Del. legislation would address utility impact of large-scale electricity users
The Delaware General Assembly is considering House Bill 233 to establish a framework for large electricity users, like data centers, to be held accountable for their utility impact. The bill requires regulated utilities such as Delmarva Power to create a separate rate class with financial securities and long-term contracts to prevent costs from shifting to residential customers. The Public Service Commission will be responsible for developing the rules for these new agreements.
The Delaware General Assembly is actively considering House Substitute 1 for House Bill 233, legislation designed to establish a new framework for managing the impact of large electricity users, particularly data centers, on the state's utility infrastructure. The bill mandates that regulated utilities, such as Delmarva Power, create a distinct rate class for these large energy-use facilities.
Senator Stephanie Hansen (D-Middletown) highlighted that the bill strengthens existing Transmission Security Agreements (TSAs) by requiring financial securities, 15-year contract periods, and termination clauses. Additionally, new Energy Service Agreements (ESAs) would assign all project-imposed costs on the transmission and distribution system directly to the large-load users, include long-term contracts with exit fees, and stipulate curtailment obligations to prioritize grid reliability. Representative Frank Burns (D-Pike Creek, Newark) emphasized the need to protect essential services and residential customers from power cuts due to large energy demands.
Matthew Hartigan, Executive Director of the Public Service Commission (PSC), stated the PSC would develop the detailed rules for these agreements, citing concerns about rising electricity prices in other states due to data centers. Delaware Public Advocate Jameson Tweedie supported the proposal, affirming its intent to directly assign costs caused by data centers to those facilities, thereby preventing cost burdens from being passed to other customers.