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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsAugust 2015

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26 DE Admin. Code 3007
AND NOW, this 16th day of June, 2015, the Delaware Public Service Commission ("Commission") determines and orders the following:
WHEREAS, by Order No. 8785 (February 7, 2013), the Commission approved proposed revisions to the "Electric Service Reliability and Quality Standards" as set forth in 26 DE Admin. Code §3007 (the "Rules") for electric distribution companies subject to the Commission's jurisdiction; and
WHEREAS, in that Order, Section 3007-1.9 of the Rules was deleted in order to extend the Rules beyond 2012; and
WHEREAS, Executive Order Number Thirty-Six provides that state agencies should review its regulations at least every three years to tackle outdated, ineffective and redundant regulations; and
WHEREAS, in PSC Docket No. 14-193, the Commission recently approved an Amended Settlement Agreement that requires certain changes to the current reliability standards and processes as set forth in the Rules; and
WHEREAS, the Commission now proposes to reopen the docket to review the Rules and to receive input from the public on proposed changes;
1. For the reasons set forth in the body of this Order, and pursuant to 26 Del.C. §§201, 1002, 1008, and 1010 and 29 Del.C. §10115, the Commission proposes to review the Rules as set forth in 26 DE Admin. Code §3007. A copy of the proposed revised rules is attached as Exhibit "A". A copy of the currently-existing rules is attached as Exhibit "B" to this Order.
2. Pursuant to 29 Del.C. §§1133 and 10115(a), the Secretary of the Commission ("Secretary") shall transmit to the Registrar of Regulations for publication in the Delaware Register of Regulations a copy of this Order, and a copy of the revised Rules now being proposed for adoption (Exhibit "A"), and a copy of the current Rules (Exhibit "B").
3. In addition, the Secretary shall transmit to the Registrar of Regulations for publication in the Delaware Register of Regulations the "Notice of Proposed Rule-Making" attached to this Order as Exhibit "C". The Secretary shall also cause the "Notice of Proposed Rule-Making" to be published in The News Journal and the Delaware State News newspapers on June 22, 2015. The Secretary shall include proof of such publication in the docket file before any public hearing in this matter. Further, the Secretary shall serve (by regular mail or, as permitted under 26 DE Admin. Code §1001, by other methods such as electronic e-mail) a copy of such Notice on: (a) the Public Advocate; (b) the Delaware Energy Office; (c) Delmarva Power & Light Company; (d) all certificated electric suppliers; and (e) each person or entity that has made a timely request for advance notice of regulation-making proceedings.
4. Pursuant to 29 Del.C. §§10115(a)(2) and 10116, the Commission encourages the public to submit written comments on or before September 2, 2015, but the last date to submit written comments will be limited as set forth in 29 Del.C. §10118(a).
You may review PSC Order No. 8750 and the proposed revised Rules in the August 2015 issue of the Delaware Register of Regulations or on the PSC's Internet website located at
EFFECTIVE DATE: September 10, 2006 January 11, 2016
1.1 Reliable electric service is of great importance to the Delaware Public Service Commission ("Commission"), because it is an essential service to the citizens of Delaware. This regulation, in support of 26 Del.C., §1002, sets forth reliability standards and reporting requirements needed to assure the continued reliability and quality of electric service being delivered to Delaware customers and is applicable to all Delaware Electric Distribution Companies ("EDCs") and Delaware Generation Companies.
1.2 Nothing in this regulation relieves any utility or generation company from compliance with any requirement set forth under any other regulation, statute or order. This regulation is in addition to those required under PSC Docket No. 58, Order No. 103, Regulations Governing Service Supplied by Electrical Utilities.
1.5 Each generation company operating in the state is required to provide the Commission with an annual assessment of their electric supply reliability as specified in Section 10.
1.65 This regulation requires the maintenance and retention of reliability data and the reporting of reliability objectives, planned actions and projects, programs, load studies and actual resulting performance on an annual basis, including major events as specified in section 11.
1.76 EDCs are responsible for maintaining the reliability of electric service to all their customers in the state of Delaware. Pursuant to this requirement, EDCs may be subject to penalties as described in Section 13 or 26 Del.C., §1019.
1.87 EDCs are required to explore the use of proven state of the art technology, to provide cost effective electric service reliability improvements.
