents reflecting the applicant’s formation, and the applicant’s business license if not presently on file with the Commission;

4.1.3 Details of plant as to type, capacity, cost, status of plant construction, construction schedule, and estimated number of customers to be served; and

4.1.4 A map showing the location and size, in acres or square feet, of the proposed territory, and the composition, diameter, length, and location of pipes to be initially installed.

4.2 Any existing wastewater utility that did not obtain a CPCN from the Commission by December 3, 2004 as required by 26 Del.C. §203D(a)(2), must comply with the requirements set forth in Section 4.1 of these rules.

5.0 Review of Application; Deficiencies in the Application

5.1 The Staff shall review all CPCN applications for compliance with applicable statutes and these regulations. The Staff will, within twenty-one days after the date of filing, specifically identify any deficiencies in the application, and promptly notify the applicant of the alleged deficiencies.

5.2 The applicant shall have thirty days from the date of the receipt of the notice of the deficiencies in the application to file a corrected or supplemental application. The Commission may, in its discretion, extend the period to cure deficiencies in the application for an additional thirty days.

5.3 Only upon the applicant's filing of a corrected or supplemental application correcting the deficiencies shall such application be deemed completed and filed with the Commission for purposes of the time limits for action by the Commission under 26 Del.C. §203D(g)(1). In the event the alleged deficiencies are not cured within the time provided hereunder, Staff may move the Commission to reject the utility's application for non-compliance with these regulations.

5.4 Nothing in this regulation shall prevent an applicant from filing an application in draft form for Staff's informal review and comment without prejudice. Such informal review and comment shall not be unreasonably withheld by Staff; nor shall this regulation affect or delay the filing date of applications that comply with applicable statutes and these regulations, or whose non-compliance is deemed minor or immaterial by the Commission or its Staff.

6.0 Filing of Application with DNREC and the Office of State Planning; Coordination and Cooperation; Filing of Application with Counties, Municipalities and Towns

6.1 An applicant for a CPCN shall file a copy of the application with DNREC and the Office of State Planning within three days of filing the same with the Commission. The applicant need not provide DNREC or the Office of State Planning with the supporting documentation for the application unless DNREC or the Office of State Planning request the supporting documentation.

6.2 Staff shall send a written request to DNREC soliciting written comment as to whether it is aware of any matters indicating that the applicant has been unwilling or unable to provide safe, adequate and reliable wastewater services to existing customers.

6.3 Within three days of filing an application with the Commission, an applicant for a CPCN shall also file a copy of the application with a) any county within whose boundaries the proposed service territory would be located, and b) any municipality, town or local authority i) whose boundaries are adjacent to the proposed service territory, or ii) within whose boundaries or existing wastewater service territory the proposed service territory would be located. The applicant need not provide the county, municipality, town or local authority with the supporting documentation for the application unless they request it.

6.4 Staff shall coordinate and cooperate with DNREC during the process of reviewing an application for a CPCN. Staff shall also coordinate and cooperate with the DPA and other interested state, local, and federal authorities.

7.0 Provision of Notice to all Landowners of the Proposed Service Territory

7.1 In proceedings involving an application under 26 Del.C. §203D(d)(2), prior to filing the application with the Commission, the applicant shall provide written notice of the anticipated filing of the application to all landowners of the proposed territory.

7.2 Such written notice shall be sent to all landowners of the proposed territory not more than sixty days and not less than thirty days prior to the filing of the application, and must include, at a minimum, the following statement:

“Pursuant to 26 Delaware Code, Section 203D(d)(2), an application for a Certificate of Public Convenience and Necessity (CPCN) will be submitted to the Delaware Public Service Commission on or about {enter date of intended submission}. Your property has been included within an area {enter name of your organization} intends to serve with public wastewater and we are required to inform you of certain information. The area to be served is {provide a short hand description of the service area}. If you agree to the inclusion of your property in the proposed service area, no action on your part is required. Inclusion of your property in a CPCN area does not obligate you to connect immediately to our system; however, should your existing system fail and public wastewater services are deemed to be legally and publicly available, you may then be required to connect.

Under Delaware law, the Public Service Commission cannot grant a CPCN to {enter name of your organization} if a majority of the landowners in the proposed wastewater service area object to the issuance of the CPCN. If you object to the issuance of a CPCN for the proposed area that includes your property, you must notify the Commission, in writing, within sixty days of your receipt of this notice or within thirty days of the filing of the completed application for a CPCN, whichever is greater.

You may also request a public hearing on this matter. The purpose of the public hearing will be to demonstrate why it would not be in the public interest for the Commission to grant {enter name of your organization} a CPCN to provide wastewater services to the proposed area. A request for a public hearing must be made in writing to the Commission within sixty days of your receipt of this notice or within thirty days of the filing of the completed application for a CPCN, whichever is greater.

Written notice of your decision to object to the issuance of the CPCN or your written request for a public hearing, should be sent to the Secretary of the Delaware Public Service Commission at the address shown below. Any written notice sent to the Commission must include the description of the service area referred to above, your tax parcel identification number, and the name of the applicant for the CPCN so the Commission will be able to identify the CPCN application to which your notice is related.

Secretary

Delaware Public Service Commission

861 Silver Lake Boulevard

Cannon Building

Suite100

Dover, Delaware 19904

Questions regarding objections or public hearings may be directed to: {enter the name or title, and the address and telephone number of the Commission's contact person(s)}.”

8.0 Landowners Who Object or Request a Public Hearing; Time Limits; Extension of Time

8.1 In proceedings involving an application submitted under 26 Del.C. §203D(d)(2), any landowner whose property, or any part thereof, is located within the proposed territory to be served may object to the issuance of the CPCN or request a public hearing. The applicant shall inform the Commission of the name and address of any landowner who notifies the applicant of their objection to the issuance of the CPCN or who requests a public hearing. Any written notice received by the applicant from a landowner shall be filed with the Commission.

8.2 The Commission shall maintain records identifying any landowner who has provided written notice of their objection to the issuance of the CPCN or who has requested a public hearing. Such records shall be made available to the applicant.

8.3 Written notice from a landowner either objecting to the issuance of the CPCN or requesting a public hearing must be filed with the Commission within sixty days from the date of the landowner's receipt of a written notice from the wastewater utility that complies with Section 7.0 of these rules, or within thirty days of the filing of the completed application, whichever period is greater.

8.4 The Commission may, in the exercise of its discretion, extend the time to object or to request a public hearing even though the period in which to do so has expired.

9.0 Suspension or Revocation of CPCN for Good Cause

9.1 Pursuant to the provisions of 26 Del.C. §203D(j), the Commission may suspend or revoke a CPCN, or a portion thereof, for good cause. Good cause shall consist of:

9.1.1 A finding made by the Commission of material noncompliance by the holder of the certificate with any provisions of Titles 7, 16 or 26 dealing with the provision of wastewater services to customers, or any order or rule of the Commission relating to the same; or,

9.1.2 A finding by the Commission that the wastewater utility has failed in a material manner to provide adequate or safe wastewater service to customers as evidenced by inadequate customer service, insufficient investment in, or inadequate operation of, the system or otherwise; and,

9.1.3 A finding by the Commission that, to the extent practicable, service to customers will remain uninterrupted under an alternative wastewater utility or a designated third party capable of providing adequate wastewater service; and,

9.1.4. A finding by the Commission that to the extent practicable, any financial consequences to customers served by the utility subject to a revocation are appropriately mitigated. (74 Del. Laws, Ch. 317, §6.)

