Delaware General Assembly

" Chapter 10. Electric Utility Restructuring.

(1) "Ancillary Services" means services that are necessary for the transmission and distribution of electricity from supply sources to loads and for maintaining reliable operation of the transmission and distribution system.

(2) "Broker" means a person or entity that acts as an agent or intermediary in the sale or purchase of, but that does not take title to, electricity for sale to Retail Electric Customers.

(3) "Commission" means the Delaware Public Service Commission.

(4) "DEC" means the Delaware Electric Cooperative and its successors.

(5) "Direct Access" means the right of Electric Suppliers and their Customers to use an Electric Distribution Company’s transmission and distribution system on a nondiscriminatory basis at rates, terms and conditions of service comparable to the Electric Distribution Company’s own use of the system to transmit or distribute electricity from any Electric Supplier to any Customer.

(6) "Distribution Facilities" means electric facilities located in Delaware that are owned by a public utility that operate 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.

(7) "Distribution Services" means those services, including metering, relating to the delivery of electricity to a Customer through Distribution Facilities.

(8) "DP&L" means Delmarva Power & Light Company and its successors.

(9) "Electric Distribution Company" means a public utility owning and/or operating Transmission and/or Distribution Facilities in this State.

(10) "Electric Supplier" means a person or entity certified by the Commission, including municipal corporations which choose to provide electricity outside their municipal limits (except to the extent provided prior to February 1, 1999), Broker, Marketer or other entity (including public utilities and their affiliates), that sells electricity to Retail Electric Customers, utilizing the Transmission and/or Distribution Facilities of an Electric Distribution Company.

(11) "Electric Supply Service" means the provision of electricity and related services to Customers.

(12) "Marketer" means a person or entity that purchases and takes title to electricity for sale to Customers in this State.

(13) "Retail Competition" means the right of a Customer to purchase electricity from an Electric Supplier.

(14) "Retail Electric Customer" or "Customer" means a purchaser of electricity for ultimate consumption and not for resale in this State, including the owner/operator of any building or facility, but not the occupants thereof, that purchases and supplies electricity to the occupants of such building or facility.

(15) "Standard Offer Service" means the provision of Electric Supply Service after the Transition Period by a Standard Offer Service Supplier to Customers who do not otherwise receive Electric Supply Service from an Electric Supplier.

(16) "Standard Offer Service Supplier" means an Electric Supplier that provides Standard Offer Service to Customers within an Electric Distribution Company’s service territory after the Transition Period.

(17) "Transition Period" means the period of time beginning with the implementation of Retail Competition and ending on the dates specified in §1004 of this chapter.

(18) "Transmission Facilities" means electric facilities located in Delaware and owned by a public utility that operate 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.

(19) "Transmission Services" means the delivery of electricity from supply sources through Transmission Facilities.

(1) The reliability of electric service to all Customers in this State shall be maintained.

(2) On and after the implementation dates set forth in §1003 of this chapter, Customers shall have the right to choose among Electric Suppliers.

(3) Nothing contained herein shall have the effect of abrogating or amending contracts between public utilities and any of their Customers in place on February 1, 1999.

(1) For Customers of DP&L, the implementation dates shall be as follows: October 1, 1999, for Customers with a peak monthly load of 1,000 kW or more; January 15, 2000, for Customers with a peak monthly load of 300 kW or more; and 18 months after enactment of this chapter for all other Customers.

(2) For Customers of DEC, the implementation dates shall be as follows: April 1, 2000, for Customers with a peak monthly load of 1,000 kW or more; July 1, 2000, for Customers with a peak monthly load of 300 kW or more; and 24 months after enactment of this chapter for all other Customers.

(1) Filing and contents of plan. On or before April 15, 1999, DP&L shall file with the Commission a detailed plan for implementing Retail Competition in DP&L’s Commission-designated service territory. Such plan shall include: (i) separate prices or rates for Electric Supply, Transmission, Distribution and other Services (which may later be combined for billing purposes); (ii) procedures for providing Direct Access for all Electric Suppliers; (iii) revised tariffs and rate schedules; (iv) an optional residential time of use rate with three daily time of use periods to be available for any residential Customer who elects such a rate structure; and (v) standards for reliability sufficient to measure variations in service reliability after the implementation of Retail Competition.

