DOVER, Del.- A group of Democratic lawmakers has introduced three bills aimed at increasing oversight of public utility companies in Delaware, citing concerns over rising energy costs.
The legislation, sponsored by Sen. Stephanie Hansen and Rep. Debra Heffernan, seeks to establish new regulations on rate setting and operational expenses for utilities regulated by the Delaware Public Service Commission (PSC).
The proposals come after a recent Senate Environment, Energy & Transportation Committee hearing, where Delmarva Power representatives discussed significant increases in consumer energy bills.
Supporters of the bills argue that the measures would provide greater consumer protections and limit unexpected price hikes.
Senate Bill 59 would revise the standards used by the PSC to determine which costs can be included in a utility’s rate base. Delaware is one of only two states that does not use the "prudence" standard, instead applying the "business judgment rule," which assumes in favor of the utility.
Proponents of the legislation argue that adopting the prudence standard would provide stronger oversight and prevent unnecessary cost increases for ratepayers.
Senate Bill 60 would cap annual capital expenses recoverable by Delmarva Power and prohibit cost recovery for expenses such as lobbying, political contributions, charitable donations, and certain advertising and public relations activities.
Senate Bill 61 focuses on transparency in decision-making at PJM Interconnection, the regional grid operator overseeing electricity generation and transmission across the Mid-Atlantic. The bill would require all electric utilities in Delaware to disclose votes and positions taken on PJM matters that could impact electric rates, grid reliability, and energy transition efforts.
The Senate Environment, Energy & Transportation Committee is set to hold a joint hearing with the House Natural Resources and Energy Committee on Monday, Feb. 24, at 1 p.m. in the Senate Chamber.
No legislation will be voted on at the hearing.