• Delaware senators unanimously passed three bills that seek to protect consumers and force the state’s energy industry to be more transparent and accountable to rate payers.
• The bills’ primary sponsor, Sen. Stephanie Hansen, dubbed Thursday “rate payer relief day.”
• The bills now go to the state House of Representatives for consideration.

Lawmakers in the Delaware Senate joined forces Thursday to unanimously pass three bills seeking to protect consumers and force the state’s energy industry to be more transparent and accountable to ratepayers. 

Senate bills aim to protect consumers, force utility and energy transmission operators to be transparent and consider the ratepayer in their decision-making, and limit how much in annual capital expenses Delmarva Power can recover. 

“Today is ratepayer relief day here in the state Senate,” the bills’ primary sponsor, Sen. Stephanie Hansen, said on the chamber floor Thursday afternoon. “The strain that this has placed on Delaware families has been enormous, and more than some can bear.” 

The legislation was prompted following jumps in energy bills across the state this winter, the cause of which has become a hot topic among Delawareans, some of whom have placed the blame primarily on renewable energy.  

Hundreds of angry consumers have filled town halls demanding answers about their bills and questioning how state lawmakers were going to fix it, Hansen said.  

Republicans also signed on as cosponsors to the legislation. 

Republican Sen. Eric Buckson said he and his colleagues are “joining forces” on this issue because the legislation “impacts and helps Delawareans throughout the state who are dealing with high costs.” 

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Senate President Pro Tempore Dave Sokola applauded Hansen’s efforts, championing her expertise in energy policy over the last several years.  

“Her expertise and diligence to put Delaware on a sustainable path toward more certain energy reliability have resulted in three thoughtful bills that will protect ratepayers from future undue cost increases,” he said. “Despite the misinformation being spread by Republicans about the root causes for these increases, Sen. Hansen has remained resolute in her mission to hold our utility companies accountable to their customers by restricting their ability to needlessly raise rates.” 

Using the ‘prudence standard’ 

Senate Bill 59 changes the standards for what costs can be included in a utility’s rate base pitched to the Public Service Commission.  

Delaware is one of two states that doesn’t use the “prudence” standard and instead uses the “business judgment rule,” which favors the utility in rate cases. A switch to the prudence standard raises the utility’s responsibility to consider economic risk to ratepayers.  

Hansen said the prudence rule looks “at the objective reasonableness” of an expenditure based on what the “utility knew or should have known” when the expenditure was made and ask if it was prudent. 

“Other states made this switch because they recognize that regulated utilities are generally monopolies that serve a particular area, and the customers are captive,” the senator said. 

Cap on recoverable expenses 

Senate Bill 60 places a cap on annual capital expenses recoverable by Delmarva Power.  

It does not allow for recovery for lobbying, political contributions, charitable contributions, and certain advertising and public relations activities.  

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An amendment to the bill restricts recovering from membership dues if it involves lobbying or similar activities intended to influence the outcome of legislation, rules, ballot measures or regulatory decisions.  

It also adds an exception to the $125 million cap on annual capital expenses in the event of an emergency or extraordinary circumstances like a natural disaster or tariffs.  

Grid operator transparency 

Senate Bill 61 calls for transparency by PJM Interconnection, which is the regional electrical grid operator controlling generators and transmission lines across the Mid-Atlantic region.  

Delaware joins neighboring states like Pennsylvania, New Jersey and Maryland in raising concerns about the operator’s decisions. Currently, utilities vote in private on rules at PJM, which impact electric rates, grid reliability and transitioning to clean energy.   

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The First State’s bill will require Delmarva Power and the state’s Division of the Public Advocate to annually report their votes at PJM to the Public Service Commission.  

“PJM’s decision-making affects all of us,” Hansen said. “Although the final voting on issues by PJM is public, the voting that occurs at the lower subcommittee meetings is not and this is where the policy is developed which leads to the issues that bubble up to the top.” 

What’s next?  

The bills now go to the state House of Representatives for consideration.  

Got a tip? Contact Amanda Fries at afries@delawareonline.com, or by calling or texting 302-598-5507.