CHAPTER 243

FORMERLY

HOUSE BILL NO. 5

AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT WAIVING PROVISIONS OF THE DELAWARE CODE TO ALLOW THE STATE TO PROCURE ELECTRICITY ON THE RETAIL OR WHOLESALE MARKET.

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

Section 1. (a) The Director of the Office of Management and Budget is hereby authorized to undertake the necessary steps to procure electricity on the retail or wholesale market to include, but not be limited to:

1. Prequalify energy suppliers authorized by the Public Service Commission to sell electricity in Delaware according to criteria intended to ensure that the State purchases energy from suppliers who are financially secure, have a demonstrated history of supplying energy on the deregulated market and are able to accommodate the energy needs of the State.

2. Negotiate in advance of accepting a bid, the terms and conditions of contracts with prequalified electricity suppliers.

3. Aggregate energy usage and enter into agreement(s) on behalf of potential aggregation partners to include, but not be limited to school districts, higher education institutions, authorities of the State and local government units. A memorandum of understanding between the State and aggregation partners shall be developed committing those partners to a State bid contract for the purchase of electricity.

4. Sign a contract(s) with one (1)or more electricity suppliers committing the State and all committed aggregation partners to the purchase of electricity over a defined period.

By April 17, 2006, the Director of the Office of Management and Budget shall submit a detailed plan of action to procure electricity to the Controller General for approval. Said plan shall include in detail the steps necessary to prepare for and execute the procurement.

(b) The provisions of Title 29 of the Delaware Code are hereby waived for the purpose of procuring wholesale electricity as detailed in (a).

Approved April 04,2006