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

Plain English Breakdown

Checked against official source text during the last sync.

Amendment Clarifying Utility Battery Storage Rules

This amendment clarifies how utility battery energy storage systems are defined and sets rules for their approval, costs, and reporting.

What This Bill Does

• Clarifies the definition of a utility battery energy storage system (U-BESS).
• Requires that any approval includes a check on cost-effectiveness to ensure net value for ratepayers.
• Removes language about recovering costs that was more favorable to Exelon shareholders than Delmarva Power customers.
• States that approved costs must be shared by all DP&L Delaware customers in a way the Commission approves.
• Requires Delmarva Power to submit reports showing how effective and beneficial these batteries are.

Who It Names or Affects

• Delmarva Power (DP&L)
• The Public Service Commission
• All DP&L customers in Delaware

Terms To Know

U-BESS

Utility Battery Energy Storage System, which stores energy from the grid to use later.

Cost recovery

The process of charging customers for expenses related to building or running a project.

Limits and Unknowns

• The text does not state when this law will officially take effect.
• The specific schedule and details for the required reports are decided later by the Commission.

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 cost recovery shall be in a manner approved by the Commission from the entire DP&L customer base.
(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. 3

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 U-BESS. The Commission’s review shall include a determination of cost-effectiveness measured by whether the U-BESS are prudent and provide net value to ratepayers. If U-BESS are approved, costs shall be distributed among the entire DP&L Delaware customer base 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 U-BESS, including participating in all available PJM Interconnection markets and utilizing its U-BESS 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 cost recovery shall be in a manner approved by the Commission from the entire DP&L customer base.

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