The Delaware General Assembly passed legislation last week thatwill bring retail choice to the majority of the state’s electricitycustomers by October 2000 and to all of its power customers byApril 2001. The bill is expected to be signed into law by Gov.Thomas R. Carper next week.

Under the “Electric Utility Restructuring Act of 1999,”residential customers and small-medium commercial and industrialusers of Conectiv – the state’s largest utility – and DelawareElectric Cooperative (DEC) will be able to choose their ownsuppliers in 18 months and 24 months, respectively, after thelegislation is enacted. The kick-off date for this class ofConectiv customers would be Oct. 1, 2000, while the starting datefor DEC customers would be April 1, 2001.

Larger commercial and industrial customers of Conectiv and DECwould be eligible for retail choice a year earlier – Oct. 1, 1999and April 1, 2000, respectively. Establishments such as officecomplexes and other medium-to-large commercial and industrial usersof Conectiv and DEC would be eligible Jan. 15, 2000 and July 1,2000, respectively.

The measure also would give Conectiv’s residential users a 7.5%rate cut beginning Oct. 1999, which would be frozen for a four-yearperiod. Other Conectiv customers would get a three-year rate freezeeffective the same date. Rates for DEC customers are expected to becut by about 4% effective May 1, 1999, pending approval of theDelaware Public Service Commission, and then frozen for a five-yearperiod starting April 1, 2000.

With this legislation, Delaware joins other states in theregion, such as Pennsylvania, Virginia and New Jersey, that haveeither begun implementing customer choice or have already passedrestructuring laws. Delaware has been “basically surrounded” bystates moving towards retail choice, said Conectiv spokesman TedCaddell. This bill will enable the state to stay at the “forefrontof regional competition” in the electricity market, noted ConectivChairman and CEO Howard E. Cosgrove.

Conectiv, which was formed last year by a merger of DelmarvaPower & Light and Atlantic Energy, serves 350,000 electriccustomers in Delaware, while DEC provides service to about 56,000users. There are nine municipal providers in the state, but theywill not be subject to the deadlines for choice outlined in thelegislation.

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