State PBF/USF History, Legislation, Implementation
Last Updated: September 2014
Go to Summary
Rate Assistance and Energy Efficiency
Restructuring legislation signed March 1999, provides funding for low-income energy assistance and weatherization through a systems benefit charge (SBC) on Delmarva Power customers.
Beginning October 1, 1999, a SBC of $0.095 mills per kilowatt-hour is applied to all Delmarva Power customers. Proceeds from the charge are deposited each month by Delmarva into a low-income program to be used for low-income fuel assistance and weatherization programs within Delmarva’s service territory. The fund collects about $800,000 annually that are split evenly between LIHEAP and the Weatherization Assistance Program (WAP).
The Division of State Service Centers, the LIHEAP grantee, administers the low-income fuel funds as a program that is separate from LIHEAP, mostly for clients at or below 200 percent of federal poverty guidelines.
Starting in 2008, Delaware has participated in the Regional Greenhouse Gas Initiative (RGGI), a coalition working to limit carbon dioxide pollution through a cap and trade system. Participating states limit the amount of CO 2 that can be emitted by their power plants and auctions of CO 2 emissions allowances are conducted quarterly.
SB 263 requires that 15 percent of the CO 2 allowance proceeds are directed to low-income consumers — 10 percent goes to the WAP, and 5 percent is directed to LIHEAP.
Beginning April 2013, RGGI funds are providing benefits to income eligible households at 200 percent of poverty or below to help defray energy costs. These funds, about $400,000 per year, are administered through Family Support Services. In PY 2013, the Weatherization Assistance Program received $1 million in RGGI funds.