26 Del. C. § 207: Audits and access to, inspection and examination of utility’s property, records, etc.

(a) The Commission, by or through its members or duly authorized representatives, shall at all times have access to and the right to inspect and examine any and all books, accounts, records, memoranda, property, plant, facilities and equipment of public utilities. Every public utility shall furnish to the Commission, within such reasonable time as the Commission may order, any information with respect to its books, accounts, records, memoranda, property, plant, facilities, equipment, service, and operations, which the Commission may require in aid of any inspection, examination, inquiry, investigation, or hearing, or in aid of any determination of the value of its property, or any portion thereof, including copies of accounts, records, books, maps, inventories, appraisals, valuations, contracts, reports of engineers, and other data, records and papers; and shall grant to all authorized agents of the Commission access to its premises, property, plant, facilities and equipment and its books, accounts, records and memoranda when requested to.

(b) Management audits of public utilities under the jurisdiction of the Commission.

(1) The Commission shall provide for management audits of any Commission-regulated electric distribution company. The management audits shall include an examination of management effectiveness and operating efficiency. Management audits shall be conducted at least once every 5 years unless the Commission finds that a specific management audit is unnecessary. A summary of all management audits prepared pursuant to this subsection shall be made public and a complete copy of the audit shall be provided to Commission Staff and the Division of the Public Advocate.

(2) The Commission may require a management audit under this subsection to be performed by 1 or more independent audit or consulting firms ( “contracting firm” ). In such case, the Commission, after consultation with the public utility and the Division of the Public Advocate, shall select the contracting firm and require the public utility to enter into a contract with the contracting firm. The terms of the contract shall include payment of the contracting firm by the public utility of all reasonable expenses directly related to the performance of the contract, as well as their preparation and presentation of reports and testimony in any contested litigation which may be undertaken as a result of the audit. The contract shall require the contracting firm to work under the direction of the Commission. Neither the public utility, Commission staff, the Division of the Public Advocate, nor any entity other than the contracting firm shall have editorial control over or input into the contracting firm’s findings and recommendations, provided, however, that the public utility shall be provided reasonable opportunity to review the findings and recommendations prior to the findings and recommendations becoming final and to comment on any material misstatements the public utility believes exist in the findings and recommendations, and shall be entitled to request that any trade secret, commercial or financial information, or other privileged or confidential information that would be excluded from disclosure under Delaware law or regulations, including the Delaware Freedom of Information Act, 29 Del. C. 10001, et seq., be redacted from any public version of the findings and recommendations. Costs for management audits shall not be recoverable in customer rates.