AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO THE PUBLIC SERVICE COMMISSION.
What changed between versions
The capital spending cap in Section 1008 was changed from SA 1's phased approach (a fixed $70,000,000 annual limit for 2026-2027, then 5% of rate base from 2028) to a straight 5% of rate base cap with no phase-in period. This makes the cap effective immediately and ties it to the company's asset value rather than a fixed dollar amount.
Section 306(a)(1) adds a phased interim rate mechanism: if the Commission has not decided within 7 months of filing, the utility may place 50% of the proposed increase into effect under bond, and 75% after 12 months. Section 306(c) allows a utility to put a rate into effect under bond 90 days after filing if the increase does not exceed 15% of annual gross intrastate operating revenues or $2,500,000 annually, whichever is less.
Section 316(b)(6) prohibits utilities with more than 25,000 customers from recovering attorney fees and external expert/consultant costs for distribution rate case proceedings that exceed the combined amount spent by Commission staff and the Division of the Public Advocate on similar fees.
SA 1 proposed adding 'Unless otherwise ordered by the Commission' before the capital spending cap, which would have given the Commission discretion to waive the limit. The final bill omits this language, making the 5% cap mandatory with no stated Commission override.
The rate summary table filing requirement in Section 301(f)(5) retains 'at least 30 days prior to the effective date' language. SA 1 had proposed changing this to 'after,' which was not adopted in the final bill.
Section 207(b) requires management audits of Commission-regulated electric distribution companies at least once every five years, with findings made public and provided to Commission Staff and the Division of the Public Advocate. Audit costs are explicitly non-recoverable in customer rates.
Section 301(f) establishes a Rate Transparency requirement: utilities must prepare, file, post on their website, and include in customer bills a Rate Summary Table itemizing every rate component (base rate, transmission, supply, riders, surcharges, adjustments) for each customer class.
Section 301A creates a Plain Language Standard requiring public utilities, Commission Staff, and the Division of the Public Advocate to use clear language in all public-facing communications and Commission submissions, avoiding technical terms where possible.
Section 302(a) mandates that the Commission use the 'average year rate base method' for electric and natural gas distribution companies when determining rate base, providing greater consistency across rate cases.
Section 304(c) authorizes a regulatory accounting review of transactions on a utility's books during any base rate change filing, including transactions with affiliated companies. The review can begin immediately upon filing and results must be shared with all parties. A utility is exempt if a prior review already covered the same test year.
Section 512(d) requires all Commission Orders to contain adequate support and rationale for conclusions, including specific facts and factors, and an explanation of major elements when accepting or denying settlement agreements.
