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Committee advances bill letting Delaware Electric Cooperative decline very large loads to protect members
Summary
The committee released SB276, which would allow the Delaware Electric Cooperative to refuse to serve very large customers (50 MW+) in its service territory and require those customers to procure power in the market; sponsor and utility representatives said the change protects mostly residential members from increased costs.
The House Natural Resources and Energy Committee released Senate Bill 276 after testimony from representatives of the Delaware Electric Cooperative (DEC), which requested the change.
Sponsor and counsel said the cooperative’s membership is about 80% residential; the cooperative fears that taking on large industrial or data-center loads could force it to procure power on the PJM wholesale market and raise costs for existing members. Jamie Notar, an attorney representing DEC, described SB276 as a tool the cooperative can use to manage load growth "in a responsible way to protect our existing members." He and other witnesses said the bill would not prevent a cooperative member from locating in the territory; it would give DEC the option to require a large load to obtain supply from third-party suppliers or to build dedicated generation.
Some committee members used the opportunity to ask larger questions about the state’s long-term generation strategy and whether limiting the cooperative’s obligation to serve could constrain economic opportunities. The sponsor said the bill is tailored to the cooperative’s statutory context and that Delmarva Power and municipal utilities operate under different supplier frameworks.
There were no in-person or virtual public commenters on this bill. Representative Will Bush moved to release SB276; Representative Bill Carson seconded and the committee’s roll-call vote carried.
Vote and procedural note: Motion to release SB276 made by Representative Will Bush; seconded by Representative Bill Carson. Roll-call vote carried (yes: 10; no: 0; abstain: 0; absent: 2).