Acceptable reliability level is defined as the maximum acceptable limit of the System Average Interruption Frequency Index (“SAIFI”), the Customer Average Interruption Duration Index (“CAIDI”) and the Forced Outage Rate as specified in Section D.
ALM means Active Load Management in accordance with Article 1, Schedule 5.2 of PJM’s Reliability Assurance Agreement (RAA).
Availability means the measure of time a generating unit, transmission line, or other facility is capable of providing service, whether or not it actually is in service.
Beginning restoration includes the essential or required analysis of an interruption, the dispatching of an individual or crew to an affected area, and their arrival at the work site to begin the restoration process (normally inclusive of dispatch and response times).
Benchmark means the standard service measure of SAIFI, CAIDI and Forced Outage Rate as set forth in these regulations.
Capacity means the rated continuous load-carrying ability, expressed in megawatts (“MW”) or megavolt-amperes (“MVA”) of generation, transmission, or other electrical equipment.
Capacity Emergency Transfer Objective (‘CETO’) means the amount of megawatt capacity that an area or sub area must be able to import during localized capacity emergency conditions such that the probability of loss of load due to insufficient tie capability is not greater than one day in 10 years.
Capacity Emergency Transfer Limit (‘CETL’) means the amount of megawatts that can actually be imported into the area or sub area during localized capacity emergency conditions.
Constrained hours of operation means the hours of electric system operation during which time there are limits, transfer constraints or contingencies on the delivery system that require off-cost dispatch of generating facilities located within the PJM DPL Zone. In measuring compliance to standard, total constrained hours will exclude “major events” and forced generator outages.
Contingency means the unexpected failure or outage of a system component, such as a generator, transmission line, circuit breaker, switch, or other electrical element. A contingency may also include multiple components, which are related by situations leading to simultaneous component outages.
Corrective action means the maintenance, repair, or replacement of an EDC’s utility system components and structures to allow them to function at an acceptable level of reliability.
Corrective maintenance means the unplanned maintenance work required to restore delivery facilities to a normal operating condition that allows them to function at an acceptable level of reliability.
Customer Average Interruption Duration Index (‘CAIDI’) represents the average time in minutes required to restore service to those customers that experienced sustained interruptions during the reporting period. CAIDI is defined as follows:
Customers Experiencing Long Interruption Durations8 ('CELID8') represents the total number of customers that have experienced a cumulative total of more than eight hours of outages.
Customers Experiencing Multiple Interruptions8 ('CEMI8') is an index that represents the total number of customers that have experienced nine or more interruptions in a single year reporting period.
CEMI8 = Total number of customers that experienced more than eight (8) sustained interruptions
Delivery Facilities means the EDC’s physical plant used to provide electric energy to Delaware retail customers, normally inclusive of distribution and transmission facilities.
Dispatch time is the elapsed time between receipt of a customer call and the dispatch of a service resource to address the customer’s issue as tracked by the OMS.
Distribution feeder” or “feeder means a three-phase set of conductors emanating from a substation circuit breaker serving customers in a defined local distribution area. This includes three-phase, two-phase and single-phase branches that are normally isolated at all endpoints.
"Distribution facilities" means electric facilities located in Delaware that are owned by a public utility that operates at voltages of 34,500 volts or below and that are used to deliver electricity to customers, up through and including the point of physical connection with electric facilities owned by the customer.
Electric Distribution Company” or “EDC means a public utility owning and/or operating transmission and/or distribution facilities in this state.
Electric distribution system means that portion of an electric system, that delivers electric energy from transformation points on the transmission system to points of connection at the customers’ premises.
Electric service means the supply, transmission, and distribution of electric energy as provided by an electric distribution company.
Electric Supplier means a person or entity certified by the Commission that sells electricity to retail electric customers utilizing the transmission and/or distribution facilities of a nonaffiliated electric utility, as further specified in 26 Del.C., §1001.
Forced outage means the removal from service availability of a generating unit, transmission line, or other facility for emergency reasons or a condition in which the equipment is unavailable due to unanticipated failure. (See North American Electric Reliability Council - “Glossary of Terms” August 1996.)
Forced outage rate means the hours a generating unit, transmission line, or other facility is removed from service, divided by the sum of the hours it is removed from service plus the total number of hours the facility was connected to the electricity system expressed as a percent. (See North American Electric Reliability Council - “Glossary of Terms” August 1996.)