9.2 In conjunction with the findings described in Section 9.1 above, the Commission may consider one or more of the following factors in determining whether to suspend or revoke a CPCN:

9.2.1 Fraud, dishonesty, misrepresentation, self-dealing, managerial dereliction, or gross mismanagement on the part of the wastewater utility; or

9.2.2 Criminal conduct on the part of the wastewater utility; or

9.2.3 Actual, threatened or impending insolvency of the wastewater utility; or

9.2.4 Persistent, serious, substantial violations of statutes or regulations governing the wastewater utility in addition to any finding of non-compliance required by Section 9.1.1 above; or

9.2.5 Failure or inability on the part of the wastewater utility to comply with an order of any other federal, state or local regulatory body after the wastewater utility has been notified of its non-compliance and given an opportunity to achieve compliance; or

9.2.6 Such other factors as the Commission deems relevant to the determination to suspend or revoke a CPCN.

9.3 Proceedings before the Commission to suspend or revoke a CPCN for good cause shall be conducted in accordance with the procedures set forth in 29 Del.C. Ch. 101, Subchapter III.

9.4 The Commission will not suspend or revoke a CPCN for good cause without first affording the wastewater utility a reasonable opportunity to correct the conditions that constitute the grounds for the suspension or revocation of the CPCN, unless the Commission finds that the conduct of a wastewater utility poses an imminent threat to the health and safety of its customers, to the general public or to the environment.

10.0 Abandonment, Sale of Utility, and Transfer of CPCN

10.1 A utility seeking to abandon service, sell, or transfer a CPCN shall file an application with the Commission and must receive Commission approval prior to such abandonment, sale, or transfer.

10.2 Any entity acquiring a CPCN from the divesting utility must submit a CPCN application and receive Commission approval as specified in these regulations.

11.0 Municipalities, Governmental Agencies, and Wastewater Authorities and Districts

11.1 As provided for in 26 Del.C. §203D(b), municipalities, governmental agencies, and wastewater authorities and districts engaging in or desiring to engage in the business of a wastewater utility are not required to obtain a CPCN from the Commission for any existing or new service territory, or expansion of an existing territory.

11.2 These entities shall provide to the Commission a description of any existing service territory for wastewater service no later than October 4, 2004, and shall promptly give notice and a description of any extension of wastewater service territory or new wastewater service territory to the Commission.

11.3 A municipality, governmental agency or wastewater authority or district shall not extend service in areas where the Commission has granted a CPCN to another wastewater utility without receiving the approval of the Commission.

8 DE Reg. 1464 (4/1/05)

6002 Regulations Governing the Minimum Standards for Service Provided by Public Wastewater Utilities Subject to the Jurisdiction of the Delaware Public Service Commission

26 Del. Admin. Code § 6002 Regulations Governing the Minimum Standards for Service Provided by Public Wastewater Utilities Subject to the Jurisdiction of the Delaware Public Service Commission

Public Service Commission

6002 Regulations Governing the Minimum Standards for Service Provided by Public Wastewater Utilities Subject to the Jurisdiction of the Delaware Public Service Commission

1.0 General

1.1 Authorization For Regulations. Title 26 of the Delaware Code vests in the Delaware Public Service Commission the authority to formulate standards for such wastewater services and facilities as it deems necessary to carry out the provisions of this law. (26 Del.C. §209)

1.2 Application Of Regulations. These regulations shall apply to any public wastewater utility operating within the State of Delaware, under the jurisdiction of the Delaware Public Service Commission. These regulations shall become effective ninety (90) days after adoption by the Commission.

1.2.1 Purpose. These regulations are intended to insure adequate service to the public, to provide standards for uniform and fair charges and requirements by the utilities and their customers, and to establish the rights and responsibilities of both utilities and customers.

1.2.3 Exemption. If the application of these regulations will cause a utility unreasonable hardship, or if unreasonable difficulty is involved in compliance, the utility may apply to the Commission for a temporary or permanent exemption, provided that the utility shall submit with such application a full and complete statement of the reasons for the application. Applications for exemptions will be determined by the Commission upon due notice to the affected customers and after a hearing.

1.2.4 Modification. The adoption of these regulations shall in no way preclude the Commission, upon complaint, upon its own motion, or upon the application of any utility, from altering or amending them, in whole or in part, or from requiring any other or additional equipment, facility, or standard, or from making such modifications with respect to the utility's application as may be necessary to meet exceptional conditions. Any modification of these regulations shall be subject to the provisions of 29 Del.C. Ch. 64.

1.3 Definitions. The following words or terms, when used in these regulations, shall have the meaning indicated, unless the context otherwise requires:

“Collection System”. Consists of service lines, mains, manholes, customer facilities such as service lines, pump stations, lift stations, and appurtenances, owned and operated by the utility that conveys wastewater from customers to the treatment facilities.

“Commission”. The Public Service Commission of Delaware.

“Customer”. Any person, including any individual, corporation, partnership, firm, association, company, proprietorship, cooperative, joint stock company, or other form of business enterprise or legal entity of any kind, or any government agency or entity served by a wastewater utility.

“Dwelling Unit”. One or more rooms arranged for the use of one or more individuals as a single housekeeping unit, with cooking, living, sanitary, and sleeping facilities.

“Equivalent Dwelling Unit EDU”. Is a measurement of the volume of wastewater for a single dwelling unit and is used as a means to compare wastewater flows from customers for other classes of wastewater service.

“Main”. Any wastewater pipe, owned, operated, or maintained by a wastewater utility, which is used for the collection or conveyance of wastewater, excluding service lines.

“Complaint”. A complaint shall mean any specific objection to charges on the utility billing statement, facilities, practices, or services of a utility.

“Meter”. Without other qualifications, any device or instrument which is used by the utility in measuring the quantity of wastewater discharged from a customer or service area for recording or billing purposes.

“Premises”. A tract of land or real estate, including buildings and other appurtenances thereon.

“Service Line”. The pipe that runs from the main to the customer's premises.

“Utility”. Any person, including any individual, corporation, firm, partnership, association, company, proprietorship, cooperative, joint stock company, or other form of business enterprise or legal entity of any kind, that provides wastewater services, including collection, transport, or treatment of wastewater, and is subject to regulation by the Commission.

“Wastewater Plant”. Equipment, stations, and property owned or operated by a utility, used in its business operations to render wastewater service to its customers.

“Shall”. The use of the word "shall" in these regulations expresses a mandatory requirement.

“Should”. The use of the word "should" in these regulations expresses suggestion or guidance and is not mandatory.

2.0 Records And Reports

2.1 Availability Of Records. All documents, including books, accounts, papers, records, computer files, electronic data, maps of service area indicating location of mains, pumping stations, and treatment facilities, and memoranda required by these regulations or necessary for the administration thereof, shall be open and available for examination by the Commission or its authorized representatives at all times.

