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HS1FORHB116 • 2025

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.

Energy
Passed Legislature

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

Sponsor
Heffernan
Last action
2025-05-15
Official status
Lieu/Substituted 6/5/25
Effective date
Not listed

Plain English Breakdown

The official source does not specify 'regular residential rates' but mentions 'standard residential distribution rates'.

Act to Provide Discounted Utility Rates for Low-Income Residents

This act allows the Public Service Commission to approve a discounted gas or electric residential utility rate for qualified low-income customers, with utilities working annually with the Department of Health and Social Services to determine eligibility.

What This Bill Does

  • Allows the Public Service Commission to create a special discount rate for low-income customers on their gas or electric bills.
  • Requires that this discount be at least 20% off standard residential distribution rates.
  • Needs utilities to work with the Department of Health and Social Services each year to decide who qualifies for the lower rates.
  • Requires the Public Service Commission to review these special rates every five years.

Who It Names or Affects

  • Low-income customers who qualify for government assistance programs like Medicaid, SNAP, or TANF.
  • Electric and gas utilities in Delaware that offer discounted rates to low-income residents.

Terms To Know

Public Service Commission
The group that makes rules about public utility rates in Delaware.
Department of Health and Social Services (DHSS)
The state agency that helps people with programs like Medicaid, SNAP, and TANF.

Limits and Unknowns

  • It is not clear how many low-income residents will qualify for the discount.
  • The bill does not specify what happens if a customer no longer qualifies for the discount rate after being approved initially.
  • There are no details on how utilities will be compensated for offering these discounts.

Bill History

  1. 2025-07-16 Delaware General Assembly

    HS 2 for HB 116 - Signed by Governor

  2. 2025-06-30 Delaware General Assembly

    HS 2 for HB 116 - Passed By House. Votes: 26 YES 14 NO 1 VACANT

  3. 2025-06-26 Delaware General Assembly

    HS 2 for HB 116 - - Passed By Senate. Votes: 18 YES 3 NO

  4. 2025-06-26 Delaware General Assembly

    HS 2 for HB 116 - Passed By Senate. Votes: 15 YES 6 NO

  5. 2025-06-25 Delaware General Assembly

    HS 2 for HB 116 - Reported Out of Committee (Environment, Energy & Transportation) in Senate with 1 Favorable, 4 On Its Merits

  6. 2025-06-24 Delaware General Assembly

    Substituted in House by HS 2 for HB 116

  7. 2025-06-10 Delaware General Assembly

    HS 2 for HB 116 - Passed By House. Votes: 26 YES 13 NO 2 ABSENT

  8. 2025-06-10 Delaware General Assembly

    HS 2 for HB 116 - Assigned to Environment, Energy & Transportation Committee in Senate

  9. 2025-06-05 Delaware General Assembly

    Substituted in House by HS 2 for HB 116

  10. 2025-05-15 Delaware General Assembly

    Reported Out of Committee (Natural Resources & Energy) in House with 4 Favorable, 4 On Its Merits

  11. 2025-05-13 Delaware General Assembly

    Adopted in lieu of the original bill HB 116, 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 UTILITY RATES.
This Act provides the Public Service Commission with the flexibility to consider and approve a discounted gas or electric residential utility rate for qualified low-income customers, provided the discount is 20% of standard residential distribution rates. This permits low-income customers to receive utility distribution services at a lower cost. A utility offering a discounted low-income rate is responsible for annually determining customer eligibility in cooperation with the Department of Health and Social Services. The Public Service Commission must review any discount rate approved under this Act every five years to determine if the discount rate should be re-authorized.

Current Bill Text

Read the full stored bill text
Legislation Document

SPONSOR:

Rep. Heffernan & Rep. Minor-Brown & Rep. Griffith & Rep. Bush & Sen. Hansen & Sen. Paradee

Reps. Cooke, Morrison, Neal, Ross Levin, Snyder-Hall, Burns, Lambert, Chukwuocha; Sens. Cruce, Hoffner

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 116

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITY RATES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 1, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 303. Unjust or unreasonable rates and preferences; change in fuel adjustment rate; economic development credit for qualifying corporations.

(a)

No

Except as set forth in subsection (e) of this section, a

public utility

shall

may not

make, i

mpose

impose,

or exact any unjust or unreasonable or unduly preferential or unjustly discriminatory individual or joint rate for any product or service supplied or rendered by it within the State, or adopt, maintain or enforce any regulation, practice or measurement which is unjust, unreasonable, unduly preferential or unjustly discriminatory or otherwise in violation of law, or make, or give, directly or indirectly, any undue or unreasonable preference or advantage to any person or corporation or to any particular description of traffic, in any respect whatsoever.

(e) (1) The Commission may authorize an electric or natural gas public utility to establish an individual or joint rate for any product supplied or service rendered within the State for the purpose of ensuring basic utility service for the State’s low-income residential customers where prior to authorizing such individual or joint rate, the Commission finds all of the following:

a. That such rate is in the public interest.

b. That such rate provides a 20% discount from standard residential distribution costs.

(2) a. An electric or natural gas public utility approved for a low-income rate under this subsection must include information about the rate in a bill insert.

b. Cost recovery for a low-income rate must be included in the line item for the existing low-income program fund described in §1014(b) of this title.

(3) Eligibility for a low-income rate under this section will be determined annually as follows:

a. A participating electric or natural gas public utility will submit the names and other required personal identifying information of applicants for the low-income residential rate to the Department of Health and Social Services (DHSS).

b. DHSS will notify the participating electric or natural gas utility that an applicant is eligible for the low-income rate if the applicant is a participant in any of the following programs or a means-tested assistance program with similar eligibility requirements:

1. Medicaid.

2. Low Income Home Energy Assistance Program.

3. Supplemental Nutrition Assistance Program.

4. Weatherization Assistance Program.

5. Temporary Assistance for Needy Families.

(4) An electric or natural gas utility that offers a low-income residential rate must provide customers who apply for that rate with information

and referrals to available energy efficiency programs such as those offered through Energize Delaware.

(5) The Commission must review a discount rate authorized under paragraph (e)(1) of this section every 5 years and determine whether such rate should be re-authorized.

SYNOPSIS

This Act provides the Public Service Commission with the flexibility to consider and approve a discounted gas or electric residential utility rate for qualified low-income customers, provided the discount is 20% of standard residential distribution rates. This permits low-income customers to receive utility distribution services at a lower cost. A utility offering a discounted low-income rate is responsible for annually determining customer eligibility in cooperation with the Department of Health and Social Services. The Public Service Commission must review any discount rate approved under this Act every five years to determine if the discount rate should be re-authorized.