Delaware · Through 2026-08-27 (85 Del. Laws, c. 453, 455-458, 460)

26 Del. C. § 317: Rates for large energy use facilities.

(a) Commission-regulated electric utilities must, within 180 days after finalization of the regulations under § 203G of this title, establish a classification of service for retail electricity consumers that are large energy use facilities. The classification of service must be separate and distinct from classifications of service for other commercial or industrial retail electricity consumers and have its own tariff schedule.
(b) All Commission-regulated electric utilities shall develop a load shed protocol to allow large energy use facilities to be curtailed in anticipation of or during emergency conditions, including the installation of any necessary equipment or technology before a customer is interconnected. This subsection applies only to a load interconnected after December 31, 2026.
(1) The load shed protocol, to the extent feasible and consistent with reliability and safety, shall do all of the following:
a. Require the pre-emergency curtailment of large energy use facilities subject to directives from the PJM Interconnection, L.L.C. (“PJM”) to the Commission-regulated electric utility in accordance with applicable PJM requirements.
b. Require the curtailment of noncritical large energy use facilities prior to the curtailment of other non-critical loads during a pre-emergency or emergency reliability event.
c. Require the curtailment of critical large energy use facilities prior to the curtailment of other critical loads during an emergency reliability event.
d. Include clear performance expectations and consequences for noncompliance.
e. Require a large energy use facility to inform potential customers that the facility is subject to curtailment under certain conditions and that, therefore, it may not be suitable for serving critical loads.
f. Exempt large energy facilities from the curtailment requirements of paragraphs (b)(1)b. through e. of this section if such large energy use facilities construct or cause the construction of new generation, where such new generation:
1. Is located within Delaware or within PJM’s Delmarva Power and Light (“DPL”) transmission zone or within a transmission zone contiguous by land to the DPL transmission zone, with sufficient existing transmission infrastructure to deliver this additional electricity to Delaware;
2. Has not previously participated in the PJM base residual auction;
3. Matches the megawatt demand of the large energy use facility; and
4. Is determined by the State Energy Office to be consistent the achievement of this State’s greenhouse gas emissions reductions targets, as specified in § 10003 of Title 7, and this State’s renewable portfolio standards, as specified in § 354 of this title.
(2) The load shed protocol must require that all large energy use facilities comply with all of the following, as a condition of interconnection:
a. Install the necessary equipment or technology to differentiate critical and noncritical loads, such as the use of dedicated or segregable feeders or allow the large energy use facility to certify that it is not hosting critical loads. Examples of critical load include essential health and public safety facilities, such as hospitals, police, military, fire facilities, 911 facilities, wastewater treatment facilities; facilities providing electric service to the bulk electric system, including off-site power to generating stations, substation light and power; critical gas infrastructure used to supply gas pipeline pumping plants, processing, and production facilities; and telecommunication facilities.
b. Maintain physical and operational readiness measures that facilitate both targeted curtailment of non-critical loads and whole facility curtailment.
c. Maintain telemetry and communications capability sufficient for the Commission-regulated electric utility to execute and confirm curtailment actions during pre-emergency or emergency operations.
(3) Prior to curtailment, the Commission-regulated electric utility shall confer with the customer to the extent feasible to shed load in a coordinated manner.
(c) For purposes of receiving distribution and transmission service, the tariff shall require each large energy use facility to enter into an electric service agreement ( “ESA” ) that is reviewed and approved by the Commission under the provisions of § 203G of this title. The tariff shall further require, as a condition of receiving retail electric service in this State, that a large energy use facility is subject to a transmission rate on file with the Federal Energy Regulatory Commission that, as to transmission costs, meets the objectives of this section. Commission-regulated electric utilities may not submit a tariff for approval until the Commission finalizes the regulations to establish the terms of an ESA under § 203G of this title. No large energy use facility may receive service from a Commission-regulated electric utility until such tariff schedule has been reviewed and approved by the Commission. The ESA may not restrict the procurement of electric supply service from a certified electric supplier.
(d) All ESAs submitted to the Commission for review and approval in connection with this classification of service must contain all protective provisions required under § 203G of this title.
(e) The ESAs and any tariff required by this section shall collectively:
(1) Directly assign the costs of providing to a large energy use facility the electric services identified in paragraphs (e)(1)a. through (e)(1)e. of this section that are provided under a rate subject to the jurisdiction of the Commission and ensure that no such costs are borne by any other class of customer, including:
a. Directly assign all costs related to distribution infrastructure investments required to interconnect a large energy use facility incurred by the Commission-regulated electric utility directly to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.
b. Directly assign all costs of electric capacity procurement incurred by the Commission-regulated electric utility on a total system basis as a result of electric capacity procurement requirements imposed by PJM Interconnection due to large energy use facilities; any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.
c. Directly assign all increased costs for transmission infrastructure resulting from any large energy use facility to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.
d. Directly assign all costs related to interconnection, impact, engineering, and related studies undertaken by the Commission-regulated electric utility to initiate, modify, or provide service to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.
e. Allocate any financial or other obligation assigned to a Delaware Commission-regulated electric utility associated with PJM’s reliability backstop procurement of new capacity undertaken for large energy use facilities directly to the large energy use facility that gave rise to the financial or other obligation; any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.
