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Legislation Document
SPONSOR:
Rep. Burns
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE AMENDMENT NO. 1
TO
HOUSE SUBSTITUTE NO. 1
FOR
HOUSE BILL NO. 233
AMEND House Substitute No. 1 for House Bill No. 233 on line 90 by deleting "
Service
" as it appears therein and inserting in lieu thereof "
Security
".
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 92 by deleting "
A
" as it appears after "
(b)
" therein and inserting in lieu thereof "
As a condition of receiving retail electric service in the State, a
".
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 92 by deleting "
and a TSA
" as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 93 by deleting "
and TSA
" as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 94 by inserting "
As a further condition of receiving electric service in the State, there must be a transmission rate on file with the Federal Energy Regulatory Commission that, as to transmission costs, meets the objectives of subsection (c) of this section.
" after the period and before "
Notwithstanding
" therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 101 through 106 in their entirety and inserting in lieu thereof the following:
“
Commission shall promulgate regulations to govern tariffs subject to the review and approval of the Commission that are applicable to large energy use facilities, and to set forth the minimum protective features required to be included in an ESA and that must be included in the applicable transmission rate if a large energy use facility is entitled to take retail service in the State. The Commission regulations will identify specific form language to be incorporated into all ESAs, and such language shall ensure the protections set forth in § 317 of this title. At minimum, the ESA shall govern the terms and conditions under which the Commission-regulated electric utility will provide distribution service, interconnection, cost allocation, and risk mitigation associated with serving the large energy use facility. The ESA may not require the procurement of electric supply service from the Commission-regulated electric utility and nothing in the ESA may restrict a large energy use facility from procuring electric supply service from a certified electric supplier. The ESA must include all of the following provisions:
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 118 by inserting the following after the period therein: “
This paragraph does not apply to a large energy use facility that procures electric supply service from a certified electric supplier.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 119 through 121 in their entirety and inserting in lieu thereof the following:
“
(5) Specify that, for purposes of calculating its retail service charges and for allocating among the retail customers of the utility those transmission charges paid by the utility in accordance with federal law and tariffs on file with the Federal Energy Regulatory Commission, the large energy use facility’s annual capacity peak load contribution will be deemed to have been at least 90% of the contract capacity as adjusted by the applicable line loss factor and the large energy use facility’s annual network peak load contribution will be deemed to have been at least 90% of the contract capacity as adjusted by the applicable line loss factor.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 122 by deleting “
(which cannot exceed 5 years)
” as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 134 by deleting “
Commission.
” as it appears therein and inserting in lieu thereof “
Commission, Commission-regulated electric utility, or directed by the federal regional transmission system operator.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 135 by inserting “
or
” between “
bonding
” and “
letters
” as they appear therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on by deleting lines 148 through 156 and inserting in lieu thereof the following:
“
(4) The need for and impact of the project proposed by the large energy use facility on the safe, adequate, and reliable operation or delivery of electric supply services. It shall be considered a positive factor, but not required, in evaluating an ESA if a large energy use facility constructs or causes the construction of new generation, where such new generation: (i) is located within Delaware; (ii) may include newly constructed generation at an existing facility, uprates, or repowering of deactivated or retired generating units as of June 12, 2026; provided that capacity that previously participated in the PJM Base Residual Auction qualifies only to the extent attributable to such uprate or repowering; (iii) matches the megawatt demand of the large energy use facility; (iv) repurposes existing transmission interconnection infrastructure, land, or other generation-related assets associated with a prior in-state facility; and (v) is determined by the State Energy Office to be consistent with the achievement of the State’s greenhouse gas emissions reductions targets, as specified in § 10003 of Title 7, and the State’s renewable portfolio standards, as specified in § 354 of this title. It shall further be considered a positive factor in evaluating an ESA if a large energy use facility agrees to demand flexibility terms to assist with energy affordability, including demand flexibility during periods of dramatically increased wholesale electricity costs.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 165 by deleting “
the ESA
” and inserting in lieu thereof “
an ESA
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 168 by deleting “
a negotiated
” and inserting in lieu thereof “
an
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 183 by deleting “
federal or PJM programs
” and inserting in lieu thereof “
federal or PJM laws, rules, regulations, or tariffs
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by inserting the following after line 199 and before line 200:
“
(j) ESAs and TSAs must be interpreted and administered in a manner consistent with Chapter 10 of this title, including the State policy of retail competition and direct access. Nothing in this section, § 317 of this title, or any regulation promulgated hereunder shall be construed to do any of the following:
(1) Limit or impair the right of any retail electric customer, including a large energy use facility, to purchase electric supply service from a certified electric supplier.
(2) Require a large energy use facility to procure electric supply service from a Commission-regulated electric utility.
(3) Condition interconnection, distribution service, or transmission service upon the customer’s agreement to take electric supply service from a Commission-regulated electric utility.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 213 through 215 in their entirety and inserting in lieu thereof the following:
“
a. Require the pre-emergency curtailment of large energy use facilities subject to directives from PJM to the Commission-regulated electric utility in accordance with applicable PJM requirements.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 223 by deleting “
(b)(1)a.
” and inserting in lieu thereof “
(b)(1)b.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 226 by deleting “
load characteristics
” and inserting in lieu thereof: “
megawatt demand
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 233 by inserting “
military,
” after “
police,
” as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 243 through 249 in their entirety and inserting in lieu thereof the following:
“
(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 the 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 § 317 of this title. 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.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 253 through 255 in their entirety and inserting in lieu thereof the following:
“
(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:
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 at line 278 by inserting “
the electric utility to
” after “
financial security to
” as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 280 by inserting “
such as bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees,
” after “
Such financial security
” as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 at line 282 by deleting “
power for any curtailment
” and inserting in lieu thereof “
service for curtailment
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 at line 289 by deleting “
or cost shifts
” as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 293 by deleting “
Commission-regulated electric utilities
” as it appears therein and inserting in lieu thereof “
Such independent consultant
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 297 by deleting “
All costs
” as it appears therein and inserting in lieu thereof “
ICT study costs
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 on line 299 by inserting “
or other appropriate means
” after “
through the ESA
” and before the period as it appears therein.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 307 through 309 and inserting in lieu thereof the following:
“
(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 TSA that constains at least the following minimum terms:
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 at line 317 by deleting “
5 years
” and inserting in lieu thereof “
10 years
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 324 through 329 in their entirety and inserting in lieu thereof the following:
“
(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.
”.
FURTHER AMEND House Substitute No. 1 for House Bill No. 233 by deleting lines 343 through 345 in their entirety and inserting in lieu thereof the following:
“
(c) A Commission-regulated electric utility has no obligation to provide distribution service to a large energy use facility unless the facility has entered into an Electric Service Agreement approved by the Commission under § 203G of this title. Nothing in this subsection shall be construed to do either of the following:
(1) Require a large energy use facility to take electric supply service from the Commission-regulated electric utility.
(2) Limit the ability of a large energy use facility to take electric supply service from a certified electric supplier in accordance with Chapter 10 of this title.
”.
SYNOPSIS
This amendment makes changes to address Federal Energy Regulatory Commission jurisdictional authority regarding transmission rate design and policy and other technical and conforming edits.