Status: The State's one pilot choice program
was discontinued as of October 31, 2001. |
Overview: In November 2000, Connectiv Power
Delivery Company (now doing business as Delmarva Power) withdrew its earlier
request to extend and revise its customer choice pilot program beyond
October 31, 2001. The program had been in existence since 1999, but the
surge in natural gas prices in 2000 meant that marketer prices were higher
than gas costs under the utility's sales service, which reduced program
participation. The company had 609 cancellations from October 1999 to
April 2000. By the start of the 2000-2001 heating season, only 432
customers were enrolled. The company's gas cost rate was designed to
provide an annual levelized rate to moderate gas price changes, while
marketers rely on more market-responsive pricing. Five marketers were
certified to participate in the pilot, but by November 2000 all but one
had withdrawn.
The Delaware Public Service Commission (PSC) had
directed Connectiv to consider establishing a new program, but after a
series of quarterly meetings the company decided that another pilot was
not advisable at the time. As of December 2007, the PSC had not received
any indication that Delmarva Power (formerly known as Connectiv) would be proposing a retail choice program for
residential and small commercial customers. However, Chesapeake Utilities Corporation (the other
local distribution company in the State) did propose some changes to its transportation program as part of its most recent base rate proceeding, PSC Docket No. 07-186, with a goal of exiting the merchant function over several phases. The first phase proposed in this docket would lower usage levels for small commercial customers, allowing them to be eligible for transportation and service by third-party suppliers. The proceeding is currently in the midst of review. |
EIA State Data: In 2006,
Delaware
had 141,276 residential and
12,345 commercial customers. They consumed 9 and 8 billion cubic feet of
natural gas, respectively. The average prices paid for natural gas purchased
from local distribution companies by residential and commercial customers
were $16.93 and $15.33 per thousand cubic feet, respectively. |
Legislative and Regulatory Actions on
Retail Unbundling
Summary: In July 2001, the Delaware Public Service Commission (PSC) approved Connectiv Power Delivery's request to discontinue its 2-year pilot choice program for residential and small commercial customers as of November 1, 2001. The program had started on November 1, 1999, with customer enrollment held from July 1 through October 8, 1999, and marketer certification during May and June 1999. Up to 15,000
residential and 1,500 small commercial customers (about 15 percent of its
small retail customers) could enroll in the program on a first-come,
first-served basis. Five marketers had been certified as gas suppliers for
the pilot. |
Regulatory and Legislative Actions
Regulatory
Action |
07/07 |
Chesapeake Utilities Applies for Rate Increase and New Service Offerings, PSC Docket No. 07-186.
Chesapeake filed a base rate application that includes extensive proposed changes to its existing rate design and a depreciation study. It also includes a proposal to lower usage levels for small commercial customers, allowing them to be eligible for transportation and service by third-party suppliers. The company would eventually like to move toward exiting the merchant function. |
|
07/01 |
Connectiv
Settlement Agreement Approved, PSC Docket No. 00-315, Order
5756. The settlement includes four main provisions: (1) ends pilot program, (2)
establishes process for filing a new application for a pilot, (3)
sets new application requirements, which include changes in the
billing system, third-party supplier rules, ongoing enrollment
provisions, and possible changes to its gas cost recovery mechanism (such as monthly
or quarterly adjustments), and (4) requires "interim reports" on
progress updates on 9-1-01, 12-01-01, and 3-01-02. |
|
01/01 |
Connectiv
Decides Not to Extend Pilot Program After October 31, 2001.
Company withdrew its earlier testimony and request to extend pilot
program. The examiner suspended the hearing schedule. Parties will
work on reaching a settlement agreement. Issues are still
outstanding in a related docket (No. 00-108) regarding conversion of
the company's billing system (filed 2/00). |
|
06/00 |
Request by
Connectiv to Extend and Revise Customer Choice Pilot Program,
PSC Docket No. 00-315. Request suspended pending review. At issue
are concerns about billing and metering services. |
|
04/99 |
PSC Approval of
Customer Choice Pilot Program, PSC Docket No. 98-524, Order No.
5070, Connectiv Delivery Tariffs effective 5/1/99. The PSC approved
a 2-year pilot choice program starting 11/1/99 for 15 percent of
Connectiv's small retail customers. Delmarva Power & Light (now
doing business as Connectiv Power Delivery) had first filed its
proposal on December 1, 1998, but the application was suspended
(Order 4979) until completion of evidentiary hearings. Five parties
(Delaware Association of Alternative Energy Providers, UGI Energy
Services, Connectiv Energy, Chesapeake Utilities Corp. and the
Division of the Public Advocate) intervened in the proceedings. A
negotiated settlement was reached in March and is reflected in the
approved tariff. Customer enrollment is to occur from July through
September 15 and marketer certification during May and June 1999.
Connectiv Power Delivery will continue to provide metering and
billing services and will be the supplier of last resort. Marketers
are subject to a PSC application fee, LDC bonding requirements, and
a PSC assessment if gross revenues exceed $10,000. The tariff
specifies a marketer code of conduct that includes bill dispute
procedures, contract specifications, and customer protection
measures. | |