In recent weeks, Delaware residents have expressed growing frustration over rising utility bills, with many taking to social media, particularly First State Update’s Facebook page, to voice concerns and speculate about possible causes. Among the theories circulating is that Senate Bill 33, signed into law in 2021, may be driving the higher costs due to its emphasis on renewable energy requirements.
The speculation gained further traction when Delaware State Representative Eric Morrison of Middletown denied that renewable energy played a part in the rate hike. In a letter to his constituents, Morrison said “It is also important to note that renewable energy or related legislation is not mentioned in any of the communications from Delmarva or the Public Advocate as a driver of costs.”
To address public concerns, First State Update reached out to Delmarva Power for clarification on the matter. The company explained that the primary factor behind the recent spike in energy bills is related to extreme winter weather. “Due to the cold temperatures we have experienced over the last two months, we know our customers used 40 percent more electricity and 200 percent more natural gas in December compared to November on average,” Delmarva spokesperson Zach Chizar stated. “With January’s weather patterns continuing, we expect the impact on usage to be even greater.”
Delmarva Power emphasized that this trend of higher energy consumption during colder months is the leading cause of increased bills. However, the company did acknowledge that renewable energy mandates do play a role in the overall cost of energy. Under Delaware law, Delmarva Power is required to meet the state’s renewable energy standards by integrating clean energy sources, such as solar and wind, into the energy delivered to customers. By 2035, the company must ensure that 40 percent of its total energy supply comes from renewable sources added Chizar.
One challenge in meeting these renewable energy targets is the cost associated with renewable energy credits (RECs). These credits serve as proof that energy has been generated from renewable sources. At present, renewable energy credits are not available in Delaware according to Chizar. He explained that many states within PJM’s regional power grid have also increased their renewable energy targets, leading to higher demand for these credits. The result has been rising prices for RECs, which can contribute to overall energy costs.