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Delaware General Assembly· SB 321Signed

Net Crediting/Utility Billing, the official text

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SPONSOR: Sen. Hansen & Rep. Heffernan & Rep. Burns
                                                                             Sen. Pinkney; Reps. Berry, Carson, Lambert, Phillips,
                                                                             Snyder-Hall

                                                 DELAWARE STATE SENATE
                                                 153rd GENERAL ASSEMBLY

                                                 SENATE BILL NO. 321

    AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATED TO UTILITY BILLING.

1         WHEREAS, Community Energy Facilities (CEFs) expand access to renewable energy for all customers, including

2 renters and low- to moderate-income (LMI) households; and

3         WHEREAS, Utility Consolidated Billing (UCB) with net crediting has been successfully implemented in

4 neighboring states such as Maryland and New Jersey, improving billing transparency, reducing administrative burdens, and

5 expanding participation in community energy; and

6         WHEREAS, it is in the public interest to authorize consolidated billing in Delaware for community energy

7 subscriptions, to reduce billing confusion, and to ensure the financial stability of subscriber coordinators.

8         NOW, THEREFORE:

9         BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

10        Section 1. Amend Chapter 10, Title 26 of the Delaware Code by making deletions as shown by strike through and

11 insertions as shown by underline as follows:

12        § 1014. Public purpose programs and consumer education [For application of this section, see 85 Del. Laws, c. 83,

13 § 2].

14        (f) Individual customers may aggregate their individual meters in conjunction with a community-owned energy

15 generating facility provided that:

16                  (14) Every 3 years, the community-owned energy generating facility must certify to the Public Service

17        Commission in writing that it meets the low low- to moderate- income eligibility criteria provided in this chapter,

18        provided that Community-owned energy generating facilities with a Final Certificate to Operate issued by the

19        Commission on or before September 1, 2026 may elect to only include low income customers as set forth in §

20        1014 (16)e.

21                  (16) Before a community-owned energy generating facility receives permission to operate pursuant to the

22        interconnection process from the electric distribution company, a community-owned energy generating facility

23        shall provide the electric distribution company with the following information:

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24                  e. Before a community-owned energy generating facility with a Final Certificate to Operate

25                  issued by the Commission on or before September 1, 2026, receives permission to interconnect with an

26                  electric distribution company, the community-owned energy generating facility must certify to the

27                  electric distribution company and the Commission that participants in the community-owned energy

28                  generating facility include at least 15% low income customers whose gross annual income, by family

29                  size, is at or below 200% of the federal poverty guidelines, or 60% of the state median household income

30                  published by the United States Census Bureau, whichever is greater.

31                  f. Before a community-owned energy generating facility with a Final Certificate to Operate

32                  issued by the Commission on or after September 2, 2026, receives permission to interconnect with an

33                  electric distribution company, the community-owned energy generating facility must certify to the

34                  electric distribution company and the Commission that at least 15% of its kilowatt–hour output is served

35                  to low- to moderate- income customers whose gross annual income, by family size, is at or below 350%

36                  of the federal poverty guidelines, or 80% of the state median household income published by the United

37                  States Census Bureau, whichever is greater. Provided however, that community-owned energy generating

38                  facilities with a Final Certificate to Operate issued by the Commission on or before September 1, 2026,

39                  may elect to certify under the provisions of this section.

40  §1014A. Consolidated Billing.

41  (a) Definitions. For purposes of this section:

42                  (1) “Consolidated billing” means a mechanism that requires an electric utility under the regulation of the

43  Delaware Public Service Commission to, at the request of a Subscription Coordinator:

44                  a. Include the monthly subscription charge of a community energy facility on the subscriber’s

45                  utility bill.

46                  b. Remit payment received for those charges to the Subscription Coordinator.

47                  (2) “Net crediting” means a process in which the Commission-regulated electric public utility subtracts

48  the community energy subscription charge from the monthly community energy credit, applies the savings value

49  to the customer’s bill, and remits the subscription charge directly to the subscription coordinator.