2.2 Retention Of Records. All documents, including books, accounts, papers, records, computer files, electronic data, and memoranda required by these regulations shall be preserved for a minimum period of five (5) years.

2.3 Location. All documents, including books, accounts, papers, records, computer files, electronic data, and memoranda required by these regulations shall be kept in an office within this State, and shall not be removed from this State, except upon such terms and conditions as may be prescribed by the Commission. This provision shall not apply if the utility is engaged in interstate commerce, and its accounts are kept at its principal office outside this State. However, such utility, when requested by the Commission, shall furnish to the Commission, certified copies of all documents, including its books, accounts, papers, records, computer files, electronic data, and memoranda relating to the business done by such public utility.

2.3.1 All wastewater utilities shall maintain their accounts and records in compliance with the Uniform System of Accounts as promulgated in 1996 by the National Association of Regulatory Commissions.

2.3.2 Observance of the system of accounts applicable to the utility by appropriate class is obligatory upon all persons having direct charge of the books and accounts of the utility. For the purpose of securing uniformity in the applications of this system, all questions of doubtful interpretation of accounting rules are to be submitted to the Commission for consideration and decision.

2.4 Information To Be Filed With The Commission. Each utility shall file with the Commission, and keep current, a copy of its approved tariff.

2.4.1 Rates. The tariff shall include each schedule of rates for service.

2.4.2 Rules. The tariff shall include the utility's rules and regulations, or terms and conditions describing the utility's policies and practices in rendering service, and in its relations with customers or prospective customers.

2.4.3 Bill Forms. Each utility shall file with the Commission a sample of each type of customer billing statement, which shall include the information normally shown on a customer's bill for service.

2.4.4 Persons to Contact. Each utility shall file with the Commission and shall notify its customers, upon request, of the name, title, business address, and telephone number of the person(s) who should be contacted in connection with the following areas of operation:

2.4.4.1 management;

2.4.4.2 customer relations (complaints and billing inquiries);

2.4.4.3 engineering; and

2.4.4.4 emergencies during non-office hours and regular hours; and shall notify the Commission promptly of any changes.

2.4.5 Accident Notification. In the event of a fatal or serious accident, prompt notice shall be given to the Commission by telephone or such other means of communication designed to assure prompt notice to the Commission, followed by a full written report of such accident. A full written report is also required when the utility suffers any serious property damage. These reports shall be treated confidentially pursuant to 26 Del.C. §213(b).

2.4.6 Reports of Service Interruption. Each utility shall file with the Commission a report of any system failures or service interruption within ten (10) days after such an event has occurred. Reports shall include:

2.4.6.1 location and time of failure or interruption;

2.4.6.2 time that failure or interruption was remedied;

2.4.6.3 estimated number of customers affected; and

2.4.6.4 cause of the failure or interruption.

Utilities shall make all possible efforts to re-establish service in the shortest time practicable with due regard to safety.

When service is interrupted for scheduled repairs or maintenance, such work should be done at a time that will cause the least inconvenience to customers. The customers who would be affected shall be notified prior to the scheduled interruption.

2.4.7 Annual Reports. Each utility shall file an annual financial statement based upon the accounts set out in the Uniform System of Accounts, or such other requirement as prescribed by the Commission. This annual report shall be filed with the Commission on or before April 30th of the following year.

2.5 Complaints.

2.5.1 Each utility shall keep a record of each complaint received. The complaint record shall contain:

2.5.1.1 complainant's name, address, and telephone number;

2.5.1.2 nature of the complaint;

2.5.1.3 date complaint was received;

2.5.1.4 when, how, and by whom the complaint was handled; and

2.5.1.5 disposition and findings of the complaint.

2.5.2 Resolution. All complaints should be handled promptly, courteously, and include a full investigation prior to any conclusion.

2.5.3 Disputes. After the Commission or the Company have completed an investigation of a customer's complaint concerning a bill, and when the issue is resolved in favor of the utility, the customer shall be afforded a reasonable time, not less than twenty (20) days, to pay the bill as finally determined.

2.6 Customer Billing. Billing for wastewater service may be based on the following:

2.6.1 Flat rate per EDU; and

2.6.2 Volume measured by water meters serving customer premises. In cases where a significant volume of water does not enter the sanitary sewer, or where water from another source enters the sanitary sewer, the measured water meter volume may be adjusted to more accurately reflect the volume of wastewater discharged. Any such adjustment is to be based on meter readings associated with increased or decreased billable volume. Any supplemental meters are to be provided at the expense of the customers and to be maintained in good operating condition subject to testing by the utility.

Wastewater flow measuring devices shall be maintained in good working order.

In cases where water meters are used as a basis for billing wastewater service, the terms and conditions for testing meters and billing adjustments shall be as provided in PSC Order No. 2076, relating to service governing water utilities.

3.0 Engineering

3.1 Authorization For Operation Or Construction. No person, including any individual, corporation, firm, partnership, association, company, proprietorship, cooperative, joint stock company or association, or other form of business enterprise or legal entity of any kind shall commence any construction of a wastewater system for public use without having been granted a Certificate of Public Convenience and Necessity, and such other permits as may be required by law. System expansion, even within the certificated area, shall not commence without approval of the plans by the Department of Natural Resources and Environmental Control (DNREC Reg. 4.06).

3.1.1 If the construction of an extension involves the acquisition of a private right-of-way, then the prospective customer or developer shall attempt to secure the right-of-way and deliver it to the utility free of cost before construction of the extension is started. If, however, it is not reasonably possible for the prospective customer or developer to secure the right-of-way, and the construction of the extension involves the utility’s incurring expenses for right-of-way easements, such costs shall be added to the total cost of the extension.

3.1.2 Utilities are required to incorporate the terms and conditions applicable to contributions in-aid-of construction and refundable advances in their tariff rules and regulations.

3.2 Wastewater Plant Operation. The utility's wastewater plant shall be constructed, installed, maintained, and operated in accordance with current engineering practices in the wastewater industry, to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property, in compliance with relevant DNREC and Health Department regulations and policies.

3.3 Wastewater Plant Inspection. Each utility must adopt and file with the Commission a program of inspection of its wastewater plant in order to develop a capital improvement plan. The frequency of the various inspections shall be based on the utility's experience and accepted good practice. Each utility shall keep sufficient records to give evidence of compliance with its inspection program.

4.0 Operation

4.1 System Safety Program. Each utility shall exercise reasonable care to reduce the hazards to which its employees, customers, and the general public may be subjected. A safety program should be adopted by each utility, fitted to the size and type of its operations.

4.1.1 "Miss Utility". All wastewater utilities are required to belong to and participate in the "Miss Utility" program to minimize third-party damage to other utilities as well as their own.

4.1.2 Promote Safe Work Methods. Each utility shall require its employees to use suitable tools and equipment in order that they may perform their work in a safe manner. The utility's employees who are subject to the hazards of asphyxiation, chemical handling, electrical shock, or drowning in the course of performing their work shall be properly instructed in the accepted methods of artificial respiration, including CPR (cardio-pulmonary resuscitation).

