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State To Issue RFP To Select State-Endorsed Retail Supplier for Opt-In Program (State May Market Supplier's Service)

December 15, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Delaware Electricity Affordability Committee yesterday said that it would draft and issue an RFP to select a retail electric supplier for a statutory opt-in retail electric affinity program, under which the State would endorse, and potentially market, service from a chosen supplier

As previously reported, Senate Substitute No. 1 For Senate Bill 160 provides that the Committee shall evaluate an opt-in affinity program based on the potential benefits derived from a combination of a multi-year fixed price per kWh offer and value added products and services to help customers better manage their overall energy bills, and other potential consumer benefits. The Chair of the Committee is empowered to select and contract with a supplier for such program, with directives to the PSC to engage in customer awareness and marketing activities.

The opt-in program could be for both residential and small business customers.

Though the author of the statutory provision for the opt-in affinity program, Delaware State Senator Colin R. J. Bonini, said that the language of the bill was specifically designed so as to not require an RFP, the Electricity Affordability Committee disagreed and said that to avoid potential challenges to the program, an RFP consistent with other state procurement rules should be conducted.

Bonini, concerned with starting the affinity program as soon as possible so customers can see maximum savings, said that he personally called suppliers in advance of the Committee's September 30, 2015 meeting asking them for their proposals. Only a single supplier, Direct Energy, made a proposal at such meeting

Click here for the specifics of Direct Energy's proposal

Bonini called issuing an RFP after Direct Energy's proposal has been made public unfair, as now other suppliers are able to see Direct's offer, appropriate it, and undercut it.

Ron Cerniglia, Director of National Advocacy and Government & Regulatory Affairs for Direct Energy, told the Committee that Direct is now incredibly disadvantaged since its offer was made public.

While the RFP will reflect the statutory criteria of a multi-year fixed price per kWh offer and value added products and services, the Committee said that the RFP would otherwise be drafted broadly in terms of the sought product, essentially telling suppliers to propose their best offering. Additionally, the Committee indicated that responses would not be judged on price alone, but also on added value and services

See Related Story Today: Delaware Electricity Affordability Committee Endorses POR, Other Market Enhancements

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