Delaware Code Title 26. Public Utilities § 1406. Interconnections and wholesale bulk sales

(a) In order to ensure adequate supply to all consumers within the drought sensitive area during periods of anticipated or actual drought, the Commission has the jurisdiction and authority to order and direct a jurisdictional water utility to interconnect its facilities with those of other water utilities and to offer for sale to other utilities water supply at wholesale bulk rates previously approved by the Commission.  The wholesale bulk rates must be based on the costs of service principles for the provision of the water supply.  In making determinations concerning interconnection and wholesale sales, the Commission shall ensure that an interconnection or sale does not jeopardize the ability of the jurisdictional water utility to provide adequate supply to its own customers.  For good cause, the Commission may order an interconnection on an expedited basis.

(b) In order to ensure adequate supply to all consumers within the drought sensitive area during periods of anticipated or actual drought, each nonjurisdictional utility shall, when reasonably necessary, interconnect its facilities with those of other water utilities and offer to sale to other water utilities water supply at just and reasonable wholesale bulk rates.  The wholesale bulk rates must be based on the costs of providing the water supply.  In interconnecting and offering for sale water supply, a nonjurisdictional water utility shall ensure that an interconnection or sale does not jeopardize the ability of the nonjurisdictional water utility to provide adequate supply to its own customers.

(c) The provisions of subsections (a) and (b) of this section do not preclude a water utility from otherwise contracting to provide water supply to other water utilities at just and reasonable wholesale bulk rates.  However, in the case of a jurisdictional water utility, the wholesale bulk rates must be approved by the Commission.