5.0 Customer Relations

5.1 Application For Service.

5.1.1 Rate Schedules. If applicable, each utility shall assist the customer or applicant in selecting the most economical rate schedule. If, after the selection of a service line diameter, the customer determines that a different size service is needed, the full cost of the new service or other facilities requested by the customer will be the responsibility of the customer.

5.1.2 Customer Notification. Customers affected by a change in rates or service schedule classification shall be notified by the utility.

5.1.3 Tariff Notice. Each utility shall keep in each office of the utility where applications are received, a copy of its currently approved tariff available for public inspection at any reasonable time.

5.1.4 Meter Reading. Every customer served by a wastewater utility shall be informed of the method of meter reading if meters are in place for billing purposes.

5.1.5 Interest on Deposits. When a utility's tariff requires or permits the collection of a deposit from customers, the utility shall pay interest on all such deposits at the rate of six percent (6%) annual simple interest. Interest shall be computed from the date of receipt of the deposit by the utility.

5.1.5.1 Interest on deposits shall be credited to the account of the depositor annually, at the time the deposit is returned, or when service is terminated, whichever is sooner; and

5.1.5.2 Deposits shall cease to draw interest on the date service is terminated, on the date the deposit is returned, or on the date that notice is sent to the depositor's last known address that the deposit is no longer required.

5.2 Billing Statement Adjustment. If wastewater service is billed on the basis of metered water usage, billing adjustments shall be calculated on the premise that the meter should be 100% accurate. For the purpose of a billing adjustment, the error in registration of the meter shall be calculated and applied as specified in the meter test rules of the wastewater utility tariff or PSC Order No. 2076 governing minimum service standards provided by public water companies.

6.0 Front-end Capital Contributions

Front-end capital contributions shall be required from all new connections to recover, at least in part, the cost of constructing conveyance, treatment, and disposal facilities incurred by the utility where applicable.

9 DE Reg. 105 (7/1/05)

7000 Motor Vehicle Franchise

7001 Rules Governing Notice Provided by Motor Vehicle Manufacturers Pursuant to §4915 (a) of the Motor Vehicle Franchising Practices Act

26 Del. Admin. Code § 7001 Rules Governing Notice Provided by Motor Vehicle Manufacturers Pursuant to §4915 (a) of the Motor Vehicle Franchising Practices Act

Public Service Commission

7001 Rules Governing Notice Provided by Motor Vehicle Manufacturers Pursuant to §4915(a) of the Motor Vehicle Franchising Practices Act

(Docket 44, Final 2 DE Reg. 1009 12/1/98)

PUBLIC SERVICE COMMISSION RULES REGARDING THE INFORMATION WHICH MUST BE FILED WITH THE COMMISSION BY THE MANUFACTURER AS PART OF ITS NOTICE OF INTENT TO RELOCATE OR ADD A MOTOR VEHICLE DEALERSHIP

1.0 Information Required

1.1 The following information must be supplied to the Public Service Commission of Delaware (the “Commission”) with the manufacturer’s notice of intention to establish an additional new motor vehicle dealer or to relocate an existing new motor vehicle dealer within or into a relevant market area where the same line-make is then represented.

1.1.1 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding the “permanency of investment” including but not limited to:

1.1.1.1 The exact location of the proposed dealership.

1.1.1.2 The proposed land area requirements for all and for each usage need(s) of the proposed dealership.

1.1.1.3 Information on exclusivity or nonexclusivity of line-make at the proposed dealership.

1.1.1.4 A certification that the information required in 1.1.1.1 through 1.1.1.3 above meets the manufacturer’s standard minimim requirements for new dealerships.

1.1.2 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding the growth or decline in population and new car registrations in the relevant market area.

1.1.3 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding the effect on the consuming public in the relevant market area.

1.1.4 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding whether it will be injurious or beneficial to the public welfare for the proposed dealership to be established.

1.1.5 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding competition and convenient customer care, including but not limited to:

1.1.5.1 The demographics of the relevant marketing area or a reference to a published source that may be consulted to obtain such data.

1.1.5.2 The total distance, by a generally accepted measurement technique, between the proposed dealer and existing dealers.

1.1.6 All information and documentation on which the manufacturer intends to rely in the event of a hearing regarding the increase in actual competition that will be in the “public interest.”

1.1.7 All information on which the manufacturer intends to rely in the event of a hearing concerning the effect on the relocating dealer of denial of its relocation.

1.2 Within ten (10) days following the filing of a protest pursuant to 6 Del.C. §4915(a), the manufacturer must submit a letter of intent signed by the manufacturer and proposed dealer.

2.0 Procedures

2.1 The Commission Staff shall review all filings to insure compliance with the minimum filing requirements and shall notify the manufacturer within ten (10) days after the date of filing of any defects in compliance. After notification of non-compliance, the manufacturer shall have twenty (20) days to correct the defects. The time period for filing the protest under 29 Del.C. §4915(a) shall begin to run from the date of the filing of the notice of intent in full compliance with the filing requirements.

2.2 An existing dealer or party with an interest in the siting of the proposed dealership in the relevant market area may request additional information and documentation directly from the manufacturer and the parties may communicate and negotiate directly without Commission intervention. If the existing dealer or party with an interest in the relevant market area of a proposed dealership is still not satisfied with the response to its request, it may request that the Commission, pursuant to its authority in the docket for siting the proposed dealership, require the submission of the data and/or information, if the Commission concludes it is appropriate and relevant to the ripeness of the manufacturer’s intent.

2.3 The Commission or Hearing Examiner may, in its discretion, permit the manufacturer to submit evidence at the hearing that was not submitted with the notice of intent:

2.3.1 if submission of the information and/or documentation is not required by this rule;

2.3.2 if there is good cause shown;

2.3.3 if the submission of the information will not cause unfair prejudice; or

2.3.4 if the consideration of the information is in the interest of justice and the efficient administration of the hearing.

Attachment B - Hearing Examiner’s recommended rule.

RULE GOVERNING NOTICE PROVIDED BY MOTOR VEHICLE MANUFACTURERS PURSUANT TO SECTION 4915(a) OF THE MOTOR VEHICLE FRANCHISING PRACTICES ACT

Motor vehicle manufacturers notifying the Public Service Commission and affected new motor vehicle dealers of their intent to establish an additional new motor vehicle dealership or to relocate an existing new motor vehicle dealership pursuant to 6 Del.C. § 4915(a) shall use the following form of notice:

NOTICE OF THE ESTABLISHMENT OF AN ADDITIONAL NEW MOTOR VEHICLE DEALERSHIP OR THE RELOCATION OF AN EXISTING NEW MOTOR VEHICLE DEALERSHIP

TO: [Insert name and address of new motor vehicle dealer selling new motor vehicles in the same line-make in the “relevant market area” as defined by 6 Del.C. § 4902(10).]

You are hereby notified that [insert name of manufacturer] intends to establish a [insert line-make of vehicle] dealership at [specify the street address, or if none exists, the geographic boundaries of the proposed new dealership] on or after [insert earliest date on which manufacturer intends to establish the additional or relocated dealership].

The manufacturer is required to provide this notice to you and to the Public Service Commission pursuant to 6 Del.C. § 4915.