(2) Commission review of plan. The Commission shall review DP&L’s restructuring plan and, after an evidentiary proceeding, issue an order by August 31, 1999, adopting the plan as filed or modifying the plan as appropriate.

(1) Filing and contents of plan. On or before September 15, 1999, DEC shall file with the Commission a detailed plan for implementing Retail Competition in DEC’s Commission-designated service territory. Such plan shall include: (i) separate prices or rates for Electric Supply, Transmission, Distribution and other Services (which may later be combined for billing purposes); (ii) procedures for providing Direct Access for all Electric Suppliers; (iii) revised tariffs and rate schedules; (iv) DEC’s proposed Competitive Transition Charge, including the proposed method, recovery plan and determination of DEC’s Stranded and Transition Costs, as such terms are defined in §1007 of this chapter; and (v) standards for reliability sufficient to measure variations in service reliability after the implementation of Retail Competition.

(2) Commission review of plan. The Commission shall review DEC’s restructuring plan and, after an evidentiary proceeding, issue an order by February 28, 2000, adopting the plan as filed or modifying the plan as appropriate.

For the Transition Period identified in §1004(a) of this chapter, the following Delaware retail rate levels shall be determined by the Commission (without conducting a base rate case) as part of its decision on DP&L’s restructuring plan filed pursuant to §1005(a) of this chapter and shall thereafter remain in effect as provided below:

(i) The retail market price for Electric Supply Service (including losses to the Customer’s delivery point) shall be estimated and applied separately for each Customer rate class for each year of the Transition Period. Such prices shall be based upon and/or representative of regional wholesale electric market prices, plus a reasonable allowance for retail margin to be determined by the Commission. Once established, such prices shall not thereafter be changed by the Commission during the Transition Period, except as the result of an appeal of the Commission’s decision.

(ii) For each Customer rate class, the total of the actual base rates (excluding fuel costs) in effect on, and the fuel rates based upon the actual fuel costs for the 12 months ending, September 30, 1999 shall remain in effect for the Transition Period, less: (a) a base rate decrease of 7.5% percent of the total of those base and fuel revenues for each residential rate class; and (b) the above-specified retail market price in each respective year. However, upon application by DP&L, the Commission may change rates in the Transition Period for the recovery of any extraordinary costs as the Commission may, in its discretion, determine.

(iii) For each Customer rate class, the total of the rates established pursuant to subparagraphs (i) and (ii) of this subsection (a)(1) shall be separated (on a revenue-neutral basis) into rates for Electric Supply, Transmission, Ancillary, Distribution, nuclear decommissioning and other Services and may be combined for billing purposes.

(iv) Customers who obtain Transmission and/or Ancillary Services directly from the PJM Independent System Operator or from their Electric Supplier shall receive a credit against DP&L’s retail delivery rates equal to the then-applicable Federal Energy Regulatory Commission equivalent retail Transmission and/or Ancillary Services rates paid by that Customer or its Electric Supplier.

(v) For Customers who do not choose an alternate Electric Supplier or have returned to obtaining their electric supply from DP&L, the above-specified retail market price shall be the rate paid for Electric Supply Service for the Transition Period, subject to such regulations as the Commission may adopt pursuant to §1010(c) of this chapter for returning Customers.

(vi) For Customers who do choose an alternate Electric Supplier, the above-specified retail market price shall not be applicable for such Customer’s Electric Supply Service.

(vii) In addition to the above-specified rates and charges, and notwithstanding subparagraph (ii), a deferred fuel true up credit or charge shall be in effect for all Customers for up to 12 months following September 30, 1999, pursuant to §303(c) of this title.

(2) Rates in effect after the Transition Period.

(i) At the end of the Transition Period set forth in §1004(a) of this chapter, the retail market price under subparagraph (a)(1)(i) of this section shall become the Standard Offer Service price.