Generation company means a private or publicly owned company that owns or leases, with right of ownership, plant, equipment and facilities in the state of Delaware, rated in excess of 25 MVA and capable of supplying electric energy to the transmission and/or distribution system.
Generation Working Group means a forum within which Generation companies can voluntarily provide to the Commission information related to the operation of their Generating Plants that would otherwise be required pursuant to these Regulations
Interruption means the loss of electric service to one or more customers. It is the result of one or more component outages, depending on system configuration or other events. See “outage” and “major event.” The types of interruption include momentary event, sustained and scheduled.
Interruption, duration means the period (measured in minutes) from the initiation of an interruption of electric service to a customer until such service has been restored to that customer. An interruption may require step restoration tracking to provide reliable index calculations.
Interruption, momentary event means an interruption of electric service to one or more customers, of which the duration is less than or equal to 5 minutes. This definition includes all reclosing operations, which occur within five minutes of the first interruption. For example, if a recloser or breaker operates two, three, or four times and then holds within five minutes, the event shall be considered one momentary event interruption.
Interruption, scheduled means an interruption of electric service that results when one or more components are deliberately taken out of service at a selected time, usually for the purposes of preventative maintenance, repair or construction. Scheduled interruptions, where attempts have been made to notify customers in advance, shall not be included in the SAIFI, CAIDI, or Forced Outage Rate calculations.
Interruption, sustained means an interruption of electric service to one or more customers that is not classified as a momentary event interruption and which is longer than five minutes in duration.
Interrupting device means a device, capable of being reclosed, whose purpose includes interrupting fault currents, isolating faulted components, disconnecting loads and restoring service. These devices can be manual, automatic, or motor operated. Examples include transmission and distribution breakers, line reclosers, motor operated switches, fuses or other devices.
Major Event means an event consistent with the I.E.E.E.1366, Guide For Electric Power Distribution Reliability Indices standard as approved and as may change over time. For purposes of this regulation, changes shall be considered to be in effect beginning January 1 of the first calendar year after the changed standard is adopted by the I.E.E.E. Major event interruptions shall be excluded from the EDC’s SAIFI, CAIDI and Forced Outage Rate calculations for comparison to reliability benchmarks. Interruption data for major events shall be collected, and reported according to the reporting requirements outlined in Section 11.
Mid Atlantic Area Council (‘MAAC’) or Reliability First Corporation means a regional council of the North American Electric Reliability Council (“NERC”), or successor organization, that is responsible for Mid Atlantic operational policies and reliability planning standards applicable to PJM and local electric distribution company members.
North American Electric Reliability Council (‘NERC’) means the national organization responsible for operational policies and reliability planning standards applicable to national system operations and electric distribution companies, or their successor organizations.
Outage means the state of a component when it is not available to perform its intended function due to some event directly associated with that component. An outage may or may not cause an interruption of electric service to customers, depending on system configuration.
Outage management system (‘OMS’) means a software operating system that provides database information to effectively manage service interruptions and minimize customer outage times.
Pre-restructuring refers to the five-year time frame prior to Delaware’s adoption of 26 Del.C., Chapter 10, Electric Utility Restructuring Statute.
PJM Interconnection, L.L.C. (‘PJM’) means the independent system operator that is responsible for mid-Atlantic region wholesale energy markets and the interstate transmission of energy, or it’s its successor organization.
Power quality means the characteristics of electric power received by the customer, with the exception of sustained interruptions and momentary event interruptions. Characteristics of electric power that detract from its quality include waveform irregularities and voltage variations – either prolonged or transient. Power quality problems shall include, but are not limited to, disturbances such as high or low voltage, voltage spikes or transients, flicker and voltage sags, surges and short-time overvoltages, as well as harmonics and noise.
Preventive maintenance means the planned maintenance, usually performed to preclude forced or unplanned outages, and which allows delivery facilities to continue functioning at an acceptable level of reliability.
Reliability means the degree of performance of the elements of the bulk electric system that results in electricity being delivered to customers within accepted standards and in the amount desired. Reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply. Electric system reliability can be addressed by considering two basic and functional aspects of the electric system – Adequacy and Security. (See ERC definition - NERC’s Reliability Assessment 2001-2010, dated October 16, 2001.)
Adequacy - The ability of the electric system to supply the aggregate electrical demand and energy requirements of customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements.