[signature] [signature]

On behalf of [insert name On behalf of [insert name

of manufacturer] of proposed dealership]

2 DE Reg. 1009 (12/01/98)

8000 Gas Regulations

8001 Rules to Establish an Intrastate Gas Pipeline Safety Compliance Program

26 Del. Admin. Code § 8001 Rules to Establish an Intrastate Gas Pipeline Safety Compliance Program

Public Service Commission

8001 Rules to Establish an Intrastate Gas Pipeline Safety Compliance Program

(Opened October 7, 2008)

1.0 Definitions

Unless otherwise defined herein, all capitalized terms and phrases shall have the meanings given those terms and phrases in applicable sections of Chapter 601 of Title 49 of the United States Code and the Code of Federal Regulations, Title 49, Parts 190, 191, 192, 193, 198 and 199, as may be amended and revised (collectively the “Federal Regulations”).

“Commission” means the Delaware Public Service Commission.

“Corrective Action Orders” refers to those orders referenced in 49 U.S.C. § 60112(d).

“Federal Regulations” shall have the meaning ascribed above.

"Gas Leakage Survey" means a survey of gas facilities as defined in Sections 192.706 and 192.723 of the Federal Regulations.

“Leak Classification and Action Criteria” means a procedure by which leakage indication of gas can be graded and controlled.

“Operator” means an “underground pipeline facility operator”, as defined in 26 Del.C. §802(11). Notwithstanding the foregoing, “Operator” shall not include any operator of a Pipeline facility that transports hazardous liquid or only petroleum gas or petroleum gas/air mixtures to – (i) fewer than ten (10) customers, if no portion of the facility is located in a public place, or (ii) a single customer, if the facility is located entirely on the customer’s premises (no matter if a portion of the facility is located in a public place).

“Regulated Facilities” shall include both Pipeline facilities and any LNG facility.

“Regulations” shall refer to the regulations set forth herein.

“Staff” shall mean the staff of the Commission.

2.0 Regulations

2.1 The minimum standards governing the design, construction, fabrication, installation, inspection, reporting, testing, operation, maintenance, protection, and the safety aspects of operation and maintenance of Regulated Facilities shall be those standards set forth in Parts 191, 192 and 193 of the Federal Regulations, as applicable.

2.2 The minimum standards governing the drug and alcohol testing required of operators of Regulated Facilities shall be those standards set forth in Part 199 of the Federal Regulations.

2.3 The conversion of Liquefied Natural Gas to a gaseous state and subsequent injection into a Pipeline facility shall be done in a manner which does not reduce the level of odorization within the system to below that required by Part 192 of the Federal Regulations.

2.4 All Operators shall conduct Gas Leak Surveys in accordance with and at such intervals as are provided under the Federal Regulations.

2.5 Each Operator conducting Gas Leak Surveys shall, for a minimum of seven (7) years, maintain records of leaks detected during the Surveys. Such records shall be available for inspection by the Staff, subject to the provisions of 26 Del.C. §213, to the extent applicable

2.6 Each Operator shall identify a Leak Classification and Action Criteria applicable to the Pipeline facilities it operates in Delaware, which classification and criteria shall be consistent with the Federal Regulations. Each Operator shall institute and maintain on a continuing basis, records that identify any leaks discovered on the Pipeline facilities it operates, which records shall include, at a minimum, the location, date of discovery, classification under the Operator’s Leak Classification and Action Criteria, and the steps taken in response to such leaks.

2.7 Cast-iron pipe in sizes 4-inch and smaller shall not be installed in Pipeline facilities beginning thirty (30) days after approval of these Regulations.This requirement shall not be construed to require replacement of any such pipe installed prior to such time.

2.8 Notwithstanding anything contained in these Regulations to the contrary, the Commission shall have no authority to enforce any of these Regulations as they pertain to interstate Pipeline facilities.

3.0 Delegation of Authority

With respect to the enforcement of these Regulations, the Commission and Staff shall have the authority to investigate the methods and practices of Operators; to require that Operators maintain and file reports, records and other information; to enter upon and to inspect the property, buildings, plants and offices of Operators; to inspect books, records, papers and documents of Operators; and to enforce these Regulations as provided herein.

4.0 Informal Disposition of Actual or Potential Violation

When an evaluation of an Operator's records or Regulated Facilities indicate that the Operator is or may be violating these Regulations, Staff shall provide the Operator with prompt notice of the potential violation, at which point Staff may informally discuss the potential violation with the Operator. Any documentation or physical evidence necessary to support an allegation of non-compliance may be obtained during the inspection. Timely corrective action may be taken by the Operator of the facilities where a potential violation exists, thus correcting the potential violation without further action.

5.0 Written Formal Notice of Potential Violation

After evidence of a potential violation is collected and a violation report written, notice and opportunity to respond will be afforded the Operator by a letter from Staff providing the Operator with copies of all relevant documentation, including the written violation reports, notifying the Operator of the results of the on-site evaluation and specifically citing the provision of the applicable Regulation(s) the Operator is alleged to be violating. The operator must respond in writing within thirty (30) days from receipt of such violation notice, unless the Operator and Staff otherwise agree.

6.0 Response Options Open to Operators

6.1 The Operator, in responding to the violation notice, may:

6.1.1 Submit a written plan to Staff specifying actions that the Operator will take to correct the violation, a schedule for completion of each action step, and a final date of completion. If Staff accepts the corrective plan submitted by the Operator, the violation shall be deemed resolved.

6.1.2 Request an informal conference with Staff. Upon request for an informal conference, Staff will establish a date, time, and location for the conference. During the conference, Staff will review the violation report with the Operator to identify corrective actions in an effort to reach a mutually acceptable resolution of the alleged violation. If this effort fails, Staff may refer the alleged violation to the Commission for formal action.

7.0 Commission Action

7.1 If the violation is referred to the Commission for formal resolution, the Commission may, pursuant to procedures established under rules and regulations, take action available under applicable law, including, but not limited to, the following:

7.1.1 The Commission may seek injunctive relief in a court of competent jurisdiction;

7.1.2 The Commission, as the agent of the Administrator as set forth in the Federal Regulations, may issue the civil penalties set forth in 49 U.S.C. § 60122(a) and subpart B of Part 190 of the Federal Regulations; and

7.1.3 The Commission may order an Operator to take corrective action.

8.0 Corrective Action Orders

8.1 If the Commission finds that a Regulated Facility is hazardous (a “Hazardous Facility”) to life or property, the Commission may issue a Corrective Action Order requiring the Operator to take immediate corrective action, which may include:

8.1.1 Suspended or restricted use of the Hazardous Facility;

8.1.2 Physical inspection;

8.1.3 Testing;

8.1.4 Repair;

8.1.5 Replacement; or

8.1.6 Other appropriate action.

8.2 The Commission shall give the Operator written notice and an opportunity for a hearing before issuance of a Corrective Action Order unless the Commission or its Staff determines there is a serious and imminent threat to life, property, or the environment, in which case, the Commission or its designated hearing examiner may issue an emergency Corrective Action Order. If the Corrective Action Order is issued without a prior hearing, the Commission shall give the Operator written notice and an opportunity for a hearing before the Commission or its designated hearing examiner as soon as possible after the issuance of the Corrective Action Order.