(ii) Such Standard Offer Service price shall be the applicable retail market price for Electric Supply Service for any Customers who have not chosen an alternate Electric Supplier or have returned to obtaining their Electric Supply Service from the Standard Offer Service Supplier, subject to such regulations as the Commission may adopt pursuant to §1010(c) of this chapter for returning Customers.

(iii) If DP&L is a Standard Offer Service Supplier, the Standard Offer Service price shall be revised by DP&L from time to time for each Customer rate class to be representative of the regional wholesale electric market price, plus a reasonable allowance for retail margin to be determined by the Commission for providing such Electric Supply Service. The Standard Offer Service price shall be reviewed from time to time by the Commission to determine whether it represents the regional wholesale electric market price, plus a reasonable allowance for retail margin. If the Commission has elected another Electric Supplier to be a Standard Offer Service Supplier as the result of the bidding process in §1010(a)(2) of this chapter, the Standard Offer Service price shall be the bid price.

(iv) In addition to the Standard Offer Service price or the alternative Electric Supplier’s supply price, each Customer shall pay the separate applicable rates for Transmission, Ancillary, Distribution, nuclear decommissioning and other Services. Such rates shall not include any generation or electric supply costs. By March 1, 2002, DP&L shall file a rate case quality cost of service study (consistent with the Minimum Filing Requirements in effect on February 1, 1999) and a proposal to reset its regulated rates to be applicable at the end of the Transition Periods. The Commission shall review these filings to determine the appropriate rates DP&L may charge its Customers for regulated services.

(v) Customers who obtain Transmission and/or Ancillary Services directly from the PJM Independent System Operator or from their Electric Supplier shall receive a credit against DP&L’s retail delivery rates equal to the then-applicable Federal Energy Regulatory Commission equivalent retail Transmission and/or Ancillary Services rates paid by that Customer or its Electric Supplier.

(vi) To the extent that any nuclear generating unit partially owned by DP&L has been sold, or otherwise disposed of, the nuclear decommissioning costs associated with such unit shall not be recovered from Customers after the Transition Period.

For the Transition Period identified in §1004(b) of this chapter, the following Delaware retail rate levels shall be determined by the Commission (without conducting a base rate case) as part of its decision on DEC’s restructuring plan filed pursuant to §1005(b) of this chapter and shall thereafter remain in effect as provided below:

(i) The retail market price for Electric Supply Service (including losses to the Customer’s delivery point) shall be estimated and applied separately for each Customer rate class for each year of the Transition Period. Such prices shall be based upon and/or representative of regional wholesale electric market prices, plus a reasonable allowance for retail margin to be determined by the Commission. Once established, such prices shall not thereafter be changed by the Commission, except as the result of an appeal of the Commission’s decision.

(ii) For each Customer rate class, the total of the actual base rates (excluding Purchase Power Costs) and the Purchase Power rates based upon the actual Purchase Power Costs for the 12 months ending March 31, 2000 shall remain in effect for the Transition Period less: (a) the above-specified retail market price in each respective year; and (b) the below-specified Competitive Transition Charge in each respective year. However, upon application by DEC, the Commission may change rates in the Transition Period for the recovery of any extraordinary costs as the Commission may, in its discretion, determine.

(iii) A Competitive Transition Charge shall be established by the Commission to recover Stranded Costs and Transition Costs, if any, pursuant to §1007 of this chapter. The Competitive Transition Charge shall be set as a separate charge at a level that will permit DEC to recover its allowed Stranded Costs and Transition Costs over the Transition Period.

(iv) For each Customer rate class, the total of the rates established pursuant to subparagraphs (i), (ii) and (iii) of this subsection (b)(1) shall be separated (on a revenue-neutral basis) into rates for Electric Supply, Transmission, Ancillary, Distribution nuclear decommissioning, Competitive Transition Charge and other Services and may be combined for billing purposes.

(v) Customers who obtain Transmission and/or Ancillary Services directly from the PJM Independent System Operator or from their Electric Supplier shall receive a credit against DEC’s retail delivery rates equal to the then-applicable Federal Energy Regulatory Commission equivalent retail Transmission and/or Ancillary Services rates paid by that Customer or its Electric Supplier.

