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DelawareHS 1 for HB 233153rd General Assembly (2024–2026)HouseWALLET

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO LARGE ENERGY USE FACILITIES.

Sponsored By: Frank Burns (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 0 benefits, 3 costs, 5 mixed.

Large facilities need approved power agreements

Large energy facilities cannot start operating without an approved electric service agreement and a transmission agreement with their regulated utility. The Public Service Commission must also approve their connection and separate rate schedule before service begins. Utilities must establish the required rates and electric service agreements within 180 days after final Commission rules, and file required rate applications within that period. Delaware Power & Light has no duty to supply these facilities without an approved electric service agreement. Transferring an electric service agreement requires the Commission’s written approval.

Large facilities owe long-term minimum payments

Large-facility agreements must last at least 10 years after the demand ramp-up and at least 15 years overall. Ramp-up cannot exceed five years and must include interim demand levels. Agreements require minimum distribution payments based on projected use or at least 90% of agreed peak capacity; similar supply payments apply when buying power from the utility. Annual capacity and network peak contributions must each reach at least 90% of agreed capacity, adjusted for line losses. Ending service requires at least five years’ notice and exit fees covering unpaid investments, alongside enforceable curtailment duties and financial guarantees.

Large facilities pay shared energy charges

Large energy facilities must pay $0.000190 per kilowatt-hour toward Delaware’s Low-Income Charge. They must also pay $0.000712 per kilowatt-hour to the Green Energy Fund. Both charges appear in their rates, and the Commission can increase them for future large facilities. Their rates must include a proportional share of the unavoidable charge funding a qualified fuel cell provider. These facilities also count as end-use customers under renewable-energy rules and cannot claim the exemption in § 353(b).

Large-load costs bring protections and credits

Large facilities must cover costs tied to their service, including connections, capacity, transmission, studies, power-price effects, and grid reliability backstop purchases. Costs that cannot be assigned directly go to the large-facility class rather than other customers, to the extent required and feasible. An independent consultant checks expected revenue against added system costs every three years, or sooner when the Commission finds a review necessary. Revenue shortfalls require a utility cost-recovery proposal, developed with the facility, that also shows a benefit for system customers; the large-facility class bears recovery and review costs. After specified review costs are recovered, remaining funds provide direct residential and small commercial bill credits for impacts not addressed by large-load rates.

Large electricity users face new thresholds

A facility qualifies under the new rules at actual or projected monthly maximum demand of at least 50 megawatts with an 85% load factor. It also qualifies at monthly maximum instantaneous demand of at least 100 megawatts. Related facilities can be counted together based on location, ownership or control, shared electrical equipment, or grid reliability risks. Facilities already operating when the law took effect are excluded. But changes that push their use above the thresholds trigger service-agreement approval rules.

Large facilities face deeper grid reviews

Applicants must report power sources, transmission needs, backup power, curtailment plans, expected lifespan, and studies of electricity costs and reliability. The Commission reviews cost protection, reliability, public health and safety, project viability, local labor, prevailing wages, and community effects. Flexible power use and qualifying new Delaware generation count in favor of approval. That generation must have no prior participation in PJM’s main capacity auction, match the facility’s load, and receive State Energy Office approval for consistency with state climate and renewable-energy goals. The Commission can require a registry tracking demand forecasts and compliance with new-capacity or managed-connection requirements.

Large facilities face targeted power cuts

Large facilities must accept interruptible power for PJM curtailment duties assigned to the DPL Zone. For loads connected after December 31, 2026, utilities must establish plans for power cuts before or during emergencies, where feasible and safe. Plans prioritize noncritical large-facility loads before other noncritical loads, and critical large-facility loads before other critical loads. They must set performance rules and penalties, warn prospective customers about cuts and limits on serving critical loads, and coordinate cuts when feasible. Covered facilities must distinguish critical loads or certify none, maintain readiness, and supply grid data for utility-controlled cuts. An exemption is available for new Delaware generation with no prior PJM capacity-auction participation that matches the facility’s load and receives State Energy Office approval for consistency with state climate and renewable-energy goals.

