DelawareSB 326153rd General Assembly (2024–2026)Senate

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO THE PUBLIC SERVICE COMMISSION.

Sponsored By: Stephanie L. Hansen (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Limits on costs in utility rates

Regulated electric distributors cannot recover annual non-mandatory capital spending above 5% of their latest approved rate base through customer rates. The cap excludes vegetation work, inspections, maintenance, new business and customer needs, facility moves, legal requirements, and emergency failures. Utilities with more than 25,000 customers face limits on distribution rate-case lawyer, outside expert witness, and consultant costs incurred after filing. They cannot recover those costs above the combined spending by Commission staff and the Public Advocate, through any customer charge. The Commission must also use the average-year method to determine the rate base for electric and natural gas distributors.

Temporary utility increases carry refund protections

The Commission can suspend a proposed rate change for up to seven months after filing. Without a decision, utilities can collect 50% of the proposed increase after seven months and 75% after 12 months. A separate option allows temporary increases after 90 days, capped at the lower of 15% of annual in-state operating revenue or $2.5 million annually. That option excludes changes sought under regulations adopted under 26 Del. C. § 304(b); bond-covered interim increases also face the 15% cap. Temporary increases require approved bonds or other security sufficient to refund excess charges when final rates are lower.

Clearer utility bills and rate notices

Utilities must get Commission approval for rate tables covering each customer class. Tables must show the total rate, each charge in billed units, and predictable rate-change schedules. Utilities must include tables in bills, post them online, and place them in their official rate schedules. Tables must be filed and updated at least 30 days before a charge changes; base-rate notices must identify the test period and year. Utilities, Commission staff, and the Public Advocate should use plain language and explain needed technical terms.

Utility audits protect customers from costs

The Commission must arrange electric distribution company management audits at least every five years, unless it finds a specific audit unnecessary. Audits assess management and operating efficiency; summaries are public, and Commission staff and the Public Advocate receive full reports. Utilities get a reasonable chance to request removal of trade secrets or confidential information before public release. When an independent firm is required, the Commission chooses it after consulting the utility and the Public Advocate. The utility pays reasonable audit costs and cannot pass them to customers through rates.

Electric customers get aligned billing measures

Beginning September 1, 2027, regulated electric utilities must change transmission billing for standard offer service customers. They must use the same monthly billing measures used for distribution rates. The law changes the calculation method but does not establish whether a household pays more or less.

Sponsors & Cosponsors

Sponsor

Stephanie L. Hansen
Democratic • Senate

Cosponsors

Frank Burns
Democratic • House
Krista Griffith
Democratic • House
Debra Heffernan
Democratic • House
Kimberly Williams
Democratic • House
Larry Lambert
Democratic • House
Melissa Minor-Brown
Democratic • House
Sophie Phillips
Democratic • House
Cyndie Romer
Democratic • House
Ray Seigfried
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 50 • No: 12

House vote • 6/30/2026

Passed (SM required)

Yes: 30 • No: 11

Senate vote • 6/16/2026