FOR IMMEDIATE RELEASE | February 14, 2025
Contact: Sarah Fulton (302) 401-1114
DOVER —In response to significant public outcry from Delawareans about their rising energy bills this winter, members of the Senate Environment, Energy & Transportation Committee held a special committee hearing Friday morning.
Representatives from Delmarva Power came before the Committee to answer hours of questions about energy usage, rate adjustments, and recent changes to their billing format. Phil Vavala, Vice President of External Affairs, cited that January 23, 2025 was a record-breaking day for electric energy usage, and that January 20-22 were some of the highest natural gas usage days since the year 2000. He went on to cite that the majority of the bill increases for both gas and electric were due to usage as opposed to rate changes.
Despite this, Republican Committee members continued to focus on the impact of state efforts to increase the supply of renewable energy. Such efforts account for only a fraction of year-over-year price increases on consumer bills. Scarcity of renewable sources in Delaware have been a direct result of federal GOP policies to stifle the implementation of the Bipartisan Infrastructure Law and the Inflation Reduction Act, and local government decisions that have thwarted the adoption of offshore wind (Sussex) and utility-scale solar (Kent).
Senator Stephanie Hansen, Chair of the Senate Environment, Energy & Transportation Committee noted that critics of renewable energy projects have taken advantage of Delmarva Power’s change in billing format, coupled with the colder-than-average winter, to advance a false narrative about the costs of renewable energy.
“To say that green energy is the culprit for Delmarva customers seeing astronomical energy bills this winter is wrong. When you look at the actual cause of the increase, you see that it’s driven by the increase in the amount of energy used, the increase in the cost of that energy, and the increase in the cost of the delivery of that energy. Trying to pin this on renewables is disingenuous,” said Sen. Hansen. “We know from our regional grid operator that we will be facing energy reliability problems within a few years if we do not do more to bring more renewable resources into our grid, and offshore wind plays a major role here. We take for granted our ability to turn our lights on, charge our phones, run refrigerators, operate medical equipment — an adequate supply of energy permeates everything that we do on a daily basis, so much so that it is often taken for granted that it will always be available.”
First established in 2005, Delaware’s Renewable Portfolio Standard created a competitive market for utilities to acquire a certain percentage of their retail electricity from renewable sources, like solar and wind energy. Those utilities can either generate electricity from renewable sources themselves or purchase credits from energy producers who have used renewable sources.
Sen. Hansen continued: “We know that once renewable energy projects come online, they inject more total energy into the system. Then it’s a simple matter of supply and demand: when there is a robust and diversified portfolio of energy sources coming onto the grid, increased energy availability will lead to lower prices for consumers. That’s just basic economics.”
According to the U.S. Energy Information Association, Delaware imports nearly 80 times the amount of energy that it produces. Democrats in the Delaware General Assembly have demonstrated a commitment to getting more energy projects online through multiple legislative initiatives targeting energy availability. These bills include Sen. Hansen’s 2021 legislation Senate Bill 2, which created an infrastructure for Delmarva Power customers to participate in community solar projects, and Senate Bill 265, the “Delaware Energy Solutions Act of 2024,” which enabled the creation of framework for the solicitation, consideration, and potential approval of future offshore wind projects.
Hansen continued: “We have to acknowledge that there are entities that have put up a big stop sign [on renewable projects.] We can’t say ‘woe is me’ without taking action to bring new energy projects online. Why don’t we say yes to offshore wind power? Why don’t we say yes to a solar farm in Kent County? We’re all on the same page about getting more electricity into the grid. Our dispute is about what kind of electricity is on the grid — it’s time to take down the stop signs on these critical projects.”
“Skyrocketing energy bills are hitting families across our state hard, and they deserve to know what’s really driving these price increases,” said Rep. Debra Heffernan, Chair of the House Natural Resources and Energy Committee. “The reality is that renewable energy targets have been in place for years without causing major cost increases, and states without them — like Ohio — are also experiencing dramatic price spikes.
Taking an all-government approach, Sen. Hansen and Rep. Heffernan have been working with the Meyer Administration to develop a package of energy legislation that will address the issues of energy affordability, ratemaking, and other issues raised at the hearing.
Rep. Heffernan continued: “I appreciate Delmarva for clearing up this misinformation and helping us get a better picture of what’s really going on with utility prices. Now, our focus is on solutions and getting real relief to the families who need it.”
An additional meeting of the Senate Environment, Energy & Transportation Committee is scheduled for Monday, February 24 at 1 p.m. in the Senate Chamber. This joint committee meeting, held in partnership with the House Natural Resources and Energy Committee, will focus on Delaware’s energy policy, supply, and reliability.
