A sweeping package of legislation targeting data center development, energy usage, and consumer costs got were passed in a ceremonial signing this week.
The four measures all gained substantial attention during Delaware's legislative session.
One of these, sponsored by Sen. Stephanie Hansen (D-Middletown) caps what Delaware’s largest energy provider can recover for nonessential spending.
"Mandatory" spending is exempt from the cap. This includes spending on Delmarva's vegetation management program, its inspection and maintenance programs, new business requirements, facility relocations, regulatory requirements, and emergency power failures.
The law limits what Delmarva Power can recover for nonessential infrastructure spending, capping it at 5% of the rate base approved at its most recent case.
On the Senate floor during the bill's discussion in June, Hansen said the cap will decrease spending from $110 million to $50 million annually. But an added amendment, capping spending at $70 million next year, gives the utility a more gradual decrease.
That change helped deliver bipartisan support.
"It was a $40 million discussion," Hansen said. "... It sets in place a long term long term foundational spending curtailment, so it's more than a one-year bill, but right out of the box, it's a $40 million bill."
The measure also requires independent audits of public utilities every five years by the Public Service Commission.
Meyer’s been vocal about rising energy costs. Another piece of legislation that got his signature, asks large load energy users like data centers to bring their own power to the grid.
And he said this week that without this legislation, development of data centers in Delaware created a risk for increased power bills.
“Some of the wealthiest companies and billionaires in the world are building technologies that require extraordinary amounts of energy and infrastructure," he said. "Delaware is not going to ask working people, seniors, and small businesses to pick up their tab.”
The measure says if new large load users can’t bring 100% of their own power immediately, it must offer a ten-year ramp up plan.
Another new law creates a new higher rate class for large use energy users, while an additional measure keeps new large load energy users from applying for state tax incentives.
Delmarva Power released a statement that it supports requirements for large load energy users to protect consumers from increased costs. But it argues the caps on what it can recover for grid upgrades will suspend
or delay projects essential to maintaining reliability and replacing aging equipment.
