HB 233: AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO LARGE ENERGY USE FACILITIES.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

This Act requires regulated utilities to establish a separate rate class for large energy use facilities that mitigates the risk of costs associated with expanding infrastructure and maintaining reliability in the face of growing demand from being shifted to residential, small business, and other electric customers. Wherever possible, the costs of large energy use facilities should be directly assigned to those facilities, and where direct assignment is not possible, the costs should be allocated to the class of large energy use facilities and not to other customer classes. To accomplish this, the Act sets forth minimum requirements for Electric Service Agreements (ESAs) and Transmission Security Agreement (TSAs) to be in place for any large energy use facility. The Commission shall promulgate regulations to implement these agreements. ESAs shall be reviewed and approved by the Commission prior to the interconnection of a large energy use facility and provide a regulatory framework to enable responsible developers of large energy use facilities to enter into agreements to fairly allocate costs among customer classes. The Public Service Commission will consider several factors in determining whether to approve an ESA, including consistency with the Commission’s regulations; whether the ESA and tariff ensure that all costs attributable to the large energy use facility are assigned to the class of large energy use facilities; whether other customers are adequately protected from the risk of paying stranded asset costs; the impact of the large energy use facility on delivering safe, adequate, and reliability electricity; the impact on the State, including the economy, other ratepayers, and environmental impacts; and the viability of the developer of the facility. In combination, the ESAs and the large load tariff shall ensure that, wherever possible, distribution infrastructure investment costs, capacity procurement costs, reliability backstop procurement costs, transmission infrastructure costs, and study costs attributable to a large energy use facility are all directly assigned to that large energy use facility. Where direct assignment is not possible, these costs should be allocated to the class of large energy use customers. The Commission shall develop an “incremental cost test” to measure the revenues and costs from a large energy use facility to ensure that there are not cost shifts to other customers. The Act further establishes interruptability requirements for large energy use facilities to ensure other customers are protected from reliability impacts caused by large energy use facilities. Facilities that construct or cause to be constructed new in state generation may exempt themselves from interruptability. Finally, the Act requires large energy use facilities to contribute to the low income fund and green energy fund at higher rates than other customers and requires large energy use facilities to contribute to renewable portfolio standard costs and qualified fuel cell provider costs. The Act takes effect upon enactment and regulated utilities must file an application to establish rates required under this Act within 180 days of the effective date.

Sponsors

Sponsors by party (alphabetical): Democratic 16

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 26, 2026Signed by Governor
2. July 1, 2026Passed By House. Votes: 27 YES 8 NO 6 NOT VOTING
3. June 30, 2026Passed By Senate. Votes: 15 YES 6 NO
4. June 30, 2026Amendment SA 2 to HS 1 - Passed By Senate. Votes: 20 YES 1 NO
5. June 30, 2026Amendment SA 1 to HS 1 - Stricken in Senate
6. June 30, 2026Reported Out of Committee (Environment, Energy & Transportation) in Senate with 2 Favorable, 3 On Its Merits
7. June 29, 2026Amendment SA 2 to HS 1 - Introduced and Placed With Bill
8. June 23, 2026Amendment SA 1 to HS 1 - Introduced and Placed With Bill
9. June 16, 2026Assigned to Environment, Energy & Transportation Committee in Senate
10. June 16, 2026Passed By House. Votes: 25 YES 9 NO 2 NOT VOTING 5 ABSENT
11. June 16, 2026Amendment HA 3 to HS 1 - Passed By House. Votes: 33 YES 2 NO 2 NOT VOTING 4 ABSENT
12. June 16, 2026Amendment HA 3 to HS 1 - Introduced and Placed With Bill

Showing 12 most recent of 20 actions. Full history