DelawareDelaware regulators check whether utility spending behind rates was reasonable
Since January 1, 2026, Delaware utilities must show that the costs behind their rates were reasonable when they spent the money.
What it does
When regulators review utility rates, utilities must show they spent money reasonably. Regulators may leave all or part of an unreasonable cost out of rates.
Argument forCustomers could avoid paying for unreasonable spending because regulators may leave all or part of those costs out of rates.
Argument againstUtilities might recover less for projects if regulators find some spending unreasonable, making future cost recovery harder to predict.
More detail
Public utilities must show that their rates cover only costs they spent reasonably. This applies when Delaware regulators review a public utility's proposed or existing rates. Regulators judge each cost based on what the utility knew or reasonably should have known when it spent the money. Regulators may leave all or part of an unreasonable cost out of rates. This rule took effect January 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Jul 16Signed by Governor Matt MeyerBecame Law
- Jun 26Passed By House. Votes: 39 YES 1 ABSENT 1 VACANTPassed House
- Vote recorded Passage. Result: pass.Lower
- Apr 9Reported Out of Committee (Natural Resources & Energy) in House with 9 On Its Merits, 1 UnfavorableMinor
- Mar 25Assigned to Natural Resources & Energy Committee in HouseMinor
- Mar 20Passed By Senate. Votes: 19 YES 2 ABSENTPassed Senate
- Vote recorded Passage. Result: pass.Upper
- Mar 12Reported Out of Committee (Environment, Energy & Transportation) in Senate with 5 FavorableMinor
- Feb 21Introduced and Assigned to Environment, Energy & Transportation Committee in SenateIntroduced
Environment & EnergyConsumer Protection