(2) Require that each large energy use facility seeking new or modified service shall, as a condition of taking service from a Delaware Commission-regulated electric utility, provide appropriate financial security to the electric utility to ensure that the Commission-regulated electric utility’s existing customers are held harmless for any of the costs in paragraphs (e)(1)a. through (e)(1)e. of this section for the entire term of the ESA. Such financial security such as bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees, must remain in effect for the period necessary to ensure recovery of the full amount of such assigned investments.
(3) Require that the large energy use facility accept interruptible service for curtailment obligations assigned to the DPL zone by PJM, and establish a process that ensures that large energy users are curtailed in a manner prescribed by the Commission.
(4) Establish procedures for an incremental cost test ( “ICT” ) that will measure revenues from a large load customer and compare those to the incremental costs that serving that customer imposes on the system. Incremental costs to be studied shall include increases in capacity costs, locational marginal prices, transmission and distribution system infrastructure costs, including any differential in PJM network integration transmission service rates, and any other systems costs reasonably attributable to the large energy use facility. The ICT shall be performed by an independent consultant retained by the Commission on a 3-year cycle, or at such other time as the Commission determines is necessary to evaluate material changes in the customer’s load, operations, or system impacts, and the ESA will provide for adjustments to the service if the ICT reveals that the large load energy user is imposing costs upon other classes of service. Such independent consultant will perform an ICT to confirm that the revenues from a new large energy use facility are larger than the incremental costs associated with the customer. If the ICT shows that revenues are projected to be lower than incremental costs, then the Commission-regulated electric utility, in consultation with the large energy use facility, shall develop a proposal in the ESA to bring additional revenues such that incremental costs are paid for and a benefit is shown for system customers. ICT study costs incurred by the Commission-regulated electric utility, the Commission, including the independent consultant, and the Division of the Public Advocate must also be recovered through the ESA or other appropriate means. Such proposal may include, without limitation, a class- or customer-specific consumer protection and infrastructure fee designed to recover the incremental costs, infrastructure impacts, or cost shifts identified through the ICT. After recovery of costs incurred by the Commission-regulated electric utility, the Commission, and the Division of the Public Advocate, the Commission-regulated electric utility shall apply all such funds received as a direct bill credit to residential and small commercial customers to offset the impacts of large energy use facilities that cannot otherwise be addressed through a large load tariff. All costs related to ESA and ICT review shall be born by the class of large energy use facilities and may not be allocated to any other customer class.
(5) To the extent a large energy use facility procures electric supply service from a certified electric supplier, any costs allocated under this section that are associated with capacity, energy, or ancillary service obligations shall be structured in a manner compatible with the obligations of such supplier as the load-serving entity in regional wholesale markets, including PJM interconnection.
(f) In addition to an ESA, all large energy use facilities operating under the classification of service created by this section must as a condition of receiving retail electric service, have on file with the Federal Energy Regulatory Commission a transmission security agreement TSA that constains at least the following minimum terms:
(1) Financial security sufficient to ensure that the large load energy user can provide guarantees that its annual payments for transmission service will align with the annual payment that would be allocated to the large load energy user.
(2) Require bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees, to ensure protection of other customers in the event of bankruptcy, liquidation, or other circumstances that would prevent the large energy use facility from meeting its obligations under the TSA.
(3) A 15-year contract period for the security that commences after load ramp.
(4) A load ramp period limited to 10 years.
(5) A 5-year period of advance notice of termination.
(6) A demand floor set at 90% of contract capacity.
(g) Both ESAs and TSAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes in the financial condition of the large energy use facility or guarantor changes, or market conditions change, over the term of the contract. The Commission and the Commission-regulated electric utility have the authority to require updated information to reevaluate the customer and its collateral requirements, which may be adjusted accordingly.
(h) ESAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes based on Federal Energy Regulatory Commission Orders or PJM governing documents, tariffs, or manual changes that relate to the operation of large energy use facilities. Commission-regulated electric utilities, if directed by the Commission, must seek or support any necessary Federal Energy Regulatory Commission filing to amend the TSA to address changes in the ESA. Any such amendment is subject to Federal Energy Regulatory Commission acceptance or approval.
(i) The Commission may require large energy use facilities to participate in a registry for the purpose of tracking load forecasting, compliance with bring your own new capacity or curtailment requirements, whether administered by PJM, the Commission-regulated electric utility, or a regulatory body.
(j) The following requirements apply to all large energy use facilities and must be reflected in any applicable tariff, which values may be increased by the Commission, to be applicable to future large energy use facilities:
(1) Large energy use facilities shall contribute to the low-income charge established under § 1014(b) of this title at a rate of $0.000190 per kWh.
(2) Large energy use facilities shall contribute to the Green Energy Fund established under § 1014(a) of this title at a rate of $0.000712 per kWh.
(3) Large energy use facilities are “end-use customers” for purposes of § 354 of this title and are not entitled to the exemption under § 353(b) of this title.
(4) The tariff must include a proportional allocation of the nonbypassable charge for funds distributed to a qualified fuel cell provider under § 364(b) of this title.

