Energy Efficiency Resource Standards (Delaware)

Last modified on February 12, 2015.

Rules Regulations Policies Program

Place	Delaware
Name	Energy Efficiency Resource Standards
Incentive Type	Energy Efficiency Resource Standard
Applicable Sector	Investor-Owned Utility, Municipal Utility, Rural Electric Cooperative, Natural Gas Distribution Utility
Eligible Technologies	Unspecified technologies
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Energy Efficiency Incentive Programs
Electric Peak Demand Reduction	Peak demand savings equivalent to 15% of 2007 peak electric demand by 2015
Electric Sales Reduction	Electricity savings equivalent to 15% of 2007 electricity consumption by 2015
Natural Gas Sales Reduction	Natural gas savings equivalent to 10% of 2007 natural gas consumption by 2015
Rate Impact Parameters	Average charge may not be more than $0.58/month per residential electric customer and $0.41/month per residential natural gas customer
Website	http://www.dnrec.delaware.gov/energy/information/otherinfo/Pages/EERSWorkgroup.aspx
Date added to DSIRE	2010-12-20
Last DSIRE Review	2012-10-16
References	DSIRE

Summary

In July 2009 the Delaware legislature enacted legislation creating energy savings targets for Delaware’s investor-owned, municipal, and cooperative electric utilities, as well the state’s natural gas distribution companies. These targets are hereafter referred to collectively as the Delaware Energy Efficiency Resource Standard or EERS. The law requires affected electric utilities to establish programs which save the equivalent of 15% of 2007 electricity consumption and peak electric demand by 2015. The standard also includes an interim reduction target of 2% of electricity consumption and peak demand by 2011. Affected natural gas utilities are required to save the equivalent of 10% of 2007 natural gas consumption by 2015, with an interim target of 1% by 2011.

Energy efficiency is defined to include energy savings resulting from measures or programs that target customer behavior; replace or improve the efficiency of equipment, processes, or devices; or result in reductions in transmission and distribution losses associated with the design and operation of the electric system. Combined heat and power systems and the use of “recycled energy” may also count as sources of energy savings.

The legislation required the Delaware Department of Natural Resources and Environmental Control (DNREC) to develop regulations implementing the standard by July 29, 2010 (one year after the enactment); however, as of this writing final regulations have not been promulgated. The EERS Workgroup created by the law has completed areport examining the feasibility and impact of the standard of the standard and providing implementation recommendations in June of 2011.

Utilities are permitted to determine the best way to achieve the energy savings targets and to develop and fund programs towards this end. Based on the recommendations of the EERS Workgroup, the DNREC may establish an energy efficiency charge to fund these programs on customer bills. Any charge must be levied on a per kilowatt-hour (kWh) or per therm basis and may not vary by customer class. In addition, the chosen rate may not result in an average charge greater than $0.58 per month per residential electric customer, or $0.41 per month per residential natural gas customer. Utilities collect and remit any energy efficiency charges to the Delaware Energy Office for deposit into the Sustainable Energy Trust Fund (SETF), with a separate account for each utility. The funds will be used to support activities in the following areas and proportions.

• 75% to further the goal and activities of the Sustainable Energy Utility (SEU), including energy conservation, energy efficiency, renewable energy and energy financing.
• 20% to fund the Weatherization Assistance Program
• 5% to the Delaware Energy Office to cover EERS program costs

Please see the EERS Workgroup web site for further information on how the standard will be implemented.

Incentive Contact

Contact Name	Cara Lampton
Department	Delaware Department of Natural Resources and Environmental Control
Division	Division of Energy and Climate
Address	1203 College Park Drive, Suite 101
Place	Dover, Delaware
Zip/Postal Code	19904
Phone	(302) 735-3480
Email	cara.lampton@state.de.us
Website	http://www.dnrec.delaware.gov/energy

Authorities (Please contact the if there are any file problems.)

Authority 1:	26 Del. C. § 1500 et seq.
Date Enacted	2009-07-29

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.