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Renewable Portfolio Standard

Delaware Bill Changes for Clean Energy Costs FAQ

Starting in May 2012, the cost of complying with Delaware's clean energy goals will be shifted from the "supply" portion of Delaware customers' bill to the "delivery" portion of the bill. All Delaware electric customers are receiving a bill insert explaining this change.

Why are these bill changes occurring?
Delmarva Power is working with all Third Party Suppliers on transitioning these clean energy charges from the supply portion of the customer's bill to the delivery portion of the bill. When the Third Party Supplier has ceased charging for the cost of providing renewable and clean energy, Delmarva Power will then begin providing this service and charging for it in the delivery portion of the bill.

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.

How soon will these changes occur?
For Standard Offer Service (SOS) customers, the charges will immediately be moved from the supply charges section of the bill to the delivery charges section of the bill. For most Third Party Supplier customers, the change also will be moved immediately except for a small percentage with existing Renewable Portfolio Standard contract obligations. For these customers the charge will be moved to the distribution part of the bill when the contract expires. It will remain in the supply charge until that time. In general, the total bill remains the same, but the location of the charges on the bill will change, from supply to delivery.

Because the cost of buying clean energy is for supply, why is it now going to be considered a delivery charge?
Delmarva Power is now required by Delaware State law to purchase clean and renewable energy for all of its customers. Charges that apply to all customers are classified under the delivery portion of the bill, even if some of those costs are supply related.

Will I see these charges as a separate line item on the bill?
No. Much like many of the other charges in our delivery section of the bill, these items will be rolled-up into a single delivery charge.

How does this affect lighting accounts?
Lighting accounts will show a separate line item because the charge is a kilowatt-hour charge and not a per-light charge.

Can I get any more detail about the specific clean energy costs affecting my overall Delivery Charge?
Yes. You can visit our web site at www.delmarva.com and click on our "Your Home" "Choices and Rates" and "Delaware". If you're a Delaware electric customer, you'll want to open the Delaware Electric Tariff for more information on the specific clean energy costs.