Energy

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.

Energy Storage Systems provide benefits to the electric grid, including grid stabilization, managing peak energy demand, and providing backup power during outages. Energy Storage Systems can provide substantial cost savings to residential, commercial, and industrial electricity customers. The construction of Energy Storage Systems will promote economic growth and job creation in Delaware. This resolution directs the Delaware Sustainable Energy Utility (DESEU) to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter, by all electric public utilities in Delaware. The resolution also directs the DESEU to conduct a pilot program and provide guidance and a level of funding, to be determined by the DESEU, to support Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to deploy at least one battery storage pilot project in Delaware to serve their Delaware service territory. The DESEU is to submit a comprehensive report detailing the findings from the battery storage pilot program and the cost-benefit study and analysis of Energy Storage Systems in Delaware on or before June 1, 2026.

This Act strikes the provisions in § 1014 (d) and (e) of Title 26, which allow Commission-regulated electric utilities, municipal electric companies, electric cooperatives, and electric distribution companies not to reimburse, credit, or otherwise remunerate net energy metering customers for any Excess kWh Credits at the end of the annualized billing period. Under the current provisions of § 1014 (d) and (e) of Title 26, Excess kWh Credits revert to the commission-regulated electric utilities, municipal electric companies, electric cooperatives, and electric distribution companies, which denies net metering customers the benefit of the Excess kWh Credits. This Act requires Commission-regulated electric utilities, municipal electric companies, electric cooperatives, and electric distribution companies to credit or carry over any Excess kWh Credits for net energy metering customers so that the customers receive the benefit of the Excess kWh Credits.

Senate Joint Resolution No. 3 was passed by the 152nd General Assembly and signed by the Governor. SJR No. 3 directed all electric utilities in Delaware that offer net metering to solar customers to participate in a cost-benefit study and analysis of net metering in Delaware being undertaken by the Delaware Sustainable Energy Utility to address issues such as cost burdens and cost shifting to non-solar customers. The DESEU was to issue a report by December 31, 2024. However, due to the scope and complexity of the net metering study, the DESEU requires additional time to issue the report. This resolution reinstates the requirements of SJR No. 3 and extends the DESEU's reporting deadline to complete the cost-benefit study and analysis and finalize and issue a report to April 30, 2025.