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Delaware senators consider replacing 'business judgment' rule with 'prudence' for utility rate reviews
Summary
Sen. Stephanie Hanson introduced Senate Bill 59 to change the Public Service Commission's standard of review from the business judgment rule to a prudent standard, prompting testimony from utilities, consumer advocates and the public about the potential effects on rates, reliability and oversight.
Senator Stephanie Hanson, chair of the Senate Environment, Energy, and Transportation Committee, opened discussion of Senate Bill 59, saying the bill would change Delaware’s standard of judicial review in utility rate cases from the business judgment rule to the prudent standard. Hanson said the change responds to public concern about fast-rising utility bills and would allow the Delaware Public Service Commission to take a more critical look at costs utilities seek to recover from customers.
Hanson said Delaware is an outlier and that the business judgment rule ‘‘binds [the PSC] to approve [rate increases] unless they can see that it was…
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