HB470 • 2025

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND BATTERY ENERGY STORAGE SYSTEMS.

Energy Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Osienski
Last action: 2026-06-18
Official status: Senate Environment, Energy & Transportation 6/18/26
Effective date: Not listed

Plain English Breakdown

The official text shows the bill passed the House but was assigned to a Senate committee as of June 2026, so its final status is pending.

Delaware Law on Utility Battery Storage Systems

This bill defines utility-owned battery storage as separate from power generation plants and allows Delmarva Power to build them with state approval.

What This Bill Does

Adds a new legal definition for 'utility battery energy storage system' in Delaware law.
States that these batteries are not counted as electricity generators or distribution units when owned by a public utility.
Allows Delmarva Power (DP&L) to own and operate battery systems after the Public Service Commission approves them.
Requires DP&L to make best efforts to maximize value from these systems, including participating in PJM markets and using them for savings.
Lets customers pay for large battery portfolios through a special fee if approved by the commission.

Who It Names or Affects

Delmarva Power (DP&L)
The Delaware Public Service Commission
Electricity ratepayers in DP&L's service area

Terms To Know

Utility battery energy storage system (U-BESS): Equipment owned and operated by a public electric utility that stores energy from the grid to discharge later.
Generation unit: A facility or machine that creates new electricity, which these batteries are not considered to be under this law.
PJM markets: Regional wholesale energy markets where utilities can participate to earn value from battery systems.

Limits and Unknowns

The bill does not set a specific date when the law takes effect.
It requires Delmarva Power to make 'best efforts' to maximize value, but does not guarantee exact savings amounts.
A special fee for customers only applies if the battery portfolio has a total capacity of 10 megawatts or more.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA 1

1 • Osienski

Stricken 6/18/26

Plain English: This amendment changes how a utility company can own and operate battery energy storage systems in Delaware by requiring strict approval based on whether the projects save money for customers.

It clarifies that batteries are not just generation or distribution units, removing confusion about their legal status.
The Public Service Commission must approve any new battery system only if it is cost-effective and provides net value to people who pay electric bills.
The utility company must try to earn money from the batteries through market sales and tax credits to lower costs for customers instead of guaranteeing profits for shareholders.
After approval, the utility company must send regular reports to the Commission showing how much benefit and revenue the battery systems are generating.

The amendment text does not specify exactly what schedule or format the required reports will use since that is left for the Commission to decide later.
Some technical terms like 'PJM Interconnection markets' and specific financial mechanisms mentioned in the synopsis are complex concepts that require further context to fully understand.

HA 2

2 • Osienski

Stricken 6/18/26

Plain English: This amendment changes how battery energy storage systems are defined and sets new rules for the utility company DP&L on costs, customer billing, and reporting.

It clarifies that a utility battery system is not considered an electricity generator because it only stores power from the grid to use later.
The Public Service Commission must approve any new storage systems by checking if they are smart choices that provide net value to customers.
If approved, all costs for these batteries will be paid by every customer in Delaware through a special fee on their bills, even those who buy power from other suppliers.
DP&L must try to save money and earn revenue using the batteries and submit regular reports to show how well they are working.

The text does not explain exactly what specific numbers or tests will be used to decide if a battery system is 'prudent' or provides 'net value'.
It mentions that DP&L should make 'best efforts' to save money, but it does not define how those efforts are measured.

HA 3

3 • Osienski

Passed 6/18/26

Plain English: This amendment clarifies what counts as a utility battery energy storage system and sets new rules for how costs are shared among customers if the power company builds one.

It defines that these batteries store electricity from the grid to use later but do not count as generating their own power.
The state Commission must approve any new battery projects only after deciding they save money and provide value to customers.
If approved, the cost of the project will be shared by all Delmarva Power (DP&L) customers in Delaware instead of just some groups.
The power company must try to earn as much revenue as possible from these batteries and submit regular reports showing how well they work.

The text does not explain exactly what specific 'value streams' or market rules the power company must follow beyond general terms.
It is unclear which customers might have been paying for costs under the old version of the bill that was removed.

Bill History

2026-06-18 Delaware General Assembly
Amendment HA 2 to HB 470 - Introduced and Placed With Bill
2026-06-18 Delaware General Assembly
Amendment HA 1 to HB 470 - Stricken in House
2026-06-18 Delaware General Assembly
Amendment HA 2 to HB 470 - Stricken in House
2026-06-18 Delaware General Assembly
Amendment HA 3 to HB 470 - Introduced and Placed With Bill
2026-06-18 Delaware General Assembly
Amendment HA 3 to HB 470 - Passed In House by Voice Vote
2026-06-18 Delaware General Assembly
Passed By House. Votes: 39 YES 2 ABSENT
2026-06-18 Delaware General Assembly
Assigned to Environment, Energy & Transportation Committee in Senate
2026-06-17 Delaware General Assembly
Amendment HA 1 to HB 470 - Introduced and Placed With Bill
2026-06-12 Delaware General Assembly
Reported Out of Committee (Natural Resources & Energy) in House with 8 On Its Merits
2026-06-04 Delaware General Assembly
Introduced and Assigned to Natural Resources & Energy Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND BATTERY ENERGY STORAGE SYSTEMS.
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.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Osienski & Rep. Heffernan & Rep. Minor-Brown & Sen. Walsh

Reps. Carson, Collins, Yearick, Harris

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.