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Renewable Energy Portfolio Standards Act (REPSA)
Delaware’s Renewable Portfolio Standards (RPS) are established by the Renewable Energy Portfolio Standards Act (REPSA), which provides that utilities procure an increasing percentage of their electricity from renewable resources, leading up to 25 percent of energy derived from renewable sources by 2025.
REPSA requires that utilities procure 13 percent of their load from renewable resources (1 percent for solar) in Compliance Year (CY) 2015/16 (June 2015 to May 2016). RPS requirements are generally met by purchasing Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs). RECs and SRECs represent 1,000 kilowatt hours (kWh) or 1 megawatt hour (MWh) of renewable generation.
Delmarva Power’s most recent annual RPS compliance report for CY 2015/16 has been submitted to the Public Service Commission. DPL sold 7,849,706 MWh of electricity in CY 2015/16. REPSA provides that DPL’s largest customers (industrial customers with a peak demand in excess of 1,500 kilowatts) may exempt themselves from the requirement. To calculate DPL’s RPS requirement, the exempt load (773,573 MWh) is subtracted from the total load, resulting in 7,076,133 MWh. The RPS percentages are applied against the non-exempt load.
REPSA allows DPL to use Qualified Fuel Cell Provider generation (QFCP or Bloom Energy) to meet a portion of its RPS requirement. DPL used 239,275 MWh of Bloom Energy output to offset its REC requirement in CY 2015/16. After the QFCP offsets were applied, DPL purchased 371,140 RECs, all of which represent wind power. REC purchases represent 5.2 percent of the non-exempt load and 4.7 percent of the total load.
DPL purchased 70,752 SRECs, which were not offset by QFCP generation. No QFCP offsets were applied to the SREC requirement. The 70,762 SRECs required for compliance represent 1.0 percent of the non-exempt load and 0.9 percent of the total load.
Renewable Energy Certification through the Public Service Commission
Installed renewable energy systems must be certified by the Delaware Public Service Commission (PSC) in order to sell renewable energy credits. A certification application, applicable fees, and instructions for submission can be found on the Renewable Portfolio Standard and Green Power Products webpage under the heading "RPS Forms." Completed applications must be submitted to the PSC per the application instructions.
Once certified, you may set up an account with PJM-GATS System and input your monthly generation totals (kilowatt-hours). PJM-GATS (Generation Attribute Tracking System) tracks generation attributes and the ownership of the attributes as they are traded or used to meet government standards.
For market rates concerning the current value of renewable energy credits or questions concerning how to trade your credits, please contact your installation contractor and/or see links and resources on the Renewable Portfolio Standards and Green Power Products webpage. If you have any questions regarding the Renewable Portfolio Standards, please email Pamela Knotts or call 302-736-7500.
RPS Cost Cap Provision
The Renewable Energy Standards Portfolio Act (REPSA) includes a cost cap provision (26 Del. C. § 354(i) & (j)) that gives the Director of the Division of Energy & Climate the authority to freeze implementation of the Renewable Portfolio Standard (RPS) if the cost of compliance exceeds 3 percent of total retail costs of electricity for the entire RPS or 1 percent for solar photovoltaics (PV).
RPS Cost Cap Determination
Under the statute and the regulation, the Division calculates the cost of RPS compliance, as well as the measurable benefits, and reports to the Division Director. If the cost of compliance with the RPS exceeds the cost caps, the Director may freeze the RPS in consultation with the Public Service Commission.
The Director of the Division of Energy & Climate has issued a final determination to not freeze the RPS. The Director's determination, Division memos and public comments are posted below:
RPS Cost Cap Regulation
The RPS Cost Cap regulation was published in the January 2016 Register of Regulations and took effect on Jan. 11, 2016, available at: 104 Implementation of Renewable Energy Portfolio Standards Cost Cap Provisions.The RPS Cost Cap regulation was adopted after a lengthy rulemaking proceeding that included three public hearings and numerous comments. The comments and exhibits submitted for the public record in the rulemaking proceeding are available below.