Bill Text: DE HB470 | 2025-2026 | 153rd General Assembly | Draft
Bill Title: An Act To Amend Title 26 Of The Delaware Code Relating To Public Utilities And Battery Energy Storage Systems.
Sponsorship: Partisan Bill (Democrat 4)
Status: (Introduced) 2026-06-12 - Reported Out of Committee (Natural Resources & Energy) in House with 8 On Its Merits [HB470 Detail]
Download: Delaware-2025-HB470-Draft.html
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SPONSOR: |
Rep. Osienski & Rep. Heffernan & Rep. Minor-Brown & Sen. Walsh |
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 470
AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND BATTERY ENERGY STORAGE SYSTEMS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 1001, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1001. Definitions.
As used in this chapter, unless the context otherwise requires:
(28) “Utility battery energy storage system” or “U-BESS” means equipment or systems owned and operated by a public electric utility which equipment’s primary function is to participate in wholesale energy markets by storing energy from the grid and discharging it at a later time. U-BESS is not considered generation or a generation unit nor is it considered distribution or a distribution unit under this title.
Section 2. Amend § 1008, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1008. Duties of electric distribution companies.
(a) Each electric distribution company shall maintain its facilities and provide products and services which are safe, efficient, sufficient, adequate, and reliable. Each electric distribution company shall implement procedures to require all electric suppliers to deliver energy to the electric distribution company at locations and in amounts which are adequate to meet each supplier’s obligations to its customers.
(b) (1) The Commission is hereby granted the authority to require DP&L subject to its jurisdiction to develop and implement demand-side management programs designed to reduce overall electricity consumption by its customers and/or to reduce usage by customers during peak periods, such as time of use rates, advanced metering infrastructure, central air-conditioning and hot water heating cycling off and on programs, interruptible rates, etc. However, in no such instance shall electric distribution companies subject to the Commission’s jurisdiction be authorized to implement peak time billing. Upon development of such demand-side management program or programs, DP&L shall file such program or programs with the Commission for the Commission’s review and approval.
a. The costs that DP&L incurs in developing and implementing their demand-side management programs, as well as the costs incurred by DP&L in administering all demand-side management programs approved for implementation by the Commission, shall be included and recovered in DP&L’s distribution rates.
b. By June 5, 2006, the Commission shall open a docket to evaluate the desirability, feasibility and cost effectiveness of requiring advanced metering technology, including time of use metering to be utilized throughout or selectively in the service territories of DP&L. The Commission may require that such a technology be deployed in a cost effective manner after such evaluation has been made and hearings have been held. As part of the evaluation, the Commission shall review all customer pricing implications of any particular metering technology investigated. The Commission shall not authorize such technology to be deployed in a manner that permits 30-day peak demand billing except as approved by the General Assembly.
c. DP&L may, after appropriate review and approval of the Commission, own and operate utility battery energy storage systems. On an annual basis, DP&L may petition the Commission for approval of a proposed rider applicable to all of DP&L’s U-BESS portfolio, which is comprised of all DP&L’s U-BESS with a collective capacity of 10 MW or greater. Upon a finding by the Commission that the proposed rider is in the public interest, the Commission shall enter an order approving a surcharge that authorizes DP&L to recover the prudent and reasonable costs that DP&L incurs for the development, construction, ownership, operation, and maintenance of its U-BESS portfolio. At a minimum, the rider shall recover the U-BESS-related overall cost of service-based revenue requirements including a return on rate base, operating, depreciation, and tax expenses, with the U-BESS-related wholesale energy market revenues lowering the U-BESS-related revenue requirement for the benefit of DP&L’s customers. The U-BESS-related return on equity shall be no less than the return on equity approved in DP&L’s most recent electric base rate case. To mitigate any cost shifts or negative impacts on ratepayers, DP&L shall make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM Interconnection markets and utilizing its battery energy storage systems to realize potential savings, including any applicable tax credits.
c. d. The Commission shall have the authority to promulgate any rules and regulations it deems necessary to accomplish the development and implementation of demand-side management programs by DP&L.
(2) DEC shall, at a minimum, maintain its current efforts in providing demand-side management programs. DEC shall report on its demand-side management efforts to the Public Service Commission, Controller General and Director of the Office of Management and Budget by January 31, 2007, and January 31 of each subsequent year thereafter.
SYNOPSIS
This Act adds a definition of “utility battery energy storage system” to Chapter 10 of Title 26 of the Delaware Code. Under the definition of “utility battery energy storage system,” battery storage systems that store electricity from the electric grid and discharge the electricity at a later time are not considered generation or a generation unit for electricity when owned and operated by a public electric utility.
This Act also authorizes Delmarva Power to own and operate battery energy storage systems after appropriate review and approval by the Delaware Public Service Commission. To mitigate any cost shifts or negative impacts on ratepayers, the Act requires Delmarva Power to make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM markets and utilizing its battery energy storage systems to realize potential savings through distribution-level services.
