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SB59 • 2025

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

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

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Last action
2025-07-16
Official status
Signed by Governor
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

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

What This Bill Does

  • AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND UTILITY RATES.
  • Public utilities are regulated monopolies.
  • Practically speaking, a public utility has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face.
  • By law, a public utility is authorized the opportunity to earn a reasonable rate of return on the costs it incurs in operating its business.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-07-16 Delaware General Assembly

    Signed by Governor

  2. 2025-06-26 Delaware General Assembly

    Passed By House. Votes: 39 YES 1 ABSENT 1 VACANT

  3. 2025-04-09 Delaware General Assembly

    Reported Out of Committee (Natural Resources & Energy) in House with 9 On Its Merits, 1 Unfavorable

  4. 2025-03-25 Delaware General Assembly

    Assigned to Natural Resources & Energy Committee in House

  5. 2025-03-20 Delaware General Assembly

    Passed By Senate. Votes: 19 YES 2 ABSENT

  6. 2025-03-12 Delaware General Assembly

    Reported Out of Committee (Environment, Energy & Transportation) in Senate with 5 Favorable

  7. 2025-02-21 Delaware General Assembly

    Introduced and Assigned to Environment, Energy & Transportation Committee in Senate

Official Summary Text

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND UTILITY RATES.
Public utilities are regulated monopolies. Practically speaking, a public utility has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face. By law, a public utility is authorized the opportunity to earn a reasonable rate of return on the costs it incurs in operating its business.

Under the current Public Utilities Code, in determining the rates that public utilities may charge customers, the Delaware Public Service Commission must apply the “business judgment rule” standard in deciding which costs may be included in a utility’s rate base. Forty-eight (48) states in the United States apply the “prudence” standard when setting utility rates, not the "business judgement rule" standard that is applied in Delaware. The more costs that are included in rate base, the higher the rates that are charged to utility customers. Under the “business judgment rule” standard, the Public Service Commission may not