CHAPTER 50

FORMERLY

SENATE BILL NO. 153

AN ACT TO AMEND SUBCHAPTER II, CHAPTER I, TITLE 26, DELAWARE CODE, RELATING TO THE PUBLIC SERVICE COMMISSION AND PUBLIC UTILITIES; AND PROVIDING FOR THE ESTABLISHMENT OF SERVICE TERRITORIES FOR REGULATED PUBLIC UTILITIES PROVIDING RETAIL ELECTRIC SERVICE SUBJECT TO THE JURISDICTION OF THE PUBLIC SERVICE COMMISSION.

WHEREAS, the General Assembly finds and declares that it is in the public interest to provide for the establishment of service territories within the State of Delaware for public utilities which provide retail electric service subject to the jurisdiction of the Public Service Commission so as to avoid duplication of facilities by such utilities; to preserve and enhance the State's physical environment; to minimize inconvenience, diminished efficiency and higher cost in serving retail customers; and that in the interest of public convenience and necessity, the State should be divided into territories within which such public utilities shall be obligated and allowed to provide service; and that the Delaware Public Service Commission be specifically empowered and directed to administer the division of such territories.

NOW, THEREFORE:

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

Section 1. Amend Subchapter II, Chapter I, Title 26, Delaware Code by redesignating §203 as §203A and inserting a new section as follows:

"§203B. Service Territories for Electric Utilities

(a) Subject to the provisions of §202, the Commission shall, upon notice and after hearing, establish boundaries throughout the State within which those public utilities providing retail electric service subject to Commission jurisdiction shall have the obligation and authority to provide retail electric service. All certificates of public convenience and necessity granted by the Commission shall be issued or amended to reflect such boundaries. Upon establishment, re—establishment or adjustment of any such boundaries the Commission shall cause to issue maps designating and certifying the territorial boundaries within which such public utilities shall be authorized and obligated to provide service.

(b) In acting under this section, the Commission shall consider among other

pertinent factors, which of two or more public utilities subject to its jurisdiction:

(1) had existing distribution facilities in nearest proximity to a designated area as of January 1, 1987;

(2) was the first to furnish retail service to, or in close proximity to, a designated area;

(1) can install and/or upgrade its facilities to furnish service to a designated area with the smaller amount of additional investment; and

(2) is demonstrably capable of providing adequate and reliable service to a designated area within a reasonable period of time and in a feasible manner.

(c) In acting under subsection 2038(b), the Commission shall give no consideration to the location or existence of transmission facilities.

(d) In establishing service territory boundaries under this section, the Commission shall provide that any customer which, as of the date such boundaries are set, was receiving retail electric service from a public utility other than the public utility within whose service territory such customer is located, shall continue to receive such service from the same public utility unless both public utilities agree that service shall be provided by the public utility to whom that service territory has been allocated; and further provided that the Commission may prohibit such a change whenever it determines, after notice and hearing, that such change will not be in the public interest.

(e) If the Commission, after notice and hearing, shall determine that service

being furnished or proposed to be furnished by a public utility subject to its jurisdiction to a customer or prospective customer within its service territory issubstantially inadequate and is not likely to be made adequate, or otherwise exceeds the capacity of that public utility to provide adequate service within a reasonable time, the Commission may authorize another public utility to provide service to such customer.

(f) After the establishment of retail electric service territories under this
section, two or more public utilities subject to Commission jurisdiction may from time to time hereafter apply to the Commission for adjustment of their adjoining retail electric service territories, and, if the Commission determines, after notice and hearing, that such adjustment is in the public interest, it shall approve such adjustment and, to the extent required cause revised maps to reflect such adjustment to be prepared.

(a) Except as otherwise provided herein, each retail electric supplier which is otherwise subject to the jurisdiction of the Commission shall have the exclusive right to furnish retail electric service to all electric—consuming facilities located within its certificated territory, and shall not furnish, make available, render, or extend its retail electric service to a consumer for use in electric—consuming facilities located within the certificated territory of another retail electric supplier; provided that any retail electric supplier may extend or construct its facilities in or through the certificated territory of another retail electric supplier, if such extension or construction is necessary for such supplier to connect any of its facilities or to serve its consumers within its own certificated territory.

(a) For purposes of this Section 2038:

(I) 'Distribution Facilities' shall mean any lines or facilities, equal to or

less than nominal 25 Kilovolts in Kent and Sussex Counties and aqua) to or less than nominal 34.5 Kilovolts in New Castle County, used primarily to divide and apportion electrical energy to and among retail electric consumers.

(2) 'Transmission Facilities' shall mean any lines or facilities, typically

but not necessarily exceeding 50 Kilovolts, used primarily for transferring large quantities of electrical energy at high voltages in bulk from one place to another but which do not divide or apportion it among retail electric consumers."

Section 2. Amend §201, Subchapter II, Chapter I, Title 26, Delaware Code, by inserting after the word "facilities" the following:

service territories".

Section 3. Amend §202(a), Subchapter II, Chapter I, Title 26. Delaware Code, by

inserting after the word "facilities" the following:

• service territories".

Approved June 19, 1987.