HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 80

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO RENEWABLE ENERGY PORTFOLIO STANDARDS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 354, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 354. Renewable energy portfolio standards, eligible energy resources and industrial exemption.

(a) The total retail sales of each Retail Electricity Product delivered to Delaware end-use customers by a commission-regulated utility or municipal electric company during any given compliance year shall include a minimum percentage of electrical energy sales with eligible energy resources and solar photovoltaics as follows:

SCHEDULE I

Compliance Year     Minimum Cumulative Percentage     Minimum Cumulative Percentage (beginning June 1st)     from Eligible Energy Resources     from Solar Photovoltaics*

2018       17.50%           1.75%

2019       19.00%           2.00%

2020       20.00%           2.25%

2021       21.00%           2.50%

2022       22.00%           2.75%

2023       23.00%           3.00%

2024       24.00%           3.25%

2025       25.00%   10%         3.50%

2026       25.50%   10%         3.75%   3.50%

2027       26.00%   10%         4.00%   3.50%

2028       26.50%   10%         4.25%   3.50%

2029       27.00%   10%         4.50%   3.50%

2030       28.00%   10%         5.00%   3.50%

2031       30.00%   10%         5.80%   3.50%

2032       32.00%   10%         6.60%   3.50%

2033       34.00%   10%         7.40%   3.50%

2034       37.00%   10%         8.40%   3.50%

2035       40.00%   10%         10.00%   3.50%

2036       11%           3.75%

2037       12%           4.00%

2038       13%           4.25%

2039       14%           4.50%

2040       15%           5.00%

* Minimum Percentage from Eligible Energy Resources Includes the Minimum Percentage from Solar Photovoltaics.

SYNOPSIS

The Renewable Portfolio Standard (RPS) is the percentage of electricity that utilities must source from renewables. This is presently set at 25% and will increase annually, culminating at 40% in 2035.

Delaware does not currently have enough renewable energy to meet the present mandate, let alone future RPS requirements. Renewable energy is also in short supply on the regional power grid. If it is available, consumers are paying additional distribution charges to transmit it to Delaware. If renewable energy is not obtainable, Delaware utilities are paying penalties to the state for failing to achieve the RPS mandate. In each of the last two years, Delmarva Power has spent about $13 million annually in such state mandated compliance fees. All these cost multipliers are being passed along to consumers, making power more expensive for Delaware ratepayers.

This bill recognizes the current flawed public energy policy that has resulted in renewable energy demand significantly outpacing supply. This legislation seeks to provide relief to Delawareans by rolling back the Renewable Portfolio Standard to 10% and maintaining the RPS requirement for the next 10 years, providing sufficient time for renewable generation capacity to meet demand. After the 10-year period expires, the RPS percentage will resume scheduled annual increases.