DOVER, DE- Three key bills—Senate Bills 59, 60, and 61—were discussed Wednesday by the Senate Environment, Energy, and Transportation Committee, all aimed at increasing oversight, accountability, and consumer protections in the utility rate-setting process.
As utility costs continue to rise in Delaware, lawmakers are exploring potential solutions to alleviate the financial strain on residents. One central question dominated the discussion: What can be done to control costs for consumers?
One of the three bills discussed, Senate Bill 59, would change how rate increases are reviewed by shifting the regulatory standard from the "business judgment rule" to a "prudence" standard.
The prudence standard is used in 48 other states, making Delaware an outlier.
Supporters say it has proven effective elsewhere and should be implemented in the state.
Supporters, like Senator Russell Huxtable (D-DE District 6), also say this would grant regulators more authority to challenge unnecessary rate hikes.
"It gives the PSC additional ability to ask, is this really necessary for you to build out and charge our ratepayers?"
Senate Bill 60 seeks to limit what costs utilities can pass on to customers.
If passed, SB 60 would ban expenses such as lobbying and campaign contributions and reinstate a cap on capital expenditures.
Senator Eric Buckson (R-DE District 16) notes that a cap on utility rates was in place in the past but was removed. He believes reinstating this cap could help reduce costs for consumers.
"They come to the Public Service Commission and justify a rate increase through the cost to maintain and expand infrastructure. Okay. But there's no cap on that. So they can come in and ask for $200 million, or $170 million."
The bill would set a cap of $125 million per rate request.
Senate Bill 61 focuses on increasing transparency by mandating that votes from PJM Interconnection, the regional grid operator, be made public.
Some lawmakers see it as a necessary step toward accountability, while others, like Buckson, remain cautious.
"We all want transparency, but some things that look good on paper actually can create ripple effects that create problems."
The committee’s approval would send the bills to the Senate floor for further debate. If passed into law, they would take effect immediately.