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DEMEC - Green Energy Fund

Municipal Utility
Savings Category 
Fuel Cells using Renewable Fuels
Solar Water Heat
Program Info
Program Type 
Public Benefits Fund
Delaware Department of Natural Resources and Environmental Control

'''''Note: The Green Energy Fund regulations are currently under revision to improve program function and meet the requirements of the Delaware Energy Act. The Delaware Division of Energy and Climate [ webpage] will provide details about relevant public meetings and workshops, proposed draft regulations, and other documents during the regulatory revision process.'''''

Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the compliance schedule if they contributed to the Green Energy Fund for investor-owned utilities or created their own green energy fund with an equal surcharge (i.e. $0.000178/kWh). In 2010 the Delaware RPS was amended by [ SS 1 for S.B. 119] and the section (26 Del. C. § 363) detailing the obligations of municipal utilities was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.

The Delaware Municipal Electric Corporation (DEMEC), a joint action agency and wholesale electric company representing the state's nine municipal utilities, opted out of the RPS requirements on behalf of the municipal utilities, and the utilities created their own funds. The surcharge for the investor-owned utility fund was doubled in 2007 through legislation, but the surcharge for the municipal utilities was not affected.

DEMEC municipal utility members include: Newark, New Castle, Middletown, Dover, Smyrna, Seaford, Lewes, Clayton and Milford. Each municipal utility has its own distinct fund. Customers of one utility cannot access another utility's fund revenues. As a result, some of the utilities' funds are very limited. Estimated annual income for each utility fund, based on 2008 retail sales data from the Energy Information Administration (EIA), is included below:

*City of Dover: $165,939
*City of Newark: $9,318
*City of Milford: $9,688
*City of Seaford: $33,881
*City of Lewes: $30,849
*Town of Middletown: $5,336
*City of New Castle: $31,817
*Town of Smyrna: $9,775
*Town of Clayton: $10,433

At the end of 2010 the DEMEC reported that the fund held approximately $307,036 between the nine municipal utilities. The DEMEC green energy funds support the municipal [ Green Energy Program Incentives], which include rebates for solar electric, solar heating, geothermal heat pumps, and wind power.