(vi) For Customers who do not choose an alternate Electric Supplier or have returned to obtaining their electric supply from DEC, the above-specified retail market price shall be the rate paid for Electric Supply Service for the Transition Period, subject to such regulations as the Commission may adopt pursuant to §1010(c) of this chapter for returning Customers.

(vii) For Customers who do choose an alternate Electric Supplier, the above-specified retail market price shall not be applicable for such Customer’s Electric Supply Service.

(viii) In addition to the above-specified rates and charges, and notwithstanding subparagraph (ii), a deferred fuel true up credit or charge shall be in effect for all Customers for up to 12 months following March 31, 2000, pursuant to §303(c) of this Title.

(i) At the end of the Transition Period set forth in §1004(b) of this chapter, the retail market price under §1006(b)(1)(i) of this chapter shall become a Standard Offer Service price.

(ii) Such Standard Offer Service price shall be the applicable retail market price for Electric Supply Service for any Customers who have not chosen an alternate Electric Supplier or have returned to obtaining their Electric Supply Service from the Standard Offer Service Supplier, subject to such regulations as the Commission may adopt pursuant to §1010(c) of this chapter for returning Customers.

(iii) If DEC is a Standard Offer Service Supplier, the Standard Offer Service price shall be revised by DEC from time to time for each Customer rate class to be representative of the regional wholesale market price, plus a reasonable allowance for retail margin to be determined by the Commission for providing such Electric Supply Service. The Standard Offer Service price may be reviewed from time to time by the Commission to determine whether it represents the regional wholesale electric market price, plus a reasonable allowance for retail margin. If the Commission has elected another Electric Supplier to be the Standard Offer Service Supplier as the result of the bidding process in §1010(b)(2) of this chapter, the Standard Offer Service price shall be the bid price.

(iv) In addition to the Standard Offer Service price or the alternative Electric Supplier’s supply price, each Customer shall pay the separate applicable rates for Transmission, Ancillary, Distribution, nuclear decommissioning and other Services. Such rates shall not include any generation or electric supply costs. By September 1, 2004, DEC shall file a rate case quality cost of service study (consistent with the Minimum Filing Requirements in effect on February 1, 1999) and a proposal to reset its regulated rates to be applicable at the end of the Transition Period. The Commission shall review these filings to determine the appropriate rates DEC may charge its Customers for regulated services.

(v) Customers who obtain Transmission and/or Ancillary Services directly from the PJM Independent System Operator or from their Electric Supplier shall receive a credit against DEC’s retail delivery rates equal to the then-applicable Federal Energy Regulatory Commission equivalent retail Transmission and/or Ancillary Services rates paid by that Customer or its Electric Supplier.

(a) "Competitive Transition Charge" means the wires charge applied to the bill of every Customer receiving electric supply through the Distribution or Transmission Facilities of DEC, to allow DEC to recover its Stranded Costs and Transition Costs as determined by the Commission pursuant to this section.

(b) "Stranded Costs" means DEC’s electric generation related costs, including purchase power contract costs, incurred in meeting its public service obligations, that would be recovered under traditional cost of service regulation but which may not be recoverable in a competitive electric supply market, including, but not limited to: net generation plant investment costs, generation plant retirement costs, including nuclear plant decommissioning costs, spent nuclear fuel disposal costs, purchase power contract costs, and any similar or related costs.

(c) "Transition Costs" means the costs DEC incurs during the course of the transition to a competitive electric supply market that would be recovered under traditional cost of service regulation but which may not be recoverable in a competitive electric supply market, including, but not limited to: the costs of implementing a genuinely competitive retail market, personnel costs, the costs of purchasing, replacing or modifying systems, software, and other equipment; the costs of any physical plant rendered no longer used or useful; and any other similar or related costs attributable to the transition to a competitive electric supply market.

