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DOVER UPDATES - DELAWARE GENERAL ASSEMBLY NEWS

Media Release: February 14, 2025

Statement from Senate Republican Leader Gerald Hocker, Representative Bryan Shupe on Skyrocketing Electric Rates

Delaware Senate Republicans

DOVER, DE – Senate Republican Leader Gerald Hocker (R-Ocean View) and Representative Bryan Shupe (R-Milford) issued the below statement regarding rising energy prices and legislative action that will be taken to address the issue. “Delawareans are facing an unsustainable rise in electricity rates, placing an undue financial burden on families and businesses. We and our colleagues have heard from countless constituents pleading for relief, and we are committed to taking action. “After meeting with stakeholders in the energy sector, it has become clear that Delaware’s green energy mandates, including its participation in the Regional Greenhouse Gas Initiative (RGGI), are a significant factor driving up costs. These policies, while well-intended, are having unintended consequences, forcing Delaware to import electricity at higher costs while discouraging traditional energy investments within our state. “New Hampshire recognized this burden and took decisive action by redirecting RGGI revenues back to ratepayers. We are introducing legislation (Senate Bill 64) to do the same in Delaware. Rather than funneling millions of dollars into government-controlled programs, we should return these funds to the people who paid them, providing much-needed relief to families and businesses struggling with high energy bills. “If this measure fails, we will introduce legislation to withdraw Delaware from RGGI altogether (Senate Bill 65). While reducing emissions is a shared goal, it should not come at the expense of affordability and reliability. Delawareans should not be forced to shoulder ever-increasing costs while our state government continues imposing mandates that make energy more expensive. “Additionally, we will revisit Senate Bill 33 from the 151st General Assembly, which significantly increased Delaware’s Renewable Energy Portfolio Standards (RPS). The current mandates require increasing percentages of Delaware’s electricity to come from renewable sources through 2035, while eliminating the previous cost cap protections that prevented excessive rate hikes. We will push to extend the compliance deadlines and lower the required percentages, allowing more time for Delaware to invest in the necessary energy infrastructure without overburdening ratepayers. “As we move forward, we encourage our colleagues on both sides of the aisle to put Delawareans first. Energy policy must balance environmental responsibility with economic reality, and right now, that balance has been lost. It’s time to correct course and bring relief to our constituents.”