9.0 Exceptions

The Operator may take exceptions from the decision of the hearing examiner as provided by Delaware law or the Rules of Practice of the Commission. After receipt of the exceptions, the Commission or Staff may investigate further and hold a public hearing on the matter within a reasonable time.

10.0 Granting of Federal Regulation Waivers

10.1 Upon application by an Operator, the Commission may grant a waiver from compliance with the Federal Regulations, subject to review by the Office of Pipeline Safety Regulation of the United States Department of Transportation.

10.2 Waivers may be granted for particular circumstances where it is inappropriate for an Operator to follow a regulation of general applicability.

10.3 Before granting a waiver, the Commission must give notice and opportunity for written comments and a public hearing, unless the Commission finds that notice is impracticable, unnecessary, not in the public interest, or that an emergency exists.

10.4 If the Commission finds a requested waiver is consistent with gas pipeline safety and is otherwise justified, the waiver may be issued under appropriate terms and conditions with a statement of the reasons for granting the waiver.

10.5 If the Commission finds a requested waiver is inconsistent with gas pipeline safety or is otherwise unjustified, the request must be denied, and the applicant notified of the reasons for denial.

10.6 The Commission must give the Office of Pipeline Safety Regulation of the United States Department of Transportation written notice of each waiver at least sixty (60) days before it becomes effective. Each notice of waiver must provide the following information:

10.6.1 The name, address, and telephone number of the applicant;

10.6.2 The safety standards involved;

10.6.3 A description of the Regulated Facilities involved; and

10.6.4 The justification for the waiver, including the reasons why the standards are not appropriate and why the waiver is consistent with gas pipeline safety.

13 DE Reg. 416 (09/01/09)

8003 Natural Gas Service Reliability and System Planning Standards

26 Del. Admin. Code § 8003 Natural Gas Service Reliability and System Planning Standards

EFFECTIVE DATE: October 11, 2020

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-1.0 Purpose and Scope

1.1 Natural gas system safety is the overriding goal for Delaware’s natural gas system operators. Reliable natural gas service is an essential service to Delaware citizens and is of great importance to the Delaware Public Service Commission ("Commission"). This regulation sets forth distribution planning requirements, reliability standards, and reporting requirements to assure the continued Reliability and Natural Gas quality of service being delivered to Delaware regulated public utility customers and applies to all Delaware Gas Distribution Companies ("GDCs").

1.2 Nothing in this regulation relieves a GDC from compliance with any requirement set forth under any other regulation, statute or order, such as the GDC's operations, maintenance and emergency manuals, federal pipeline safety regulations contained in 49 CFR Part 192 and Delaware Pipeline Safety Compliance Programs.

1.3 Compliance with this regulation is a minimum standard. Compliance does not create a presumption of safe, adequate and proper service. Each GDC must exercise its professional judgment based on its systems and service territories. Nothing in this regulation relieves any GDC from the requirement to furnish safe, adequate and proper service and to keep and maintain its property and equipment in such condition as to enable it to do so. (26 Del.C. §209)

1.4 Each GDC is responsible for maintaining the Reliability of natural gas service to all its customers in the state of Delaware. Pursuant to this requirement, GDCs may be subject to penalties as provided for in Section 10.0 or allowed under other applicable Delaware law.

1.5 GDCs are encouraged to explore the use of proven state of the art technology, to provide cost effective natural gas service Reliability improvements.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-2.0 Definitions

The following words and terms, as used in these Regulations, shall have the following meanings, unless the context clearly indicates otherwise:

"Acceptable reliability level" means the minimum acceptable level of natural gas service based on the targets set for Annual Outage Rate (AOR) and Average Outage Duration (AOD), as set forth in these regulations.

"Annual outage rate” or “AOR" means the frequency of sustained customer outages during the reporting year. AOR can be expressed as "events per customer per year" and defined as:

AOR = Total Number of Sustained Customer Outages per Reporting Period

Total Number of Customers

"Average outage duration” or “AOD" means the average time in minutes required to restore service to those customers that experienced sustained outages during the reporting period. AOD is defined as follows:

AOD = Sum of all Sustained Customer Outage Durations per Reporting Period

Total Number of Sustained Customer Outages per Reporting Period

"Benchmark" means the standard service measure of AOR and AOD as set forth in these regulations.

"Capacity" means the rated continuous load-carrying ability, expressed in Volume ("V"), of pipelines, regulators, or other gas equipment.

"Commission" or "PSC" means the Delaware Public Service Commission.

"Corrective actions" means the maintenance, repair, or replacement of a GDC's utility system components and structures to allow them to function at an acceptable level of reliability.

"Delivery Facilities" means the GDC's physical natural gas distribution system used to provide gas service to Delaware retail customers, normally inclusive of Distribution and Transmission Facilities. A GDC that typically operates at pressures of 200 psi or below and that are used to deliver natural gas to customers, up through and including the point of physical connection with natural gas facilities owned by the customer.

"DPA" means the Delaware Division of the Public Advocate.

"Gas distribution company" or "GDC" means a public utility owning or operating natural gas transmission and/or Distribution Facilities in Delaware.

"Major reliability event" means an outage of 1000 customers or more that is caused by a loss of natural gas pipeline supply or a weather event. Major reliability event outages shall be excluded from the GDC's AOR, and AOD calculations for comparison to reliability benchmarks. Outage data for major reliability events shall be collected and reported according to the reporting requirements set forth in this regulation.

"Natural gas distribution system" means that portion of a natural gas system that delivers gas energy from tap stations on the transmission system to points of connection at the customers' premises.

"Natural gas quality" means the characteristics of natural gas received by the customer. Characteristics of gas service that detract from its quality include liquids and particulates from the processing of natural gas upstream and compression of gas in transmission systems supplying gas to the GDC, either prolonged or transient. Natural gas quality problems shall include, but are not limited to, disturbances such as high or low pressure, moisture control, compressor oil carryover, and sulfur.

"Natural gas service" means the supply, transmission, and distribution of natural gas energy as provided by a GDC.

"Outage" means the loss of natural gas service to one or more customers. It is the result of a planned maintenance activity or one or more unplanned component failures, depending on system configuration or other events. Types of outages include planned and unplanned.

"Outage, duration" means the period (measured in minutes) from the initiation or report of a loss of natural gas service to a customer until such service has been restored to that customer.

"Outage management system” or “OMS" means a software system that provides database information to effectively manage service interruptions and minimize customer outage times.

"Outage, planned" means a loss of natural gas service that results when one or more components are deliberately taken out of service at a selected time, usually for the purposes of preventive maintenance, repair or construction. Where attempts have been made to notify customers in advance, planned outages shall not be included in reliability calculations.

"Outage, sustained" means a loss of natural gas service to one or more customers that is longer than 30 minutes in duration.

"Outage, unplanned" means a loss of natural gas service that results when one or more components are out of service at a selected time, usually as a result of a weather event, low pressure condition, water infiltration or some other unexpected operational event or outside force.

"Pipeline" means all parts of those physical facilities through which gas moves in transportation, including pipe, valves, and other appurtenance attached to pipe, compressor units, metering stations, regulator stations, delivery stations, holders, and fabricated assemblies.

