This amendment to HB 470 does the following: (1) Clarifies the definition of a utility battery energy storage system.

Plain English Breakdown

The bill status is 'Stricken', meaning it was removed and did not pass, despite the metadata label saying 'Passed Legislature'. The explanation reflects that it did not become law.

Amendment Defining Utility Battery Systems and Cost Rules

This amendment clarifies the definition of utility battery energy storage systems, requires proof that they provide net value before approval, and sets rules for how costs are shared among all customers.

What This Bill Does

• Clarifies that a utility battery energy storage system is not considered an electric power generator or generation unit.
• Requires regulators to determine if these battery systems are prudent and provide net value to ratepayers before approving them.
• Removes previous language about recovering costs that was more favorable to Exelon shareholders than Delmarva Power customers.
• Mandates that approved costs be paid by all Delaware customer base through an adjustable non-bypassable surcharge, including those served by third-party suppliers.
• Requires the utility to submit reports on a schedule determined by regulators showing how effective and valuable the battery systems are.

Who It Names or Affects

• Delmarva Power (DP&L)
• The Public Service Commission
• All Delaware customers, including those who use third-party power suppliers

Terms To Know

Utility Battery Energy Storage System (U-BESS)

A system that stores energy from the grid and discharges it later; it is not considered a generator.

Non-bypassable surcharge

An adjustable fee added to electric bills for all customers, including those who buy power from other companies.

Limits and Unknowns

• The bill was stricken in the House on June 18, 2026, so it did not become law.
• No effective date is listed because the legislation was removed before final approval.
• Specific details about how often reports must be submitted are left for regulators to decide later.

Official Summary Text

This amendment to HB 470 does the following:
(1) Clarifies the definition of a utility battery energy storage system.
(2) Requires any approval to include consideration of cost-effectiveness.
(3) Removes cost recovery language more favorable to Exelon shareholders than Delmarva Power customers.
(4) Adds language providing that PSC-approved cost recovery be recovered through a non-bypassable surcharge applicable to all Delmarva customers, including customers served by third-party suppliers.
(5) Requires Delmarva Power to submit reports detailing cost effectiveness.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Osienski

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 2

TO

HOUSE BILL NO. 470

AMEND House Bill No. 470 by deleting lines 7 and 8 in their entirety and inserting in lieu thereof the following:

“

energy from the grid and discharging it at a later time. U-BESS is not considered generation or a generation unit.

”.

FURTHER AMEND House Bill No. 470 by deleting lines 33 through 46 in their entirety and inserting in lieu thereof the following:

“

c. DP&L may, after appropriate review and approval of the Commission, own and operate utility battery energy storage systems. The Commission’s review shall include a determination of the cost-effectiveness measured by whether the U-BESS are prudent and provide net value to ratepayers. If U-BESS are approved, all costs arising out of contracts entered into by a commission-regulated electric company pursuant to § 1007(d) of Title 26 shall be distributed among the entire Delaware customer base of such companies through an adjustable non-bypassable surcharge, which shall be established by the Commission. A Commission-regulated electric utility shall be entitled to recover costs incurred as a result of such contracts unless any such costs were not prudent or are in violation of law. All other cost recovery shall be in a manner prescribed by the Commission. 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. After approval of any U-BESS, DP&L shall submit to the Commission, on a schedule determined by the Commission, reports containing information prescribed by the Commission to determine the effectiveness of the U-BESS, including benefits and revenue generated.

”.

SYNOPSIS

This amendment to HB 470 does the following:

(1) Clarifies the definition of a utility battery energy storage system.

(2) Requires any approval to include consideration of cost-effectiveness.

(3) Removes cost recovery language more favorable to Exelon shareholders than Delmarva Power customers.

(4) Adds language providing that PSC-approved cost recovery be recovered through a non-bypassable surcharge applicable to all Delmarva customers, including customers served by third-party suppliers.

(5) Requires Delmarva Power to submit reports detailing cost effectiveness.