The Real Fix for Rising Costs

BY MARCUS BEAL

DELMARVA POWER, Delaware’s largest utility, is dedicated to providing reliable energy and ensuring grid stability for residents. However, rising energy demand is outpacing supply, driving up costs for customers. Addressing this challenge requires collaboration with federal, state, and local governments, as well as other utilities. Like many states, Delaware faces challenges with aging infrastructure, climate change, and growing energy demand, and must find solutions to ensure reliable and affordable energy.

Delmarva Power is committed to supporting our customers, including implementing expanded payment programs during the winter and offering budget billing options while also connecting customers with energy assistance. Additionally, energy efficiency programs such as the Whole Home Program offer customers ways to save energy and money. We have also proposed a Winter Normalization Adjustment (WNA) to help stabilize natural gas bills during the winter heating season, protecting customers from weather-related fluctuations.

While Delmarva Power shares the State’s concerns, we believe proposed legislation, including Senate Bills 59, 60 and 61, does not adequately address the root cause of rising energy costs—energy supply.

The majority of Delaware’s energy is purchased through the PJM capacity auction, where prices are driven by supply and demand. As demand continues to grow and usage increases, it’s becoming more difficult for supply to keep pace. To ensure grid reliability, Delaware must invest in a balanced mix of renewable and dispatchable energy sources, including natural gas.

Senate Bill 60 proposes a cap on investments, which could hinder efforts to maintain reliable service. Over the past decade, Delmarva Power has reduced electrical outages by 47% and natural gas interruptions by 48%, and capping reliability investments would jeopardize these improvements.

Senate Bill 61, which calls for public votes at PJM, is unnecessary, as these votes are already publicly available after the final tally. The bill has no impact on customers’ bills and fails to address the underlying energy supply issue.

Delaware’s energy challenges highlight the need for constructive dialogue and action to increase in-state generation. As an energy importer, Delaware faces a major disadvantage. Delmarva Power is committed to working with elected officials, regulators, and stakeholders to develop long-term solutions that meet the state’s energy needs while keeping costs manageable for all customers.

Marcus Beal is the regional vice president of external affairs at Delmarva Power.

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