Gov. Matt Meyer steps into the discourse around rising energy prices for Delawareans, demanding bill rate adjustments and providing selective support for legislative proposals.
His announcement follows months of outcry from Delmarva Power customers who reported steep energy price spikes during the winter months.
While Delmarva Power says the bill increases are due to the unseasonably cold temperatures and record-high energy utilization, state officials appear to remain skeptical.
Democrats are largely questioning if the spikes can be attributed to recent rate increases granted to Delmarva Power while Republicans insist Delaware's renewable energy standards are at play.
Gov. Meyer's focus is first and foremost on demanding immediate bill rate adjustments for Delmarva Power customers who fell victim to the sharp rate spikes this winter. He says those conversations are ongoing.
“We've made some progress. We're getting there and not ready for an announcement yet, but we think that individual ratepayers who've seen spikes in their bills, unexpected spikes — we're talking 50%, 60, 80% — that's not fair, and we’ve got to make sure everybody's being treated fairly," Meyer said.
The governor also intends to appoint a new public advocate in the coming weeks as Ruth Ann Price, who’s been with the division for over a decade, looks to move on.
The public advocate represents consumers before the Delaware Public Service Commission to ensure reasonable rates, equitable distribution and adequate utility service.
There are five members of the Public Service Commission, with Commissioner Harold Gray’s term coming to an end this year. Meyer says he intends to re-appoint Gray and keep the remaining members of the commission the same.
The governor is also backing a three-bill package from State Sen. Stephanie Hansen (D-Middletown) to bring more transparency to the utility rate-setting process, but says he is weighing the need for creating the Delaware Energy Fund.
State Rep. Debra Heffernan’s (D-Bellefonte) bill would reallocate revenues from the Regional Greenhouse Gas Initiative (RGGI) program to that new fund to provide energy bill assistance to low-income families.
RGGI is a multi-state carbon dioxide cap-and-trade program. Money raised through the initiative is returned to participating states to invest in energy efficiency, renewable energy and other consumer benefit programs.
Meyer says while the purpose of the bill makes sense to him, he wants to explore other potential options for saving ratepayers money, particularly centered on holding Delmarva Power accountable.
“Is that really necessary? Are those families that are truly pressed? Are they seeing spikes in electric bills? Delmarva seems to have a willingness to provide breaks to some of those low income ratepayers — maybe we can get a break from Delmarva without legislation," Meyer said.
He says with the understanding that RGGI revenues are not unlimited, the administration is also looking at the alternative of investing more of that money into energy conservation or other cost-saving initiatives.
On the flip side, Republican lawmakers have introduced a bill to remove Delaware from the RGGI program altogether, calling the initiative a “hidden tax” on ratepayers.
GOP legislators are also proposing scaling back Delaware's Renewable Portfolio Standard — a goal percentage of electricity that utilities must source from renewables — to 10% and freeze it there for 10 years to give time for more renewable energy sources to come online. The standard is presently set at 25% and will increase annually until the First State reaches the goal of 40% in 2035.
Additional Republican-sponsored legislation includes eliminating the state's mandate of having 82% of new cars and trucks sent to Delaware dealerships to be zero-emission vehicles by 2032 and a bill to give operators significant tax breaks to encourage combined-cycle power plant construction.
On Thursday, Democratic lawmakers introduced House Bill 62, which would strengthen utility shutoff protections and ensure residents have access to assistance before losing service.
The legislature is planning to hear several of these bills this month as its break for state budget hearings has come to a close.
As far as further legislative proposals, Meyer says he is in communication with the General Assembly about other cost-saving measures. His administration is also looking into reports of potential fraudulent schemes from third-party energy suppliers.
"We’re constantly talking, and this can get pretty complex with supply. There are Delawareans and Delaware families who are choosing who their supplier is, now through transactions that are not always as transparent as we think they should be. We’re taking a look at that, and we’re basically scrutinizing every line of power bills and gas bills and seeing what we can do to keep costs low and keep costs sustainable for Delaware families," Meyer said.