Security - The ability of the electric system to withstand sudden disturbances such as electric short circuits or unanticipated loss of system elements. (See NERC definition - NERC’s Reliability Assessment 2001–2010, dated October 16, 2001.)
Repair time is the elapsed time from the arrival of the service resource at the identified problem site to the correction of the customer’s original concern as tracked by the OMS.
Response time is the elapsed time from dispatch of service resource to the arrival of the service resource at the identified problem site as tracked by the OMS.
Step restoration means the restoration of service to blocks of customers in an area until the entire area or circuit is restored.
Sum of all Sustained Customer Interruption Durations means the summation of the restoration time (in minutes) for each event times the number of interrupted customers for each step restoration of each interruption event during the reporting period.
Supervisory Control And Data Acquisition ('SCADA') is an electronic communication and control system that provides electrical system operating information and mechanisms to remotely control energy flows and equipment.
System Average Interruption Duration Index ('SAIDI') represents the average duration of sustained interruptions per customer. SAIDI is defined as:
System Average Interruption Frequency Index (‘SAIFI’) represents the average frequency of sustained interruptions per customer during the reporting period. SAIFI is defined as:
Total Number of Sustained Customer Interruptions means the sum of the number of interrupted customers for each interruption event during the reporting period. Customers who experienced multiple interruptions during the reporting period are counted for each interruption event the customer experienced during the reporting period.
Total Number of Customers Served means the number of customers provided with electric service by the distribution facility for which a reliability index is being calculated on the last day of the time period for which the reliability index is being calculated. This number should exclude all street lighting (dusk-to-dawn lighting, municipal street lighting, traffic lights) and sales to other electric utilities.
Transmission facilities means electric facilities located in Delaware and owned by a public utility that operates at voltages above 34,500 volts and that are used to transmit and deliver electricity to customers (including any customers taking electric service under interruptible rate schedules as of December 31, 1998) up through and including the point of physical connection with electric facilities owned by the customer.
3.76 Each EDC shall ensure that distribution system generation interconnection requirements are consistent with the I.E.E.E. 1547 series, "Standard for Interconnecting Distributed Resources with Electric Power Systems, as currently approved and as may be revised.
3.87 Each EDC shall file and maintain with the Commission a copy of the technical requirements for distribution system generation interconnection.
4.1 The measurement of reliability and quality performance shall be based on annual SAIDI and Constrained Hours of Operation measures for each EDC calculated annually for each EDC based on SAIDI for the most recent three (3) year period and the Constrained Hours of Operation for the most recent one (1) year period. The SAIDI calculation shall include all Delaware customer outages, excluding major events, and shall be reported along with its SAIFI and CAIDI components, subdivided by its distribution, substation and transmission components. The Constrained Hours of Operations shall be based on peninsula (DPL Zone) transmission system contingency limitations that require the dispatch of off-cost generation, excluding generation or transmission forced outages, generation or transmission related construction or any unrelated third party actions.
4.2 Each EDC shall maintain their electric service reliability and quality performance measures within the benchmark standard of this Section 4, Paragraph 4.3. SAIDI and Constrained Hours of Operation performance shall be measured each calendar year. Annual A three (3) year average SAIDI and an annual Hours of Constrained Operation performance equal to or better than the acceptable reliability level meets the standard of this regulation. When performance does not meet the acceptable reliability level, further review and analysis are required. The EDC may be subject to penalties as defined in Section 13 and subsequent corrective actions may be required.
4.3 For the EDCs each EDC, the electric service reliability and quality performance benchmarks are established as follows:
4.3.1 The system SAIDI benchmark standard, which is based on pre-restructuring levels of performance and adjusted to reflect a 1.75 standard deviation of data variability and the transition to an OMS system shall be as follows: for the three (3) year period shall be 180 minutes per customer.
4.3.2 Based on the PEPCO/Conectiv merger settlement, the The Constrained Hours of Operation benchmark standard for the one (1) year period shall be 600 hours for each EDC.
9.21 By March 31 of each year, each EDC shall submit a reliability planning and studies report to the Commission for review. The report will identify current reliability objectives, load study results and planned actions, projects or programs designed to maintain the electric service reliability and quality of the delivery facilities.
