Delaware

Restructuring Overview  |  Public Benefits  |  Restructuring Resources  |  Consumer Protection

Legislation Passed
Electric Y Gas Y

Electric: 1999, HB 10

Gas: 1999, PSC Order No. 5756

Electric
Overview

• 1999-2001: The restructuring law opened the electric power industry to competition on a phased-in schedule for the state’s two major utilities, beginning October 1999 with industrial customers of Conectiv (Delmarva Power & Light) and completed by April 2001.
• 2001: In the merger settlement for Conectiv-Pepco, residential electric rates were frozen until March 2006.

Choice Status

• There are no alternative suppliers currently serving residential customers in Delaware.

Natural Gas
Overview

• In April 1999, the Delaware Public Service Commission (PSC) approved a 2-year pilot choice program for residential and small commercial customers of Connectiv Power, delivery starting November 1, 1999. The program saw five alternate suppliers and approximately 7,800 customers signed up to participate.
• Subsequent to a rise in wholesale market prices in gas in May 2000, competing suppliers withdrew from the program. With the withdrawal of the competitive suppliers in the pilot program, Conectiv Power Delivery once again became the supplier of natural gas to all the pilot participants.
• As of December 2001, the PSC was considering a docket that would extend the pilot program.

Choice Status

• There are no competitive suppliers serving residential customers in Delaware.

Choice education
Delaware Electric Supply Choice
www.state.de.us/electric
This state website describes electric competition in Delaware, gives suggestions for how to shop for an electric supplier, and lists suppliers operating in the state.

Suppliers
Electric: www.state.de.us/electric/supplierslist.html
Gas: www.state.de.us/delpsc/naturalgas/ngsuppliers.html

Public Benefits

Delaware has two system benefits charges. One is an energy efficiency "incentive" program, administered by the state Economic Development Office. The other, administered by the Department of Health and Social Services, is used for low-income programs. The state's average annual fund from system benefits charges is $2.6 million. Of that, $1.5 million is used for energy efficiency programs, $300,000 for renewable energy programs, and $800,000 for low-income programs. (Click here for details on the state’s low-income energy and general residential energy programs.)

State Restructuring Resources

Utility Regulatory Commission
Delaware Public Service Commission
1-800-282-8574
www.state.de.us/delpsc/

Consumer advocate
Division of the Public Advocate
1-888-607-2427
www2.state.de.us/publicadvocate

Grassroots groups
Low Income Electric Consumers Interest Group
Richard D. Abrams, Esq.
302-573-4800
rabrams@hfddel.com

Consumer Protection

Disconnection policy

• Delaware prohibits disconnection of residential electric or natural gas service from November 15 through April 15 for nonpayment if the National Weather Service forecasts the temperature to be 20° F or below on the day the customer’s service is to be disconnected.
• Service cannot be disconnected to residential customers when a medical professional certifies that such an action would result in a decline in the health of the customer or a permanent household resident.
• An electric supplier must provide 30 days’ prior written notice to the customer and the electric distribution company serving the customer before terminating service.
• An electric distribution company has the right to discontinue public utility service as provided by the Commission’s rules and/or tariff upon 30 days written notice to any electric supplier serving the customer.
• If an electric distribution company terminates service to a customer, the electric supplier’s contract with the customer is also terminated.

Customer service

• An electric supplier has the right not to serve a customer, except where such discrimination is otherwise prohibited.
• Electric suppliers must obtain signed contracts, based on a standard contract, from customers before providing service. The contract must be signed and dated by the customer.
• Marketers must notify the electric distribution company of a customer’s contract with an electric supplier no later than two business days from receipt of the contract, and the electric distribution company must send the customer a letter confirming the selection within two business days.
• The confirmation letter must notify the customer that the service will be changed unless the electric distribution company receives a written rescission from the customer on or before the date specified in the letter, 10 calendar days from the date of the letter.
• If the electric supplier makes changes to its standard contract form, the supplier must submit these changes to the PSC staff for review and comment. The electric supplier must file a revised contract 21 calendar days before using it. PSC staff have the authority at any time to require changes to a standard contract, if it determines that the contract is not consistent with rules for certification and regulation of electric suppliers.
• Any price term must be consistent with pricing terms in a customer's contract with his/her electric supplier. The electric supplier must provide 30 days written notice to its customers of any price term changes.
• The electric supplier must provide the customer with a copy of its contract that includes the terms and conditions of service. All contracts offered should be in clear and plain language and include explicit terms and conditions, which at a minimum should contain the following:

1. A clear statement of the contract’s beginning and ending dates;
2. The price stated in cents per kWh or a clear and unambiguous statement of the precise mechanism or formula by which the price will be determined;
3. A complete list of any other fees, including early termination penalties, late fees, and interest charges that can be imposed on the customer;
4. A statement of the electric supplier’s termination rights, explaining the specific conditions under which the electric supplier may terminate service, and the customer’s rights to terminate the contract;
5. A statement in residential and small commercial contracts that customers may seek relief from the Commission in any dispute they have attempted to resolve with the electric supplier;
6. The electric supplier’s address, local or toll-free telephone number, the electric distribution company’s emergency telephone number, and the Commission’s toll-free telephone number;
7. A statement that the customer should call the electric distribution company in the event of an electric-related emergency, such as a power outage; and
8. A statement informing a residential customer of the right to terminate the contract upon 30 days’ written notice to the electric supplier if the customer relocates outside the service area of electric the distribution company.

