AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND BATTERY ENERGY STORAGE SYSTEMS.
What changed between versions
The U-BESS definition was expanded to specify that the equipment must be owned and operated by a public electric utility, its primary function must be to participate in wholesale energy markets, and it is explicitly excluded from being considered distribution or a distribution unit (previously only excluded from generation).
The cost recovery mechanism was replaced. The old version required the Commission to determine cost-effectiveness (prudence and net value to ratepayers) and distribute costs among the entire DP&L customer base in a manner it prescribed. The new version creates an annual rider petition process for U-BESS portfolios with 10 MW or greater collective capacity, where the Commission approves a surcharge recovering prudent and reasonable costs including return on rate base, operating, depreciation, and tax expenses.
Added a return-on-equity floor: the U-BESS-related return on equity shall be no less than the return on equity approved in DP&L's most recent electric base rate case, ensuring the utility receives at least its standard rate of return on battery investments.
Added a requirement that U-BESS-related wholesale energy market revenues must lower the U-BESS-related revenue requirement for the benefit of DP&L customers, effectively capping what customers pay based on market performance.
Removed the explicit requirement that the Commission's review include a determination of cost-effectiveness measured by whether U-BESS are prudent and provide net value to ratepayers. The new version uses 'prudent and reasonable costs' language within the rider approval instead.
Added additional sponsors (Rep. Heffernan, Rep. Minor-Brown, Sen. Walsh, and Reps. Carson, Collins, Yearick, Harris), indicating broader legislative support for the final version.
