News Stories

As Substituted in the House by HS1 for  HB233 on May 21, 2026 the legislation amends Title 26 of the Delaware Code to address the growing impact of large energy-use facilities, such as data centers, on the electric grid and ratepayers.

The legislation requires regulated electric utilities to establish a separate classification and tariff for large energy use facilities, defined as customers with demand of 20MW or more, primarily engaged in data processing and hosting services. This classification must be distinct from other commercial and industrial customer classes. Under the Act, utilities must design rates that allocate the full or proportional cost of service to these large customers, or directly assign such costs, to prevent cross-subsidization. The rates must mitigate the risk that residential, small business, and other customers bear the financial burden associated with infrastructure expansion.

In reviewing proposed rate structures, the Delaware Commission must evaluate whether the rates (1) avoid imposing increased costs or unwarranted risks on other customers; (2) ensure equitable contributions to grid reliability; (3) support Delaware’s renewable energy and greenhouse gas reduction goals; (4) enable procurement of generation resources aligned with those policy objectives; and (5) satisfy any additional public interest considerations.

The bill would take effect upon enactment and requires utilities to file applications establishing the required rate structures within 180 days.