(d) DEC shall be permitted to recover all reasonably incurred, non-mitigable Stranded and Transition Costs. The amount and method of determining DEC’s Stranded and Transition Costs shall be decided by the Commission. The costs to be recovered shall be allocated in a manner that avoids, to the extent possible, inter-class or intra-class cross-subsidization.

(e) The Commission shall establish procedures for periodic review of the costs recovered through the Competitive Transition Charge.

(1) During the Transition Period, DP&L shall continue to have the obligation to serve all Customers in its Commission-designated service territory, including the connection of Customers, the delivery of electricity and the generation or acquisition of Electric Supply Service for Customers.

(2) Prior to the end of the Transition Period set forth in §1004(a) of this chapter, the Commission shall determine who the Standard Offer Service Supplier in DP&L’s service territory will be following the Transition Period, based on various factors including but not limited to price, reliability and overall quality of the Electric Supply Service offered. In determining the Standard Offer Service Supplier for DP&L’s service territory, the Commission may use an auction bidding process. The Commission shall promulgate rules and regulations for the bidding process and may: (i) negotiate directly with bidders; (ii) aggregate various distribution areas to attract more bidders; or (iii) choose more than one Standard Offer Service Supplier to provide Standard Offer Service. Nothing in the Commission’s rules or regulations shall prohibit DP&L or its affiliates from participating in the bidding process for post-transition Standard Offer Service. The Commission may also require DP&L to continue to be the Standard Offer Service Supplier or to supply a portion of the Standard Offer Service after the Transition Period. Any Standard Offer Service Supplier arrangement shall be periodically reviewed by the Commission to insure that those who use Standard Offer Service are provided Electric Supply Service that is safe and reliable.

(1) During the Transition Period, DEC, or affiliates thereof, shall have the obligation to serve all Customers in its Commission-designated service territory, including the connection of Customers, the delivery of electricity and the generation or acquisition of Electric Supply Service for Customers.

(2) After the Transition Period, in addition to Transmission and Distribution Service, DEC shall supply Standard Offer Service, as determined in accordance with §1006(b)(2)(iii) of this chapter, to Customers who: (i) have no choice regarding Electric Suppliers, (ii) do not choose another Electric Supplier, or (iii) have contracted for Electric Supply Service that is not delivered. The Commission may choose another Electric Supplier to provide Standard Offer Service to DEC’s Customers, through a Commission-supervised competitive bidding process or otherwise, similar to §1010(a)(2) above, only if DEC is unable to provide Standard Offer Service in its service territory or if it is established, after notice and hearing, that the Standard Offer Service rendered by DEC is inadequate to meet the requirements of the public necessity and convenience.

(1) Each Customer shall have the right to choose to receive separate bills from DP&L and from its Electric Supplier, or to receive a combined bill from either DP&L or its Electric Supplier, for Electric Supply, Transmission, Distribution, Ancillary and other Services, consistent with the regulations of the Commission.

(2) If the Customer does not elect a billing option, DP&L shall be responsible for billing Customers for all Electric Supply, Transmission, Distribution, Ancillary and other Services, regardless of the identity of the provider of Electric Supply Service.

(3) Customer bills shall contain sufficient detail to enable the Customer to determine the basis for all charges.

(4) During the Transition Period, DP&L shall continue to own all meters and perform all meter-reading functions. After the Transition Period, or earlier if requested by DP&L, the Commission may permit others to provide some or all of such metering functions on a competitive basis.

(1) DEC shall continue to bill each Customer for: (1) that Customer’s Electric Supply Service, regardless of the Electric Supplier, and (2) Transmission, Distribution, Ancillary and other Services.

(2) All Customers in DEC’s service territory shall continue to be members of DEC and the revenues for DEC’s services shall continue to be treated as member revenue to DEC.

(3) DEC shall continue to own and operate meters and perform meter reading functions in its Commission-designated service territory.

(1) Electric Suppliers required to obtain a certificate to provide retail Electric Supply Service shall pay an application fee of $750.00.