50                  (3) "Subscriber" means a retail customer of a Commission-regulated electric public utility that holds a

51  subscription to a community energy facility.

52                  (4) "Subscription Coordinator" means:

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53                  a. A person that has a contractual arrangement with a community energy facility, whether having

54                  received a final certificate to operate or not, to provide services such as:

55                  1. Market community energy facility projects or otherwise provide community energy

56                  facility services under its own brand name.

57                  2. Perform any administrative actions to connect or enroll customers with community

58                  energy facility projects or allocate subscriptions. This does not include vendors or subcontractors

59                  handling only back-office functions such as electronic data interchange between the community

60                  energy facility, subscription coordinator, and the utility company.

61                  3. Manage interactions between a community energy facility and an electric distribution

62                  company related to subscribers. This does not include vendors or subcontractors handling only

63                  back-office functions such as electronic data interchange between the community energy facility,

64                  subscription coordinator, and the utility company.

65  (b) Consolidated billing authorization.

66                  (1) Commission-regulated electric public utilities must offer consolidated billing for all residential and

67  small-to-mid-sized commercial subscribers.

68                  (2) Consolidated billing shall be the default billing method for all community energy facilities with a

69  Final Certificate to Operate issued by the Commission on or after September 2, 2026, unless a subscriber elects

70  otherwise. Any Community-owned energy generating facility participating in consolidated billing under this

71  section must comply with § 1014 (f)(16)f and § 1014A (c)(2). However, a Community-owned energy generating

72  facilities with a Final Certificate to Operate issued by the Commission on or before September 1, 2026, may elect

73  to not participate in consolidated billing if the facility operator submits a formal request in writing to the

74  Commission-regulated electric public utility by no later than September 1, 2027, subscribers should contact their

75  subscription coordinator to unenroll from utility consolidated billing, not the Commission-regulated electric public

76  utility. Enrollment transactions are the responsibility of the Subscription Coordinator. Subscription Coordinators

77  can utilize a 0% savings rate in the community energy portal to opt individual subscribers out of utility

78  consolidated billing, which would allow them to continue invoicing those customers separately.

79                  (3) The community energy facility is solely responsible for managing their customer subscriptions.

80                  (4) Subscription Coordinators may not impose subscription fees, early termination penalties, or charges

81  unrelated to commodity service through consolidated billing.

82  (c) Consumer protections - credit.

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83                   (1) No subscription coordinator may require residential subscribers to undergo a credit check or pay

84   upfront enrollment fees.

85                   (2) For projects with a Final Certificate to Operate issued by the Commission on or after September 2,

86   2026, the savings rate for residential customers shall be at least 10%, the savings rate for any income qualified

87   subscriber as defined by § 1014 paragraph (f)(16)f. of this title shall be at least 20%, even when accounting for any

88   subscription or other fees charged by the subscribing organization or Community-owned energy generating

89   facility.

90                   (3) For projects with a Final Certificate to Operate issued by the Commission on or before September 1,

91   2026, the subscription value for residential customers must provide for a net discount when applying the monetary

92   value of the bill credit on a bill issued by the electric company to the subscriber for electric service, even when

93   accounting for any subscription or other fees charged by the subscribing organization or Community-owned

94   energy generating facility.

95                   (4) Community energy facility owners are solely responsible for managing their customer subscriptions

96   through the utility's community energy portal.

97   (d) Utility obligations.

98                   (1) Commission-regulated electric public utilities shall:

99                          a. Apply community energy credits and subscription charges on a single consolidated bill.

100                         b. Provide timely electronic remittance of collected subscription charges to subscription

101                  coordinators.

102                         c. Payments to subscription coordinators (aggregate subscription charges credit less fees

103                  assessed pursuant to §1014A(c)(2) and (3)) would be received by within 60 business days of their billing

104                  date.