"Related projects" means individual projects whose completion is required, contingent, or dependent on each other for overall completion of the specified scope of work.

"Reliability" means the degree of performance of the elements of the natural gas system that results in gas being delivered to customers within accepted standards. Reliability may be measured by the frequency and duration of adverse effects on natural gas distribution service.

"Restored" means that gas service is available at the customer's premise and all GDC equipment, up to and including the meter, is gassed up. For inaccessible meters and customers that are not ready for service, the outage will be considered corrected when the GDC has attempted to restore gas to the customer.

"Staff" means the Staff of the Delaware Public Service Commission.

"Sum of all sustained customer outage durations" means the summation of the restoration time (in minutes) for each customer outage during the reporting period.

"Total number of customers served" means the number of customers provided with gas service by the distribution facility for which a reliability measure is being calculated on the last day of the time period for which the reliability measure is being calculated.

"Total number of sustained customer outages" means the sum of the number of customer outages for each outage event during the reporting period. Customers who experienced multiple outages during the reporting period are counted for each outage event the customer experienced during the reporting period.

"Transmission facilities" means natural gas facilities located in Delaware and owned by a GDC that operate at pressures above 200psi and that are used to transmit and deliver natural gas to customers up through and including the point of physical connection with gas facilities owned by the customer.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-3.0 Gas Service Reliability and System Planning

3.1 Each GDC shall install, design, construct, operate, and maintain its Delivery Facilities in conformity with the requirements set forth in the GDC's operations, maintenance and emergency manuals, federal pipeline safety regulations contained in 49 Code of Federal Regulations ("CFR") Part 192, and Delaware Pipeline Safety Compliance Programs or their successor organizations.

3.2 Each GDC shall develop and maintain a System Planning and Modeling Program as described in Section 5.0 to ensure the safety, Reliability, and quality of Natural Gas Service of its Natural Gas Distribution System.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-4.0 Reliability and Quality Performance Benchmarks

4.1 The measurement of Reliability and quality performance shall be based on annual AOR and AOD calculations. The AOR and AOD calculations shall be derived using criteria outlined in the definitions of AOR and AOD. The AOR and AOD calculations shall include all Delaware customer Outages excluding Major Reliability Events.

4.2 Each GDC shall take measures to maintain its overall gas service Reliability and quality performance within the Benchmark standards that will be determined after GDCs have tracked and reported three years of AOR and AOD metrics data.

4.2.1 The three-year average AOR shall not exceed [placeholder for AOR target] outages. (To be determined after three years of data are available.)

4.2.2 The three-year average AOD shall not exceed [placeholder for AOD target] minutes. (To be determined after three years of data are available.)

4.3 Each GDC will be required to track AOR and AOD metrics beginning on 1/1/2021. After the GDCs submit the Reliability Performance Reports as required in Section 8.0, the Commission shall establish AOR and AOD Benchmarks for each GDC. The Benchmarks will be reviewed annually and may be reset based on each GDC's historical performance, reliability investments and comparisons to other GDCs, if available.

4.4 When performance does not meet the Acceptable Reliability Level, additional monitoring and enforcement actions that may be taken including the following: additional remedial review; requiring additional GDC reporting; conducting an informal investigation; initiating a formal complaint; requiring a formal improvement plan with enforceable commitments; requiring an implementation schedule; and assessing penalties and fines.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-5.0 Natural Gas Distribution System Planning and Modeling Program

5.1 Each GDC shall have a robust system planning and modeling program based on natural gas industry best practices designed to review, on an annual basis or more often as needed, issues with the Natural Gas Distribution System affecting safety and Reliability to proactively plan for system improvements to be incorporated in the various plans (annual GDC capital plans and Infrastructure, Safety and Reliability Plans). Best practices that should be incorporated into system planning and modeling programs include:

5.2 Each GDC shall develop and maintain a comprehensive prioritization program for analyzing the Reliability performance of its Natural Gas Distribution System during the course of each year, which shall include methods to measure and improve worst performing areas of the gas distribution system. Areas of prioritization may include replacement of aging infrastructure (cast iron, bare steel, aldyla plastic) and should tie into system planning and modeling program efforts. Natural Gas Distribution System areas are to be determined by the GDC.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-6.0 Infrastructure, Safety, and Reliability Plan

6.1 Each GDC shall submit annually a proposed rolling 5-year Infrastructure, Safety, and Reliability Plan ("ISR") identifying proposed capital spending necessary to maintain the Reliability and quality of its Natural Gas Distribution Services. The proposed ISR shall be submitted no later than April 30, 2021 or 90 days following the effective date of this regulation, whichever is later, and no later than April 30th every year thereafter. The initial report shall address 2021, and subsequent reports will address the current year in which it is submitted and four subsequent years. The proposed ISR shall be structured under the following major spending categories:

6.1.1 Mandatory

6.1.1.1 New business - Customer requirements

6.1.1.2 Facility relocations

6.1.1.3 Required Statutory and Regulatory Requirements

6.1.1.4 Reliability - emergency failures/system improvements

6.1.1.5 Infrastructure Replacement Programs

6.1.2 Non-Mandatory

6.1.2.1 Supply/Capacity/Load/System Pressure

6.1.2.2 Asset Condition

6.1.2.3 Other Reliability (LNG, regulator station upgrades)

6.2 Mandatory spending shall include investments required to comply with customer requests, facility relocations, statutory and regulatory requirements, to repair failed equipment and for infrastructure replacement programs. The proposed budgets may be for a combination of discrete projects and projects that are funded but whose specific scope has not yet been defined ("blanket projects").

6.3 Non-Mandatory spending shall include projects, programs, or other investments necessary to maintain or improve Natural Gas Distribution Services that are not included in the mandatory spending category. Projects or groups of Related Projects shall be supported with project authorization documents, including detailed cost estimates. Infrastructure replacement and Reliability-based programs shall be supported by guidelines or program documents. The proposed budgets may be for a combination of discrete projects and blanket projects.

6.4 To support each proposed annual budget, the proposed ISR shall describe:

6.4.1 How the GDC developed the spending plan and levels;

6.4.2 The justification, scope, system planning and modeling outputs; and

6.4.3 Estimated cost for each planned project of $1,000,000 or more.

6.5 The proposed ISR shall include the GDC's estimated cost of plant in service and cost of removal for each year of the five-year term.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-7.0 Review and Acknowledgement

7.1 Each ISR ("Plan") shall be submitted to the Staff and the DPA. Within the first 90 days following submission of each Plan, the GDC, Staff, and the DPA shall cooperate in good faith and schedule, if necessary, at least two sessions to meet and confer on the proposed Plan and discuss any proposed modifications.

7.2 No later than 120 days following the GDC's submission of each Plan to Staff and the DPA, the GDC shall file the proposed Plan with the Commission.

7.3 Staff and the DPA may submit comments on the Plan to the Commission by filing those comments within ten days of the GDC's filing of its proposed Plan.

7.4 The GDC has the right to file reply comments to Staff and the DPA comments to the Commission within ten days of their filings to the proposed Plan.

