Energy

This Act updates the electric vehicle rebate program administered by the Department of Natural Resources and Environmental Control in light of changes to federal policies and market forces affecting electric vehicle deployment. The bill provides the Department with additional flexibility to set rebate amounts and improve programmatic offerings. The bill also allows enhanced rebates for an eventual program targeting lower income families.

This bill builds on the customer protections created in Senate Bill 60 in 2025, as follows: 1. Increases transparency in rates and communications by public utilities. 2. Requires regular management audits of certain public utilities and regulatory accounting reviews with each rate case proceeding. 3. Provides greater consistency in the data used by public utilities in rate case proceedings. 4. Limits how much utilities can collect in interim rates before the Commission has ruled on a rate increase request. 5. Prohibits public utilities from recovering certain expenses from ratepayers. 6. Requires the Commission to provide rationale for its decisions in accepting settlement agreements. 7. Puts limits on Delmarva Power’s infrastructure spending, which is a major driver of rate increases. Delmarva Power is operating its electric distribution system at a level far in excess of reliability standards set by the Commission. In support of its parent company’s strategic goal to increase earnings by increasing rate base, Delmarva Power’s annual capital spending leads to frequent rate increase requests to the Commission. Part of Delmarva Power’s capital spending includes “non-mandatory projects,” which by definition are projects that are not required to maintain system reliability. This bill limits the amount of non-mandatory capital expenses the company may recover from ratepayers in rates and is indexed to the company’s rate base, i.e. the value of all its capital assets. Limiting non-mandatory cost recovery will in no way impact Delmarva Power’s ability to restore service after storms nor impact its vegetation management (tree trimming) program.

This Act requires large energy use facilities to produce renewable energy within the state to power their operations to prevent a drain on the electric grid. It provides for a “ramp-up” period requiring that a large energy use facility provide a plan to the Public Service Commission to ramp up their energy production within the state each year so that by the 10th year of operations, the facility is producing 100% of its energy usage through in-state production. This Act also allows the Public Service Commission to regulate electric suppliers insofar as necessary to ensure that large energy use facilities do not negatively affect the reliability of the electric grid.

This Act provides that an individual electric supplier agent cannot be fined or imprisoned for violations under Section 218 of Chapter I of Title 26. This Act provides that the Commission must develop a training and educational program for any entity or individual that is certified by the Commission as an electric supplier that demonstrates a thorough understanding of the Commission’s regulations regarding (1) sales; (2) consumer protection; and (3) any other matter the Commission deems appropriate. This Act requires that third-party electric supplier report data concerning customer choices in its service territory and third-party electric supplier rates. They must submit a monthly report to the Commission on customer choice in their service territories for the preceding month, including all of the following: (1) the total kilowatt hours distributed to customers purchasing electricity from a third-party electric supplier; (2) the total supply cost charged to customers purchasing electric from a third–party electric supplier; (3) the total cost that customers who chose third-party suppliers would have paid under standard offer service; (4) the net third–party total cost compared to the standard offer service; (5) the total third–party average rate; (6) the standard offer service average rate; (7) the difference between the total third–party average rate and the standard offer service average rate; (8) the third–party average residential rates broken out by supplier and the variance between each of these rates and the standard offer service average rate; (9) the third–party average general service nondemand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate; (10) the third–party average general service demand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate; (11) the third–party average large power demand rates broken out by supplier and the variance between each of these third–party rates and the standard offer service average rate; and (12) other pertinent information the Commission considers appropriate. This Act requires a third-party electric supplier to provide residential customers or small commercial customers with written notice of the pending renewal of a contract 90 and 30 days before the end of the contract term is scheduled to occur and provides regulations regarding electric supplier rates. It requires a third-party electric supplier to provide written confirmation within 15 business days of enrollment and written notification at least 15 days in advance of any changes to the customer’s rate. This Act requires a greater than majority vote for passage because § 28 of Article IV of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to give jurisdiction to inferior courts or justices of the peace of “such … misdemeanors as the General Assembly may from time to time … prescribe.”

This Act adds a definition of “utility battery energy storage system” to Chapter 10 of Title 26 of the Delaware Code. Under the definition of “utility battery energy storage system,” battery storage systems that store electricity from the electric grid and discharge the electricity at a later time are not considered generation or a generation unit for electricity when owned and operated by a public electric utility. This Act also authorizes Delmarva Power to own and operate battery energy storage systems after appropriate review and approval by the Delaware Public Service Commission. To mitigate any cost shifts or negative impacts on ratepayers, the Act requires Delmarva Power to make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM markets and utilizing its battery energy storage systems to realize potential savings through distribution-level services.

SB 239 removes an 8% cap on net metering for customer-generated electricity in Delaware. This change directly affects residential and business customers with solar panels or other renewable energy systems, allowing them to send more excess power to the grid without hitting the previous limit. Utilities will now need to accommodate higher levels of customer-generated energy under this policy. The bill was introduced in the Senate on February 19, 2026, and referred to the Environment, Energy & Transportation Committee.

This Act requires that an electric supplier’s interconnection rules, for purposes of net-metering, align with the most recent version of the Interstate Renewable Energy Council’s Model Interconnection Procedures (Procedures) within 12 months of the Procedures’ latest publishing date.