105                  (2) Utilities may recover reasonable administrative and information technology costs of consolidated

106  billing through a tariffed fee approved by the Delaware Public Service Commission. Any such fee may not exceed

107  1% of the value of subscriber bill credits unless the Commission finds a higher fee just and reasonable.

108                  (3) Utilities may assess a fee not to exceed 0.25%, in addition to the Commission-approved

109  administrative fee, to hold accounts in escrow to cover instances of customer arrearage. Unused funds shall be

110  refunded to subscription coordinators on an annual basis.

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111                  (4) Every 2 years, the Commission, in conjunction with the regulated utility, must perform a review of the

112  fees outlined in this section and provide recommendations to the legislature, as needed, to ensure adequate

113  recovery of costs associated with the implementation of consolidated billing outlined herein.

114  (e) Implementation.

115                  (1) On or before April 1, 2027, the Delaware Public Service Commission shall adopt regulations

116  establishing protocols for consolidated billing, including:

117                  a. Data exchange standards for electric companies and subscriber organizations, and any

118                  approved subscription coordinators.

119                  b. Require all electric companies to report billing and crediting errors to the Commission on a

120                  regular schedule.

121                  c. Impose requirements for monthly application of bill credits to subscriber bills and application

122                  of rollover credits.

123                  d. Require all electric companies to show applied and banked credits on each bill rendered to a

124                  subscriber.

125                  e. Implement any additional changes the Commission determines will improve billing and

126                  crediting processes for subscribers.

127                  (2) The Commission shall convene a stakeholder working group, including Delmarva Power and Light,

128  Subscription Coordinators, the Division of the Public Advocate, representatives from the community solar industry

129  with operations in Delaware, representatives from the residential and commercial solar industry with operations in

130  Delaware, environmental interests, and low-income representatives, to provide recommendations to the

131  Commission to improve the enrollment and operation of the community energy facility program outlined in this

132  title. The Commission must deliver a final report detailing the results and recommendations of the stakeholder

133  working group to the General Assembly no later than January 31, 2027. The report must include recommendations

134  on:

135                  a. The consolidated billing framework, though the working group shall prioritize aligning

136                  implementation with existing consolidated billing frameworks in other common markets.

137                  b. Recommended changes to the Community Energy Facilities program to improve low- to

138                  moderate- income customer enrollment, including how to expand elevated discount rates to cover

139                  moderate income families, adjusting how an expanded low- to moderate- income customer requirement

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140                  shall be applied, and recommending alternative methods of satisfying an expanded minimum for low- to

141                  moderate- income customer enrollment, and alternative methods of enrolling customers.

142                  c. Methods of strengthening consumer protections relating to participation in the Community

143                  Energy Facilities program.

144                  d. Any other topic the Commission or stakeholder working group deems necessary to achieve

145                  the outcomes of the Community Energy Facilities program as outlined in this title.

146                  (3) Consolidated billing shall be available to all community energy facilities no later than October 1,

147  2027.

148  Section 2. This Act shall take effect upon its enactment, except that subsection (d) of § 1014A of Title 26 of the

149 Delaware Code shall govern implementation timelines.

                                                                         SYNOPSIS

               Net crediting is the preferred utility consolidated billing methodology for Delmarva Power and Light as it has
     already been successfully implemented in Atlantic City Electric, Pepco Maryland, and Delmarva Maryland jurisdictions.
     Net crediting delivers a simpler, more transparent experience for both subscribers and subscription coordinators by netting
     subscription charges from monthly credits on behalf of the subscribers, who receive the net credit. Then, the utility
     aggregates those subscription charges on behalf of the subscription coordinators, who receive a payment from Delmarva.
     Net crediting marries the concept of world class customer experience with market scalability, while also being the lowest
     risk option for Delmarva's customers.

                                                                                                                              Author: Senator Hansen

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Every fact on this page links to its source, starting with the official bill record.