DOVER, DE - Delaware lawmakers have introduced additional legislation they hope will provide relief to Delawareans facing soaring utility costs.
Announced just days after an initial bill was introduced, House Bills 59, 60, and 61 are further aimed to assist consumers while also introducing new guardrails to prevent dramatic price spikes. The prime sponsor of the legislation, State Senator Stephanie Hansen, cited a lack of competition and accountability for Delmarva Power as one of the root causes of the spikes.
“The reality is that public utilities are regulated monopolies. Practically speaking, a public utility company like Delmarva Power has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face,” Hansen said. “We owe it to the public to ensure that our utility companies are held accountable for their actions and won’t be allowed to impose undue price increases on their customers.”
SB 59 would change the Public Service Commission standards as to how which costs are included in a utility’s rate base are determined. Currently, Delaware uses the “business judgement rule,” which prevents the PSC from prohibiting costs in a rate base even if the costs could have been avoided. The bill seeks to change to a “prudence” standard, which would allow the state to deny certain expenses and costs that would be passed onto the consumer. According to Hansen, Delaware is only one of two states that does not use the “prudence” system.
SB 60 would cap the allowable annual capital expenses that Delmarva Power recovers through rates, as well as prevent the utility company from recovering expenses used for lobbying, political contributions, charity, and certain advertising and public relations.
Finally, SB 61 is aimed at increasing transparency in relation to PJM Interconnection, the Mid-Atlantic regional electric grid operator. Currently, utilities vote on rules at PJM in private, according to lawmakers. Those rules ultimately impact electric rates, grid reliability, and clean energy transition, Democratic lawmakers say.
On Friday, Republican lawmakers in Delaware also expressed concern with the rate spikes and underscored a need to address them. Lawmakers gave the following options for those seeking assistance with their utility bills:
-Low-Income Home Energy Assistance Program (LIHEAP): Provides financial aid to eligible households to help cover heating costs.
-Good Neighbor Energy Fund: A program administered by Catholic Charities that assists those who don’t qualify for LIHEAP but still need help.
-Energize Delaware Home Energy Counseling: Offers guidance on lowering energy costs through efficiency improvements.
-Delaware Weatherization Assistance Program: Helps low-income households reduce energy costs by improving home energy efficiency through weatherization services. Learn more here.
-Chesapeake Sharing Fund: Provides emergency energy assistance to households in need through grants.
-Delaware ASSIST: A state-run portal where residents can apply for various assistance programs, including energy assistance.
-Delmarva Power Bill Payment Assistance: Offers programs to help Delmarva Power customers manage and reduce their energy bills.