Where this section sits in the code

Title 26. Public Utilities
Chapter 1. Public Service Commission
Subchapter III. Rates

(b) All Commission-regulated electric utilities shall develop a load shed protocol to allow large energy use facilities to be curtailed in anticipation of or during emergency conditions, including the installation of any necessary equipment or technology before a customer is interconnected. This subsection applies only to a load interconnected after December 31, 2026.

(1) The load shed protocol, to the extent feasible and consistent with reliability and safety, shall do all of the following:

a. Require the pre-emergency curtailment of large energy use facilities subject to directives from the PJM Interconnection, L.L.C. (“PJM”) to the Commission-regulated electric utility in accordance with applicable PJM requirements.

b. Require the curtailment of noncritical large energy use facilities prior to the curtailment of other non-critical loads during a pre-emergency or emergency reliability event.

c. Require the curtailment of critical large energy use facilities prior to the curtailment of other critical loads during an emergency reliability event.

d. Include clear performance expectations and consequences for noncompliance.

e. Require a large energy use facility to inform potential customers that the facility is subject to curtailment under certain conditions and that, therefore, it may not be suitable for serving critical loads.

f. Exempt large energy facilities from the curtailment requirements of paragraphs (b)(1)b. through e. of this section if such large energy use facilities construct or cause the construction of new generation, where such new generation:

1. Is located within Delaware or within PJM’s Delmarva Power and Light (“DPL”) transmission zone or within a transmission zone contiguous by land to the DPL transmission zone, with sufficient existing transmission infrastructure to deliver this additional electricity to Delaware;

2. Has not previously participated in the PJM base residual auction;

3. Matches the megawatt demand of the large energy use facility; and

4. Is determined by the State Energy Office to be consistent the achievement of this State’s greenhouse gas emissions reductions targets, as specified in § 10003 of Title 7, and this State’s renewable portfolio standards, as specified in § 354 of this title.

