Renewable Portfolio Standard
Changes to Supply and Delivery Charges
Effective as early as May 2012, charges for compliance with Delaware's clean-energy goals will be moved from the supply part of the customer's monthly bill to the delivery part of the bill. Delaware electric customers are receiving a bill insert explaining this change.
Under Delaware law, customers can choose a separate company to generate their electricity, even though Delmarva Power still delivers the electricity over its system of poles and wires to the home or business. These separate companies are referred to as Third Party Suppliers and their supply charges, for most customers, appear on the supply charges section of the Delmarva Power bill (consolidated billing). For a few customers, such charges are shown on a separate bill provided by the Third Party Supplier (dual billing). Regardless, all customers get a Delmarva Power bill, which includes a section for delivery charges. The delivery charges represent the part of your monthly payment that goes to Delmarva Power for the services it provides. This portion of the bill is regulated by the Delaware Public Service Commission.
Soon, supply charges and delivery charges will change on the bill: Traditionally, the cost of acquiring renewable energy has been included in the supply portion of the bill (or, for some customers, a separate bill provided by a Third Party Supplier). These alternate energy sources diversify the energy portfolio and, by reducing dependence on traditional fuel sources, help Delawareans reduce air pollution. Because of changes in Delaware Law in 2011, Delmarva Power is now responsible for ensuring renewable energy compliance for all customers.
As a result, the cost of acquiring alternate energy sources will be moved from the supply section of the bill to the delivery section of the bill. This transition will honor existing contracts such that, if a Third Party Supplier is currently charging a customer for these alternate energy sources, Delmarva Power will not also charge the customer to provide them. As existing contracts expire and a Third Party Supplier no longer charges for these alternate energy sources, Delmarva Power will begin doing so in the delivery charge section of the bill. Furthermore, because the cost of acquiring alternate energy sources will vary from month to month, customers should see that the rate applied to the delivery charges also will vary from month to month.
If you have questions about this, please call Customer Care at 800-365-7117.