9.32 The report shall include the following information:
9.32.1 Objective targets or goals in support of reliable electric service and descriptions of planned actions to achieve the objectives;
9.32.2 Delivery load study results as described in Section 8, to include at a minimum the information for both year b and year c as specified in Section 8, Paragraph 8.3;
9.32.3 Description and estimated cost of capital projects planned to mitigate loading or contingent conditions identified in load studies or required to manage hours of congestion;
9.32.4 The EDC's power quality program and any amendments as required in Section 6;
9.32.5 The EDC's inspection and maintenance program, any amendments as required in Section 7, and any specific actions aimed at reducing outage causes;
9.32.6 Copies of all recent delivery facility planning studies and network capability studies (including CETO and CETL results) performed for any delivery facilities owned by the utility; and
9.32.7 Summaries of any changes to reliability related requirements, standards and procedures at PJM, MAAC, First Reliability Corporation, NERC or the EDC.
9.32.8 Summary of any issues that resulted from the EDC stakeholder meeting reliability complaints and any projects or planning changes that may have been incorporated as a result of such meeting complaints.
10.87 The Performance Report shall include certification by an officer of the EDC of the data and analysis and that necessary projects, maintenance programs and other actions are being performed and adequately funded by the Company as addressed in its annual plans.
12.1 Each EDC shall strive to restore service as quickly and as safely as possible at all times. EDCs shall begin the restoration of service to an affected service area within two hours of notification by two or more customers of any loss of electric service. In situations where it is not practical to respond within two hours to a reported interruption (safety reasons, inaccessibility, multiple simultaneous interruptions, storms or other system emergencies), the EDC shall respond as soon as the situation permits.
13.1 Private or investor owned utilities and cooperatives, operating in Delaware under the regulation of the Commission, are subject to penalties and other remedial actions in accordance with 26 Del.C., §205(a), §217, and §1019. The Commission shall be responsible for assessing any penalty under this section, consistent with Delaware law. In determining if there should be a penalty for violation of a reporting requirement or benchmark standard and, if so, what the penalty amount should be, the Commission shall consider the nature, circumstances, extent and gravity of the violation including the degree of the EDC's culpability and history of prior violations and any good faith effort on the part of the EDC in attempting to achieve compliance. Such penalty shall not exceed $5,000 for each violation, with the overall penalty not to exceed an amount reasonable and appropriate for the violation (maximum of $600,000 per year per reporting or standard violation). Each day of noncompliance shall be treated as a separate violation. In the case of an electric cooperative, in violation of a reporting requirement or benchmark standard, the Commission shall not assess any monetary penalty that would adversely impact the financial stability of such an entity and any monetary penalty that is assessed against an electric cooperative shall not exceed $1,000 for each violation, which each day of noncompliance shall be treated as a separate violation (maximum of $60,000 per year per reporting or standard violation). Nothing in this section relieves any private or investor owned utility or cooperative from compliance or penalties, that may be assessed due to non-compliance with any requirement set forth under any other regulation, statute or order.
13.2 An EDC shall be considered in violation of the SAIDI or Constrained Hours of Operation performance benchmark standard when the annual year-end cumulative measure three (3) year average SAIDI measure or the annual Constrained Hours of Operation measure exceeds the benchmark standard. The term of the violation shall extend for the period of time during which the performance measure exceeded the benchmark standard.
15.1 Planning and Studies Reports, Performance Reports and Major Event Reports provided under this regulation are subject to annual review and audit by the Commission. Each EDC and generation company must maintain sufficient records to permit a review and confirmation of material contained in all required reports.
15.2 Reports shall be submitted as an original and 5 paper copies with one additional copy submitted electronically to the Secretary, Delaware Public Service Commission filed electronically in the Commission's electronic filing system, with certification of authenticity by an officer of the corporation. The electronic copy may be posted on the Delaware Public Service Commission's Internet website.
15.3 Each EDC or generation company may request that information, required under this regulation, be classified as confidential, proprietary and/or privileged material. The requesting party must attest that such information is not subject to inspection by the public or other parties without execution of an appropriate proprietary agreement. Each party requesting such treatment of information is also obligated to file electronically one (1) additional electronic and paper copy of the information, excluding the confidential or proprietary information. The Commission, in accordance with Rule 11 1.11, Rules of Practice and Procedure of the Delaware Public Service Commission, effective May 10, 1999, will treat such information as "confidential, not for public release" upon receipt of a properly filed request. Any dispute over the confidential treatment of information shall be resolved by the Commission, designated Presiding Officer or Hearing Examiner.
Last Updated: December 31 1969 19:00:00.
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