(2) The load shed protocol must require that all large energy use facilities comply with all of the following, as a condition of interconnection:

a. Install the necessary equipment or technology to differentiate critical and noncritical loads, such as the use of dedicated or segregable feeders or allow the large energy use facility to certify that it is not hosting critical loads. Examples of critical load include essential health and public safety facilities, such as hospitals, police, military, fire facilities, 911 facilities, wastewater treatment facilities; facilities providing electric service to the bulk electric system, including off-site power to generating stations, substation light and power; critical gas infrastructure used to supply gas pipeline pumping plants, processing, and production facilities; and telecommunication facilities.

b. Maintain physical and operational readiness measures that facilitate both targeted curtailment of non-critical loads and whole facility curtailment.

c. Maintain telemetry and communications capability sufficient for the Commission-regulated electric utility to execute and confirm curtailment actions during pre-emergency or emergency operations.

(3) Prior to curtailment, the Commission-regulated electric utility shall confer with the customer to the extent feasible to shed load in a coordinated manner.

(c) For purposes of receiving distribution and transmission service, the tariff shall require each large energy use facility to enter into an electric service agreement ( “ESA” ) that is reviewed and approved by the Commission under the provisions of § 203G of this title. The tariff shall further require, as a condition of receiving retail electric service in this State, that a large energy use facility is subject to a transmission rate on file with the Federal Energy Regulatory Commission that, as to transmission costs, meets the objectives of this section. Commission-regulated electric utilities may not submit a tariff for approval until the Commission finalizes the regulations to establish the terms of an ESA under § 203G of this title. No large energy use facility may receive service from a Commission-regulated electric utility until such tariff schedule has been reviewed and approved by the Commission. The ESA may not restrict the procurement of electric supply service from a certified electric supplier.

(d) All ESAs submitted to the Commission for review and approval in connection with this classification of service must contain all protective provisions required under § 203G of this title.

(e) The ESAs and any tariff required by this section shall collectively:

(1) Directly assign the costs of providing to a large energy use facility the electric services identified in paragraphs (e)(1)a. through (e)(1)e. of this section that are provided under a rate subject to the jurisdiction of the Commission and ensure that no such costs are borne by any other class of customer, including:

a. Directly assign all costs related to distribution infrastructure investments required to interconnect a large energy use facility incurred by the Commission-regulated electric utility directly to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

b. Directly assign all costs of electric capacity procurement incurred by the Commission-regulated electric utility on a total system basis as a result of electric capacity procurement requirements imposed by PJM Interconnection due to large energy use facilities; any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.

c. Directly assign all increased costs for transmission infrastructure resulting from any large energy use facility to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

d. Directly assign all costs related to interconnection, impact, engineering, and related studies undertaken by the Commission-regulated electric utility to initiate, modify, or provide service to the large energy use facility; any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

e. Allocate any financial or other obligation assigned to a Delaware Commission-regulated electric utility associated with PJM’s reliability backstop procurement of new capacity undertaken for large energy use facilities directly to the large energy use facility that gave rise to the financial or other obligation; any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.

(2) Require that each large energy use facility seeking new or modified service shall, as a condition of taking service from a Delaware Commission-regulated electric utility, provide appropriate financial security to the electric utility to ensure that the Commission-regulated electric utility’s existing customers are held harmless for any of the costs in paragraphs (e)(1)a. through (e)(1)e. of this section for the entire term of the ESA. Such financial security such as bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees, must remain in effect for the period necessary to ensure recovery of the full amount of such assigned investments.

(3) Require that the large energy use facility accept interruptible service for curtailment obligations assigned to the DPL zone by PJM, and establish a process that ensures that large energy users are curtailed in a manner prescribed by the Commission.

