Democratic lawmakers introduce a bill to provide financial assistance to low and moderate income families amid growing complaints from Delawareans about rising energy costs.
State Rep. Debra Heffernan’s (D-Bellefonte) House Bill 50 would create the Delaware Energy Fund without adding any extra cost to the state.
The new fund would be paid for by CO2 allowance proceeds, which Delaware receives as a member of the Regional Greenhouse Gas Initiative (RGGI) — a multi-state program designed to cap and reduce carbon emissions from the power sector.
Revenue from RGGI has historically been reinvested in energy efficiency, renewable energy and other consumer benefit programs.
Assistance from the Delaware Energy Fund would be available to households earning less than 350% of the Federal Poverty Level, which for a four-person household would be an annual income of less than $112,525.
“It's not only the lowest income people that are being affected, but it is many of our constituents in the more moderate income range," Heffernan explained.
She adds Delaware Energy Fund recipients would be required to participate in energy savings and efficiency programs as well.
Heffernan's bill would also direct more funding to the Low-Income Home Energy Assistance Program (LIHEAP), which will continue to provide energy bill assistance to eligible residents.
The bill only has Democratic sponsorship and follows last week’s announcement from Republican lawmakers they would be filing their own legislation that would redirect RGGI funds back to ratepayers.
The legislation also comes after Friday's special Senate Environment, Energy and Transportation Committee hearing, where committee members questioned Delmarva Power on recent reports of the skyrocketing energy bills.
Delmarva Power says the increases are due to "unusually cold winter temperatures," noting the utility company has experienced a peak in winter electric load since the polar vortex of 2014 and 2015. In New Castle County, over the course of three days in January, Delmarva Power exceeded its top send out of gas distribution in 25 years.
Some legislators are still skeptical about the root cause of the soaring energy prices, noting nonprofit utility companies throughout the state did not experience the same increases.
State Sen. Kyra Hoffner (D-Dover) also brought potential third-party energy supplier scams to Delmarva Power's attention, noting her disappointment in the utility company's lack of scrutiny on the issue, as well as general inconsistencies with energy bill price hikes.
"It's going out on your bill, on your letterhead, and you're telling us that you're reviewing people's bills. This constituent uses wood to heat their house. Their bills really have not changed. I understand that this year is five degrees colder than last year, but still, they're using wood to heat their house. How much more energy are they actually using?" Hoffner told representatives from Delmarva Power at Friday's hearing. "My constituents — it's every other house. It's not [that] everyone's getting these rates. It's every other house. I have Delmarva. My bill has not gone up one penny. It's been the normal rate. So we've heard a lot of things over the last two hours on how you're going to look into this and look into that, but you're not giving us any real answers."
Heffernan's bill has been assigned to the House Natural Resources & Energy Committee and will likely receive a hearing in March when legislators return from their break following state budget hearings.
“We are hoping to get it fast tracked so that we can get this assistance to people as soon as possible and that's why you know as soon as it's signed we have that the program will be started and set up," Heffernan said.