Senate Republican Leader Gerald Hocker
State Representative Bryan Shupe

Caucus Update:  February 7, 2025

Energy Decisions Should Prioritize 

People and Pragmatism

By Joseph Fulgham

Chief of Policy & Communications

Delaware House of Representatives, Republican Caucus

This winter, many Delaware families have seen their electricity bills rise dramatically. While much of the escalation can be traced to cold weather, higher natural gas prices, increased demand, and lower supply, some of it is attributable to our state’s energy policies. On that front, consumers and taxpayers can expect to be reaching progressively deeper into their pockets for years to come. Delaware has a multi-faceted energy plan to make our state “net carbon zero,” a laudable goal but one likely to have far-reaching financial implications. One aspect of this strategy is a law revised in 2021 requiring major electricity utilities to derive an increasing percentage of their power from renewable energy. Currently, 25% of Delaware’s electricity must come from renewables, a rate that will rise annually over the next 10 years, topping out at 40% in 2035. Officials with PJM Interconnection, a regional organization that manages the flow of electricity across 13 states, have cited this as a point of concern. They note that fossil-fuel power plants have been rapidly retired in recent years but that the new renewable energy facilities that were supposed to take their place have not been built fast enough to fill the deficit—squeezing supply. Another component of our energy future is the Delaware Energy Solutions Act of 2024. Signed into law in September, the statute will create a detailed framework for soliciting, considering, and potentially approving future offshore wind projects. The statute authorizes the State Energy Office to seek and develop long-term contracts to purchase 800 to 1,200 megawatts of offshore wind electricity. The impact of the legislation could be considerable. Based on the average generating capacity of an offshore wind turbine (55%), this measure would allow state officials to contract for enough deliverable power to service 460,000 homes—about equal to the total number of housing units in Delaware. According to the International Renewable Energy Agency, offshore wind turbines produce electricity twice as costly as onshore wind and 70% more expensive than photovoltaic solar. Another law, the Delaware Climate Change Solutions Act of 2023, could impact electricity rates and increase state and local spending. The law commits the state to reduce net greenhouse gas emissions by at least 50% (compared to 2005) by 2030 and to have net zero emissions by 2050. Delaware's Climate Action Plan serves as the framework to guide all state agencies toward achieving these goals. While the law does not grant any new regulatory authority, it requires all agencies to take climate change considerations into account when creating new regulations or amending existing ones. The targets can be achieved by combining emission cuts with offsets, such as new farming and forestry practices. Some of these net reductions will likely be accomplished with new regulations, with the expense borne by those affected. The bill also mandates that agencies consider greenhouse reduction goals when buying equipment, performing construction and maintenance, and designing and operating public infrastructure. More familiar to many Delawareans are the regulations adopted by the Delaware Department of Natural Resources and Environmental Control (DNREC) restricting the sales of new fuel-powered vehicles. The rules require that starting a year from this fall, 43% of all new cars and light-duty trucks shipped to Delaware dealerships be zero-emission vehicles. That percentage will increase annually to 82% by Model Year 2032. The regulations prohibit purchasing new fuel-powered vehicles outside the state and registering them here. The rules were adopted even though more than 94% of 4,426 individual public comments submitted to DNREC as part of the regulatory process opposed the proposal. Aside from limiting consumer choice and potentially increasing new car prices, utilities, governments, and property owners will need to invest millions of dollars installing a charging infrastructure supporting the transition to vehicle electrification. These costs will include upgrading the transmission network—a cost that regulators generally allow to be passed on to ratepayers. Holding comfortable majorities in the House and Senate, Democratic lawmakers joined with Gov. John Carney to advance these policies, saying they were needed to battle climate change. However, in a June 2018 opinion column lamenting the lack of pollution controls on out-of-state power plants, the governor stated that "90% of Delaware's air pollution comes from other states." The potential for Delaware's policies to affect global warming or climate change is negligible. Our state's one million residents constitute about 0.012%, or twelve-thousandths of one percent, of the world population. According to the U.S. Energy Information Administration, 36 states have less expensive residential electricity rates (November 2024). Yet, we have implemented laws and regulations that will pile on additional expenses without any real hope of impacting the Earth’s climate. Our energy future should be based on sound science and fiscal pragmatism, not just good intentions. It’s that belief that has led our members to oppose many of our current policies. Our members believe in energy policies that treat citizens and business owners as partners instead of adversaries. Caring for our citizens and recognizing our responsibility to be good stewards of the planet should not be viewed as mutually exclusive goals.

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News Release:  February 7, 2025     
The Rising Cost of Electricity: What You Need to Know

Delaware Senate Republicans

Over the past few weeks, our offices have received numerous complaints from constituents about sharp increases in their electricity bills, with many Delmarva Power customers seeing their charges more than double or even triple from December 2024. We have met with municipal and co-op providers, spoken with energy experts and stakeholders, and are scheduled to meet with Delmarva Power next week to investigate the cause. Following our statement last week, some green energy advocates accused us of spreading misinformation. However, experts and those in the industry consistently point to federal and state regulations reducing traditional energy generation that drive up rates as mandated green energy investments fail to meet growing demand. Even Delmarva Power acknowledged in an interview with First State Update that renewable energy mandates impact overall costs. As we continue gathering information, we will outline a plan to address this crisis. While there is no quick fix, we are committed to introducing legislation to curb rising utility rates.

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DELAWARE GENERAL ASSEMBLY

DELAWARE HOUSE REPUBLICANS

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