SB 325

Abstract

The Public Service Commission (“PSC”) has the exclusive supervision and regulation of all public utilities and over their rates. Public utilities under the Act include natural gas, electric, water, wastewater, and telecommunications. Propane is not included. Yet, for many Delawareans, propane is the only source of heat for the household. The reason that the PSC has supervision and regulation over all public utilities and their rates is because public utilities are necessary for the citizens of this State and supervision is needed to ensure that the rates for these utilities are not usurious and unaffordable for people in this State. This bill adds propane provided through a community gas system under a perpetual easement to the definition of “public utility” thereby given the PSC supervision and regulation over it and the rates charged by providers for it. For many residents of this State, propane, is offered through a community gas system under a perpetual easement. These easements are permanent and not only grant propane providers a perpetual right to enter upon land for the purpose of conveying propane, but also includes a provision that the propane provider be the exclusive provider of propane. These provisions are permanent and binding on every owner of the property in perpetuity. These “in perpetuity” provisions eliminate any competition for the provision of propane for these homeowners by prohibiting them from obtaining propane from any other provider even if that other provider can provide propane at a lower rate. By authorizing the PSC supervision and regulation over the rate of propane provided through a community gas system under a perpetual agreement, it ensures fairness in the rate for the provision of propane.