Large facilities must secure unpaid costs

Facilities seeking new or changed service must provide financial security covering assigned costs throughout the electric service agreement and until investments are recovered. This protects existing utility customers from those costs. A separate transmission security agreement requires bonds, letters of credit, or cash-equivalent guarantees for annual transmission payments. Its security period lasts 15 years after ramp-up; ramp-up cannot exceed five years, termination requires five years’ notice, and the demand floor is 90% of agreed capacity. Agreements must allow Commission-required updates for changed finances, guarantors, markets, federal energy orders, or PJM rules, including new information and revised collateral.

Sponsors & Cosponsors

Sponsor

  • Frank Burns

    Democratic • House

Cosponsors

  • Mara Gorman

    Democratic • House

  • Krista Griffith

    Democratic • House

  • Stephanie L. Hansen

    Democratic • Senate

  • Kerri Evelyn Harris

    Democratic • House

  • Debra Heffernan

    Democratic • House

  • Larry Lambert

    Democratic • House

  • Melissa Minor-Brown

    Democratic • House

  • Eric Morrison

    Democratic • House

  • Josue O Ortega

    Democratic • House

  • Sophie Phillips

    Democratic • House

  • Cyndie Romer

    Democratic • House

  • Sherae'a Moore

    Democratic • House

  • Ray Seigfried

    Democratic • Senate

  • Claire Snyder-Hall

    Democratic • House

  • Laura V. Sturgeon

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 67 • No: 23

House vote • 7/1/2026

Passed (SM required)

Yes: 27 • No: 8

Senate vote • 6/30/2026

Passed (SM required)

Yes: 15 • No: 6

House vote • 6/16/2026

Passed (SM required)

Yes: 25 • No: 9

Actions Timeline

  1. Signed by Governor

    8/26/2026Governor

  2. Passed By House. Votes: 27 YES 8 NO 6 NOT VOTING

    7/1/2026House

  3. Passed By Senate. Votes: 15 YES 6 NO

    6/30/2026Senate

  4. Amendment SA 2 to HS 1 - Passed By Senate. Votes: 20 YES 1 NO

    6/30/2026Senate

  5. Amendment SA 1 to HS 1 - Stricken in Senate

    6/30/2026Senate

  6. Reported Out of Committee (Environment, Energy & Transportation) in Senate with 2 Favorable, 3 On Its Merits

    6/30/2026Senate

  7. Amendment SA 2 to HS 1 - Introduced and Placed With Bill

    6/29/2026House

  8. Amendment SA 1 to HS 1 - Introduced and Placed With Bill

    6/23/2026House

  9. Assigned to Environment, Energy & Transportation Committee in Senate

    6/16/2026Senate

  10. Passed By House. Votes: 25 YES 9 NO 2 NOT VOTING 5 ABSENT

    6/16/2026House

  11. Amendment HA 3 to HS 1 - Passed By House. Votes: 33 YES 2 NO 2 NOT VOTING 4 ABSENT

    6/16/2026House

  12. Amendment HA 3 to HS 1 - Introduced and Placed With Bill

    6/16/2026House

  13. Amendment HA 2 to HS 1 - Stricken in House

    6/16/2026House

  14. Amendment HA 2 to HS 1 - Introduced and Placed With Bill

    6/16/2026House

  15. Amendment HA 1 to HS 1 - Passed By House. Votes: 26 YES 3 NO 9 NOT VOTING 3 ABSENT

    6/16/2026House

  16. Roll Call on Motion to Table HS 1 for HB 233 - Defeated by House Vote: 16 YES 20 NO 5 ABSENT

    6/16/2026House

  17. Amendment HA 1 to HA 1 - Passed In House by Voice Vote

    6/16/2026House

  18. Amendment HA 1 to HA 1 - Introduced and Placed With Bill

    6/16/2026House

  19. Amendment HA 1 to HS 1 - Introduced and Placed With Bill

    6/16/2026House

  20. was introduced and adopted in lieu of HB 233

    5/21/2026House

Bill Text

  • Current

    5/21/2026

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