Delaware
Delawareans rage against high utility bills. Blame the weather
Role of green energy and the region’s power grid operator
While some blame the skyrocketing utility bills on fees associated with renewable energy programs, Vavala argues that both those fees and rising natural gas prices contribute to only a small fraction of a person’s bill.
While Delmarva paid almost $13 million into the state’s renewable energy portfolio last year, charges related to renewable compliance makeup around 3% of a customer’s bill, according to those reviewed by WHYY.
“Yes, there is a component of the bill that’s related to transmission costs and supply costs. Yes, there’s a component of the bill that’s related to green energy and programs to support that,” Vavala said. “But it is not the key driver in what we’ve seen in terms of this phenomenon occurring for our customers.”
Adding to confusion among ratepayers, Delmarva last November began to include a breakdown of delivery and supply charges on its bills.
Customers have always paid these charges, but they weren’t previously explained on their bills. Delaware residents said they were shocked to learn for the first time that these distribution fees account for more than half of their bill.
Though customers have always paid for delivery and supply, Delmarva bills indicate Delaware residents paid slightly more for the supply of gas in January, which had nothing to do with green energy, but rather cold temperatures.
“Weather does cause increased demand, and so supply-demand crunch, price goes up. So, the reason that people’s bills are going up so high is that, in part, they’re using more, and, in part, the price that is set by the wholesale market, which is also increasing,” said Shelley Welton, presidential distinguished professor of law and energy policy at Penn Carey Law and the Kleinman Center for Energy Policy.
The supply price increase for Delmarva customers in January shows a hike of about 1 cent per 100 cubic feet over December’s bills.
A spokesperson for Delmarva Power said it purchases about half of what it projects it will need in the summer when prices are low.
“Locking in prices, also known as hedging, seeks to limit the impact of wholesale price volatility that may occur throughout the year,” said spokesperson Zach Chizar. “We also continue to make upgrades to our Liquefied Natural Gas Plant in Wilmington, replacing and upgrading systems that give customers a more predictable gas cost rate so that we can secure more natural gas and avoid challenges during peak periods.”
Adding to the shocking cost could be that some January bills encompassed 36 days, rather than the typical 30 days.
One of Meyer’s proposals includes working to expand the state’s renewable energy portfolio.
“The more we get — solar, offshore wind, various alternatives — will help us expand the diversity of energy sources, increase the supply of sustainable energy sources, and in many cases, sources that are good for the environment for the long term,” he said.
Welton said decreasing reliance on natural gas could help control prices. States that rely heavily on natural gas are facing greater energy costs than in areas that use more renewable energy, she said. Like many, she points to the region’s power grid operator, PJM Interconnection.
“You have tons of new resources lined up asking to connect to the grid — and these are mostly clean energy resources. And if you’ve got these resources online, if you’ve got a lot more capacity in the region, you would see prices start to come down. But PJM has been very slow to help these resources connect to the grid,” Welton said.
While freezing temperatures and the resulting usage drove up utility bills in January, costs of electricity are also determined by a complex pricing system overseen by PJM and are expected to climb for Delawareans starting in July, regardless of the weather. That’s because of an increase in certain electricity generation fees, called capacity costs, that the grid operator announced last year. The move will impact 65 million residents in the Mid-Atlantic and Great Lakes regions. In January, PJM agreed to a price cap after Pennsylvania Gov. Josh Shapiro sued.
Delmarva’s Vavala said it’s important PJM incentivizes and encourages all forms of generation — whether that’s renewables, nuclear or traditional forms of power such as natural gas. He also calls for improved transparency in the rate-making process and about investment portfolios.
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Thomas Jefferson University is opening a regional campus of its Sidney Kimmel Medical College in Delaware, an effort that will result in the state’s first medical school.
Jefferson beat out three other bidders to establish the four-year program in partnership with the state. The other bidders were the Philadelphia College of Osteopathic Medicine, the consulting firm PriceWaterhouseCoopers and Ponce Health Sciences University in Puerto Rico, Spotlight Delaware reported.
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The inaugural class of 40 medical students will begin instruction in July 2028. Initially, the campus will be based at the University of Delaware in Newark, with Jefferson faculty providing instruction. A permanent home for the campus is still being finalized, the Inquirer reported.
The medical students will receive 18 months of preclinical training on campus before receiving clinical training from healthcare providers in Delaware’s southern counties, where the state’s physician shortage is most deeply felt. That shortage is compounded by an aging population, Delaware officials said.
“Jefferson is committed to being part of the solution to Delaware’s physician shortage,” Jefferson CEO Dr. Joseph Cacchione said in a statement. “We are proud to help build a future where every Delawarean has access to the care they deserve. Jefferson is all in.”
The school’s creation is being supported by $157.4 million from the Centers for Medicare and Medicaid Services.
Delaware is one of three states without a Doctor of Medicine or Doctor of Osteopathic Medicine program. Since the late 1960s, Jefferson and the Philadelphia College of Osteopathic Medicine have reserved seats for Delaware students.
“Sidney Kimmel Medical College has trained generations of physicians for more than 200 years, more than any other medical college in the country,” Said Ibrahim, dean of Sidney Kimmel Medical College, said in a statement. “It is a privilege to bring our mission to Delaware’s patients and communities.”
Jefferson has announced several expansions recently. The university is establishing a full-time doctor of nursing practice-nurse anesthesia program and several online graduate programs at the Lehigh Valley Health Network Center for Healthcare Education in Lehigh County. It also is opening a satellite respiratory therapy lab at Lehigh Valley Hospital-Cedar Crest in Allentown.
Delaware officials said medical students will start their classroom instruction at UD and then do their clinical training at offices and health care systems in Kent and Sussex counties, where the shortage of doctors is most acute.
However, ChristianaCare, which has its own partnership with Jefferson, is not participating. The state’s largest health care system was part of Philadelphia College of Osteopathic Medicine’s unsuccessful bid to operate the school. In a joint statement from ChristianaCare and PCOM, the two organizations expressed disappointment with not being part of the consortium of higher education institutions and healthcare organizations.
“The path forward raises genuine questions about whether the school’s goals can be fully realized without ChristianaCare’s meaningful participation in its clinical training mission,” it said. “The success of any four-year medical program depends not just on an academic institution, but on a true and committed partnership with its clinical partners — one built on shared mission, mutual investment and trust developed over time.”
Students in the first class can get their tuition subsidized, covering all of their education costs, in exchange for an agreement to work in rural Delaware for five years.
Running the medical school is expected to cost Jefferson $78 million over the next five years. The money is from a federal rural health grant through the Rural Health Transformation Program, which congressional Republicans created in the so-called “One Big, Beautiful Bill Act.”
The program will give $50 billion to every state over five years, though exactly the total each will eventually receive is unclear. Half of the money is to be distributed equally to states and the other half is awarded by the Centers for Medicare and Medicaid Services based on a variety of factors.
The state applied for $1 billion late last year to improve health care in Kent and Sussex counties. The Trump administration has so far allocated Delaware $157 million. Delaware is expected to receive at least $500 million over the life of the fund.
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