(4) Establish procedures for an incremental cost test ( “ICT” ) that will measure revenues from a large load customer and compare those to the incremental costs that serving that customer imposes on the system. Incremental costs to be studied shall include increases in capacity costs, locational marginal prices, transmission and distribution system infrastructure costs, including any differential in PJM network integration transmission service rates, and any other systems costs reasonably attributable to the large energy use facility. The ICT shall be performed by an independent consultant retained by the Commission on a 3-year cycle, or at such other time as the Commission determines is necessary to evaluate material changes in the customer’s load, operations, or system impacts, and the ESA will provide for adjustments to the service if the ICT reveals that the large load energy user is imposing costs upon other classes of service. Such independent consultant will perform an ICT to confirm that the revenues from a new large energy use facility are larger than the incremental costs associated with the customer. If the ICT shows that revenues are projected to be lower than incremental costs, then the Commission-regulated electric utility, in consultation with the large energy use facility, shall develop a proposal in the ESA to bring additional revenues such that incremental costs are paid for and a benefit is shown for system customers. ICT study costs incurred by the Commission-regulated electric utility, the Commission, including the independent consultant, and the Division of the Public Advocate must also be recovered through the ESA or other appropriate means. Such proposal may include, without limitation, a class- or customer-specific consumer protection and infrastructure fee designed to recover the incremental costs, infrastructure impacts, or cost shifts identified through the ICT. After recovery of costs incurred by the Commission-regulated electric utility, the Commission, and the Division of the Public Advocate, the Commission-regulated electric utility shall apply all such funds received as a direct bill credit to residential and small commercial customers to offset the impacts of large energy use facilities that cannot otherwise be addressed through a large load tariff. All costs related to ESA and ICT review shall be born by the class of large energy use facilities and may not be allocated to any other customer class.

(5) To the extent a large energy use facility procures electric supply service from a certified electric supplier, any costs allocated under this section that are associated with capacity, energy, or ancillary service obligations shall be structured in a manner compatible with the obligations of such supplier as the load-serving entity in regional wholesale markets, including PJM interconnection.

(f) In addition to an ESA, all large energy use facilities operating under the classification of service created by this section must as a condition of receiving retail electric service, have on file with the Federal Energy Regulatory Commission a transmission security agreement TSA that constains at least the following minimum terms:

(1) Financial security sufficient to ensure that the large load energy user can provide guarantees that its annual payments for transmission service will align with the annual payment that would be allocated to the large load energy user.

(2) Require bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees, to ensure protection of other customers in the event of bankruptcy, liquidation, or other circumstances that would prevent the large energy use facility from meeting its obligations under the TSA.

(3) A 15-year contract period for the security that commences after load ramp.

(4) A load ramp period limited to 10 years.

(5) A 5-year period of advance notice of termination.

(6) A demand floor set at 90% of contract capacity.

(g) Both ESAs and TSAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes in the financial condition of the large energy use facility or guarantor changes, or market conditions change, over the term of the contract. The Commission and the Commission-regulated electric utility have the authority to require updated information to reevaluate the customer and its collateral requirements, which may be adjusted accordingly.

(h) ESAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes based on Federal Energy Regulatory Commission Orders or PJM governing documents, tariffs, or manual changes that relate to the operation of large energy use facilities. Commission-regulated electric utilities, if directed by the Commission, must seek or support any necessary Federal Energy Regulatory Commission filing to amend the TSA to address changes in the ESA. Any such amendment is subject to Federal Energy Regulatory Commission acceptance or approval.

(i) The Commission may require large energy use facilities to participate in a registry for the purpose of tracking load forecasting, compliance with bring your own new capacity or curtailment requirements, whether administered by PJM, the Commission-regulated electric utility, or a regulatory body.

(j) The following requirements apply to all large energy use facilities and must be reflected in any applicable tariff, which values may be increased by the Commission, to be applicable to future large energy use facilities:

(1) Large energy use facilities shall contribute to the low-income charge established under § 1014(b) of this title at a rate of $0.000190 per kWh.

(2) Large energy use facilities shall contribute to the Green Energy Fund established under § 1014(a) of this title at a rate of $0.000712 per kWh.

(3) Large energy use facilities are “end-use customers” for purposes of § 354 of this title and are not entitled to the exemption under § 353(b) of this title.

(4) The tariff must include a proportional allocation of the nonbypassable charge for funds distributed to a qualified fuel cell provider under § 364(b) of this title.

Collected 2026-09-19T02:15:20Z. Source file · JSON

Browse this collection