(2) For purposes of §§ 114 (Charges and Fees; Costs and Expenses of Proceedings), 115 (Public Safety; Regulatory Assessment; Definition of Revenue; Returns; Collection of Assessment), and 116 (Delaware Public Service Commission Revolving Fund; Deposit of Moneys Collected) of this title, an Electric Supplier shall be deemed to be a "Public Utility" as defined in §102(2) of this title.

(1) Has a capacity of not more than 25 kilowatts;

(2) Uses as its primary source of fuel solar, wind, hydro or other forms of renewable energy;

(3) Is located on the Customer’s premises;

(4) Is interconnected and operated in parallel with an Electric Distribution Company’s Transmission and Distribution Facilities; and

(5) Is intended primarily to offset all or part of the Customer’s own electricity requirements.

(1) No such transaction shall result in the termination or impairment of the provisions of any labor contract negotiated by a duly certified or recognized labor organization, collective bargaining agent, or other representative of the DP&L employees affected by such a transaction;

(2) Any such labor contract shall continue in effect with respect to all DP&L employees covered thereby until its termination date, unless otherwise agreed by the parties thereto or their legal successors;

(3) The sale, merger or acquisition of DP&L’s generation or other utility assets in this State shall include a provision that the purchasing, merging or new entity shall offer to hire its initial union-represented employee complement from among DP&L’s union-represented employees at the facilities being sold, merged or acquired at the time of the sale, merger or acquisition;

(4) The other party to the transaction shall bargain in good faith with the duly certified or recognized labor organization, collective bargaining agent, or other representative that is the signatory to the labor contract referred to in subsection (2) above in advance of the termination date of that labor contract for the purpose of extending or modifying such contract, as the parties thereto may agree.

(5) DP&L and the existing collective bargaining agents shall bargain in good faith to assure that any adverse effects on union-represented employees affected by such transaction are reasonably and satisfactorily mitigated. Such mitigation measures may include, but are not limited to, benefits such as training or re-training, severance pay and continued health care coverage.

"(2) ‘Public utility’ includes 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, any natural gas, electric (excluding Electric Suppliers as defined in §1001 of this title), water, telecommunications (excluding telephone services provided by cellular technology or by domestic public land mobile radio service) service, system, plant or equipment."

"(9) The terms "Ancillary Services," "Distribution Facilities," "Distribution Services," "Electric Distribution Company," "Electric Supplier," "Retail Competition," "Retail Electric Customer," "Transmission Facilities," and "Transmission Services," as used in Chapters 1, 2 and 3 of this title, shall have the same definitions as set forth in §1001 of this title."

"(a) (1) Subject to the provisions of subsection (b) of this section and §§102, 201, 202 and Chapter 10 of this title, and excluding Electric Suppliers, no individual, co-partnership, association, corporation, joint stock company, agency or department of the State, cooperative, or the lessees, trustees or receivers thereof, shall begin the business of a public utility nor shall any public utility begin any extension of its regulated public utility business or operations without having first obtained from the Commission a certificate that the present or future public convenience and necessity requires or will require the operation of such regulated public utility business or extension."

"(c) (1) Subject to the provisions of Chapter 10 and §706(d) of this title and excluding Electric Suppliers, no public utility shall abandon or discontinue, in whole or in part, any regulated public utility business, operations or services provided under a certificate of public convenience and necessity or otherwise which are subject to jurisdiction of the Commission without first having received Commission approval for such abandonment or discontinuance."

(1) A Retail Electric Customer has the right to lease or own (satisfied by partial ownership) facilities on its own property to transmit or distribute electricity to itself.

(2) Where a Retail Electric Customer owned transmission and/or distribution facilities that, at any time prior to February 1, 1999, were located on property owned by such Customer, and were used to transmit or distribute electricity to buildings, facilities, or equipment on such property, and that Retail Electric Customer sold or leased a portion of such property and/or buildings, facilities or equipment thereon to third parties, then that Customer shall have the right to continue to own such facilities and to transmit or distribute electricity to both itself and to any such third parties, with separate metering for each third party. Furthermore, if such Customer desires to expand such facilities to serve additional buildings, facilities or equipment or additions thereto on such property used by such third party, then that Customer and the Electric Distribution Company shall jointly determine the terms and conditions of the ownership, installation, operation, and maintenance of the expanded facilities. Any disagreement in this regard shall be presented to the Commission for resolution. If the Customer utilizes its own facilities to transmit or deliver electricity to any such third party, the Customer shall not charge the third party any amount that exceeds its actual costs of providing such services.

