SB 124 Summary

• Establishes "Qualified Fuel Cell Provider" definition for entities manufacturing fuel cells in Delaware powered by renewable fuels and designated as economic development opportunities by state officials.

• Requires Commission-regulated electric companies to procure renewable energy credits (RECs) and solar renewable energy credits (SRECs) beginning in 2012 for all energy delivered to their end-use customers.

• Allows Commission-regulated electric companies to fulfill up to 30% of SREC requirements using energy from Qualified Fuel Cell Provider Projects at a 6:1 megawatt-hour conversion ratio, with exceptions for market scarcity or increased SREC obligations.

• Requires Commission approval of tariff provisions for Qualified Fuel Cell Provider Projects before cost collection from customers, including 20-year minimum service terms, levelized cost limits, and mechanisms for collecting fuel costs and market revenue adjustments.

• Mandates that 80% of fuel cell capacity be manufactured in Delaware by the second anniversary of commercial operation (or by December 31, 2016), with a maximum of 10 MW allowed from out-of-state sources; requires manufacturer agreements for termination payments if operations cease.