• Each electric supplier must send each customer a complete copy of its contract, which includes all terms and condition of service, no later than two business days after receipt of the contract from the customer.

Right to cancel

• Customers have 10 calendar days from the day the utility sends the confirmation letter to rescind their selection.

Billing and collections

• The bill should be easy to understand and must contain the following information:

1. The name, address, and local or toll-free telephone number of the electric supplier;
2. If different from the electric supplier, the name, address and toll-free telephone number of the electric distribution company;
3. The due date for payment;
4. An itemized list of each service or product billed for the current billing period;
5. Electricity consumption including whether the consumption was based on actual recorded usage or estimated usage;
6. The actual cents per kWh (or the appropriate block charges or other pricing mechanism) charged to the customer for the customer's actual usage (or estimated usage) of electricity for the current billing period;
7. The total charge for each service or product;
8. The amount of payment or other credit applied to customer's outstanding balance during the billing period; and
9. The amount still owed by the customer from the previous billing period.

Supplier licensing

• All electric suppliers must obtain an electric supplier certificate from the Commission to sell electric supply service to or arrange the purchase on behalf of retail electric customers prior to offering contracts to customers or commencing service. Applicants must demonstrate that they possess the technical, financial, managerial and operational ability to adequately serve the public as electric suppliers.
• Each applicant must submit a non-refundable application fee of $750.
• An electric supplier that requires a deposit or prepayment from a customer must file with a security in an amount approved by the Commission.

Slamming/Cramming

• If the PSC determines that an electric supplier has slammed a retail electric customer, that supplier may be subject to penalties imposed by the PSC through a hearing process.
• An electric supplier that causes a customer to be transferred to the electric supplier's electric supply service, without obtaining an executed, unrescinded contract, is in violation of this slamming rule. In such a case, the electric supplier must void and/or refund any charges it has imposed on the slammed customer. The customer will only be liable to its authorized electric supplier for future service at a rate that is no more than the rate the customer paid before the slamming incident occurred.
• Cramming restrictions: If the PSC determines that an electric supplier has billed unauthorized charges to a retail electric customer, that electric supplier may be subject to penalties imposed by the Commission through a hearing process.
• An electric supplier that has imposed unauthorized charges on a retail electric customer must void and/or refund all of those charges to the customer.

Telemarketing

• All electric suppliers are prohibited from using telemarketing to solicit customers. This prohibition does not include initial contact by any medium other than a voice telephone call or a customer's telephone response to any non-telephone initial contact.

Fraud

• Electric suppliers and their agents cannot use telemarketing to solicit customers. A customer may agree to allow an electric supplier to supply information by voice telephone calls. An electric supplier may receive telephone calls or telephone customers in reply to a customer’s telephone calls.
• Suppliers cannot make misrepresentations or use false or deceptive practices in solicitations, advertising or marketing materials.
• Suppliers cannot charge customers for services not authorized in the contract, or authorized in the contract in a deceptive manner so that the customer was not reasonably aware of the nature or price of the service when the contract was signed.
• Suppliers cannot transfer a customer from another electric supplier without the customer’s authorization.
• If an electric supplier offers the customer a check, prize, or other incentive, which requires a signature, that signature cannot be used as the contract signature.

Dispute resolution

• Customers should first notify the electric supplier of their complaints. If a customer notifies the electric supplier with a complaint, the electric supplier must use good faith efforts to respond to and resolve the complaint. A supplier must have a sufficient number of customer service representatives to handle its customers' inquiries and complaints.
• If customers and electric suppliers are not able to come to a resolution, the electric supplier must inform customers that they may contact the PSC.
• The electric supplier must prepare and maintain a report of these complaints and keep these reports on file for two years.

Disclosure

• Each electric supplier must file a report with the PSC disclosing the aggregate proportions of fuel resource mix for the electricity supplied to its customers in Delaware for each quarter during the year. The reports must include:

1. The total number of customers by each customer class served during that quarter;
2. The total amount of electricity (kWh or MWh) supplied to each customer class; and
3. The fuel resource mix by percentage for coal, oil, natural gas, nuclear, hydro, solar, wind, biomass, geothermal, and other.

• Each electric supplier must include in its contract a disclosure of the Green Power percentage in the fuel resource mix.

Advertising/marketing/trade practices

• An electric supplier or its marketing or advertising agent must not make misrepresentations or use deceptive practices in its direct solicitations, advertising or marketing materials.
• An electric supplier or its marketing or advertising agent must comply with all federal, state or local laws applicable to advertising or marketing products or services.

Privacy

• An electric supplier cannot release customer information without the written authorization of the customer, and that authorization must be separate and apart from the electric supply service contract.
• An electric supplier must maintain all customer information as confidential and proprietary.
• Each electric supplier must retain customer account records for two years.