2023 Delaware Code › Title 26 - Public Utilities › Chapter 1. PUBLIC SERVICE COMMISSION › Subchapter III. Rates › § 315. Electric and natural gas utility distribution system improvement charge [Effective June 14, 2025].

§ 315. Electric and natural gas utility distribution system improvement charge [Effective June 14, 2025].
(a) The following definitions shall apply in this section:
(1) “Eligible utility facility relocations” means new, used and useful utility plant or facilities of an electric or natural gas utility that:
a. Do not include that portion of any plant or facilities used to increase capacity of or connect to the transmission or distribution system to serve new or additional load;
b. Are in service; and
c. Were not included in the utility's rate base in its most recent general rate case; and which
d. Relocate, as required or necessitated by Department of Transportation or other government agency projects, without reimbursement existing facilities, including but not limited to, mains, lines and services, whether underground or aerial. For purposes of this subparagraph (1)d. of this section, “existing facilities” and “relocate” include the physical relocation of existing facilities and also include removal, abandonment or retirement of existing facilities and the construction of new facilities in a relocated location.
(2) “Pretax return” means the revenues necessary to:
a. Produce net operating income equal to the electric or natural gas utility's weighted cost of capital as established in the most recent general rate proceeding for that utility multiplied by the net original cost of eligible utility facility relocations. At any time the Commission by its own motion, or by motion of the electric or natural gas utility, Commission staff or the Public Advocate, may determine to revisit and, after hearing without the necessity of a general rate filing reset the UFRC rate to reflect the affected utility's current cost of capital. The UFRC rate shall be adjusted back to the date of the motion to reflect any change in the cost of capital determined by the Commission through this process;
b. Provide for the tax deductibility of the debt interest component of the cost of capital; and
c. Pay state and federal income taxes applicable to such income.
(3) “UFRC costs” means depreciation expenses and pretax return associated with eligible utility facility relocations.
(4) “UFRC rate” refers to utility facility relocation charge.
(5) “UFRC revenues” means revenues produced through a UFRC exclusive of revenues from all other rates and charges.
(b) Notwithstanding other sections of this subchapter, electric and natural gas utilities subject to the regulation of the Public Service Commission under this title may file with the Commission rate schedules establishing a UFRC rate that will allow for the automatic adjustment of the electric or natural gas utility's basic rates and charges to provide recovery of UFRC costs on an annual basis.
(c) Any electric or natural gas utility that files under subsection (b) of this section will be subject to the same statutory requirements of a public water utility seeking to implement or change a DSIC rate found under § 314(b)(1) et seq. of this title, except that such statutory requirements will apply to the UFRC rate and that the level of increase permitted under § 314(b)(7) of this title is limited to the portion of the customer's charge related to the delivery or distribution of natural gas or electricity.
(d) The UFRC rate shall not be available for application to the electric rates of Delmarva Power & Light Company or its successors until July 1, 2006, and shall also not be available for application to the electric rates of Delaware Electric Cooperative or its successors until July 1, 2005.
(e) This section applies only to regulated natural gas and electric utilities that file general rate cases with the Public Service Commission. With respect to a telecommunications service provider electing to be governed under subchapter VII-A of this chapter, upon application by such service provider, utility facility relocation costs not otherwise reimbursed under § 143 of Title 17 shall be considered by the Commission.
(f) The Commission may adopt rules and regulations, not inconsistent with this title, that the Commission finds reasonable or necessary to administer a UFRC.
(g) [Expired.]
75 Del. Laws, c. 170, §  2;  81 Del. Laws, c. 268, § 1;  82 Del. Laws, c. 11, § 8;  83 Del. Laws, c. 37, § 27;