7.5 The Commission shall acknowledge that the Plan and any associated comments have been filed and that the Plan is consistent with the requirements of this regulation. Commission acknowledgement shall not constitute Commission pre-approval of any proposed capital spending necessary to maintain the Reliability and quality of the GDC's distribution services.

7.6 Any party may challenge the GDC's attempt to recover the amounts spent when the GDC seeks to include those amounts in rates.

7.7 The GDC's obligation to maintain the Reliability and quality of its Natural Gas Distribution System may necessitate executing on the Plan prior to the PSC's acknowledgement. In executing the ISR Plan, the circumstances encountered during the year may require reasonable deviations from the filed ISR Plan.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-8.0 Annual Reports

8.1 Reliability Performance

8.1.1 By April 30 of each year, each GDC shall file with the Commission an annual Reliability Performance Report ("RPR") providing an overall assessment of the state of system Reliability in the GDC's service territory for the previous calendar year activities. The RPR shall include an assessment of the results/effectiveness of Reliability objectives, planned actions, projects, and programs implemented to achieve the Acceptable Reliability Level. The RPR shall include the GDC's actual year-end performance measure results.

8.1.2 The RPR shall include the GDC's Delivery facilities' year-end performance measures as follows:

8.1.2.1 AOR and AOD measures:

8.1.2.1.1 AOR and AOD measured by Planned and Unplanned Outages for the current year and three-year average reflecting Delaware performance, classified by distribution systems as identified in subsection 4.4. and in total, as compared to the Benchmarks established in subsection 4.2.

8.1.2.1.2 AOR and AOD measured by Planned, Unplanned Outages and in total for the current and previous five (5) years compared to Benchmarks.

8.1.3 The RPR shall identify distribution systems that are identified by the GDC as having the poorest Reliability according to the criteria established in subsection 4.4.

8.1.3.1 Current and previous five (5) year summary level Outage data shall include:

8.1.3.1.1 Number of Outages by Outage type (Planned and Unplanned).

8.1.3.1.2 Number of Outages by Outage cause.

8.1.3.1.3 Total number of customers at year end.

8.1.3.1.4 Total number of customers that experienced an Outage.

8.1.3.1.5 Total customer minutes of Outage time by Outage type.

8.1.3.1.6 Total customer minutes of Outage time by Outage cause.

8.1.3.2 The GDC shall indicate any planned Corrective Actions to improve system performance and target dates for completion or explain why no action is required.

8.1.4 The RPR shall include a summary of each Major Reliability Event for which data was excluded, and an assessment of the measurable impact on reported performance measures.

8.1.5 In the event that an GDC's Reliability performance measure does not meet the performance measures established in subsection 4.2, the RPR shall include a description of system issues impacting Reliability and all Corrective Actions that are planned by the GDC; the estimated cost of Corrective Actions; and the target dates by which the Corrective Actions shall be completed. If no Corrective Actions are planned, an explanation shall be provided.

8.2 Infrastructure, Safety, and Reliability Plan Annual Report

8.2.1 By April 30th of each year, starting April 30, 2021, each GDC shall submit an ISR annual report simultaneous with ISR plan submission discussed in Section 6.0 for the previous year, which shall include:

8.2.1.1 Overall progress.

8.2.1.2 Budget to actual variance for each spending category, and discussion of the drivers of the variance. An explanation of the variance for any program or project exceeding $1,000,000 that was completed in the reporting year and exceeds +/- 10% of the proposed budget.

8.2.1.3 Comparison of actual versus planned project implementation and discussion of deviations, including delays and accelerated work; and an explanation for inclusion of any program, project, or group of Related Projects with a total cost estimate exceeding $1,000,000 that were not previously included in an ISR.

8.2.1.4 Comparison of infrastructure replacement program activities to the ISR, and discussion of deviations and drivers.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-9.0 Major Reliability Event Report

9.1 Each GDC shall notify the Commission of Major Reliability Events as soon as practical, but not more than 36 hours after the onset of a Major Reliability Event. Initial notification is required when more than 1000 of a GDC's customers experience a Sustained Outage during a 24-hour period.

9.2 Each GDC is expected to restore service to customers as quickly and safely as permitted by Major Reliability Event conditions. The GDC's restoration effort may be subject to review. The Commission may require subsequent Corrective Actions and impose penalties as permitted by Section 10.0 or other applicable Delaware law.

9.3 Within 15 business days after the end of a Major Reliability Event, the GDC shall submit a written report to the Commission, which shall include the following:

9.3.1 The date and time when the GDC's Major Reliability Event control center opened and closed;

9.3.2 The total number of customers out-of-service over the course of the Major Reliability Event in six-hour increments;

9.3.3 The date and time when 75%, 95% and 100% of customers affected by a Major Reliability Event were Restored;

9.3.4 The total number of service orders completed, by order type;

9.3.5 The time at which the mutual aid and non-company contractor crews were requested, arrived for duty and were released, and the mutual aid and non-contractor responses to the requests for assistance; and

9.3.6 A timeline profile in six-hour increments of the number of company crews, mutual aid crews, and non-company contractor crews working on restoration activities during the duration of the Major Reliability Event.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-10.0 Penalties and Other Remedies

10.1 Any GDCs subject to Commission regulation who violate any of the requirements of this regulation is subject to penalties and other remedial actions in accordance with this section and other applicable Delaware law.

10.2 No penalty shall be assessed except after a public hearing at which the GDC, Staff, the DPA, or any other affected person may present evidence. The Commission shall be responsible for assessing any penalty under this section, consistent with Delaware law.

10.3 A GDC shall be considered in violation of the AOR or AOD performance Benchmark standard when its actual results exceed the Benchmark standards as defined in subsection 4.2. However, no GDC shall be penalized before the Commission has established Benchmark standards in accordance with the procedure described in subsection 4.2.

10.4 Penalty assessments are payable as provided by Delaware statute.

10.5 Nothing in this section relieves any GDC from penalties that may be assessed due to non-compliance with any requirement set forth under any other federal, state or local regulation, statute, ordinance or order.

History

24 DE Reg. 405 (10/01/20)

26 Del. Admin. Code § 8003-11.0 Reporting Specifications and Implementation

11.1 Each GDC must maintain sufficient records to permit a review and confirmation of material contained in all required planning documents and reports. Reports shall be submitted electronically via Delafile to the PSC Secretary, with certification of authenticity by an officer of the corporation.

11.2 Subject to and without waiving the requirements of 29 Del.C. Ch. 100 (the "Freedom of Information Act" or "FOIA"), GDCs may request information required to be provided by this regulation to be classified as confidential, proprietary or privileged material. The GDC must attest that such information is not subject to inspection by the public or other parties without execution of an appropriate proprietary agreement. Each GDC requesting such treatment of information is also obligated to file one (1) additional electronic and paper copy of the information, excluding the confidential or proprietary information. The Commission, in accordance with the FOIA and 26 DE Admin. Code 1001, will treat such information as "confidential, not for public release" upon receipt of a properly filed request. The Commission, designated Presiding Officer, or Hearing Examiner shall resolve any dispute over the confidential treatment of information in accordance with the FOIA and 26 DE Admin. Code 1001.

History

24 DE Reg. 405 (10/01/20)