(3) Any person shall have the right to lease or own transmission and/or distribution facilities to transmit or deliver electricity from an electric generation facility, which qualifies under the Public Utilities Regulatory Policy Act of 1978 or its successor, to its host Customer on the same or on any immediately adjacent property. Should such person desire to have electricity transmitted or delivered to not more than five other nearby Customers who are new Customers or who have been receiving electricity through the then-existing facilities of an Electric Distribution Company, such person must first contact the Electric Distribution Company to jointly determine how such service shall be provided. Should agreement not be jointly reached, the matter shall be presented to Commission for resolution. The options that may be considered include the following:

(i) The Electric Distribution Company may continue to provide such service over its then-existing facilities at Commission-approved rates; or

(ii) New facilities may be installed by the Electric Distribution Company to provide such service, in which case the Customers shall reimburse the Electric Distribution Company for the depreciated book value, plus removal costs less salvage value, of any then-existing facilities that will no longer be used by the Electric Distribution Company. In this case, the regular Commission-approved rates shall not be applicable for such new facilities. Instead, a separate facilities charge rate will be developed and billed monthly to such Customers, based upon the actual installed cost of such new facilities, including normal levels of operating expenses, taxes and return.

(a) The Commission may require every public utility to file with the Commission complete schedules of every classification employed and of every individual or joint rate, fare, or charge made, charged or executed by the public utility for any regulated product or service supplied or rendered within this State. Every application for a certificate of public convenience and necessity shall include a proposed tariff for approval by the Commission. A copy of all regulated tariffs then in effect shall be available for inspection by customers at each public office of the utility where applications for service are received.

(b) This section shall not apply to charges made for Electric Supply Service or for Transmission or Ancillary Services on and after October 1, 1999 for Delmarva Power & Light Company and April 1, 2000 for Delaware Electric Cooperative.

"(b) The Commission shall require all utilities operating within its jurisdiction to produce evidence at a public hearing of the need for a change in the fuel adjustment as a part of the rate-making procedure. Notwithstanding any other provisions of this chapter, such fuel adjustment may include a separate component to adjust for or correct for any difference between actual allowable fuel costs incurred by the utility and fuel costs recovered through base rates and the fuel adjustment. Notice of such hearing shall be advertised in at least 1 newspaper in each of the 3 counties. As in other applications before the Commission, the burden of proof that the fuel adjustment change is required shall be upon the utility. No change in the fuel adjustment shall be authorized by the Commission except by affirmative vote of the majority of all members appointed to the Commission. The Commission shall consider the evidence for and against the proposed change as it would all evidence in any other rate-making procedure. Consistent with the introduction of customer choice in the supply of electricity pursuant to Chapter 10 of this title, and subject to subsection (c) below, this section shall have no application to rates in effect on and after October 1, 1999 for Delmarva Power & Light Company and April 1, 2000 for Delaware Electric Cooperative."

"(c) Notwithstanding subsection (b) above, the Commission shall determine the actual over-recovered or under-recovered deferred fuel balance for each Electric Distribution Company as of September 30, 1999 for Delmarva Power & Light Company and March 31, 2000 for Delaware Electric Cooperative. Such over-recovery or under-recovery shall be either returned to or collected from that Electric Distribution Company’s Retail Electric Customers by a mechanism that is designed to provide a full credit or charge of the actual deferred fuel balance and that the Commission shall adopt and order to be effective no later than 90 days after such dates. The Commission shall adopt either a single bill credit or charge mechanism or an alternative per kilowatt-hour credit or charge mechanism to be in effect for up to a period of twelve months, depending upon the relative size of the actual amount to be credited or charged to Retail Electric Customers. No further adjustments of such amounts shall be required."