DE SB 59
enactedAN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO PUBLIC UTILITIES AND UTILITY RATES.
Delaware · 2025-2026 Regular Session (153rd General Assembly) · upper
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Quick answers
Did DE SB 59 pass?
Yes. DE SB 59 has been enacted into law. Latest recorded action (2025-07-16): Signed by Governor
What is DE SB 59 about?
Public utilities are regulated monopolies. Practically speaking, a public utility has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face. By law, a public utility is authorized the opportunity to earn a reasonable rate of return on the costs it incurs in operating its business. Under the current Public Utilities Code, in determining the rates that public utilities may charge customers, the Delaware Public Service Commission must apply the “business judgment rule” standard in deciding which costs may be included in a utility’s rate base. Forty-eight (48) states in the United States apply the “prudence” standard when setting utility rates, not the "business judgement rule" standard that is applied in Delaware. The more costs that are included in rate base, the higher the rates that are charged to utility customers. Under the “business judgment rule” standard, the Public Service Commission may not disallow the inclusion of a cost in rate base, even though the cost was incurred imprudently. For example, a utility may decide to expand the size of its facilities, but overbuilds those facilities at a cost of $3 million, even though a smaller $1 million expansion would be adequate to serve its customers and anticipated future growth. Under the business judgment rule, the Public Service Commission is not able to deny recovery of any part of the cost of the expanded facility and it will be included in rate base. Consequently, customer utility bills have been increasing and could continue to increase significantly. Amending the Public Utility Code so that the “prudence” standard applies, would give the Public Service Commission the ability to deny, in whole or in part, certain expenses and costs, which can lead to less frequent and less impactful rate increases.
Who sponsors DE SB 59?
Eric Morrison, Kerri Evelyn Harris, Mara Gorman and 24 others are the primary sponsors of DE SB 59, joined by 15 cosponsors.
Description
Public utilities are regulated monopolies. Practically speaking, a public utility has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face. By law, a public utility is authorized the opportunity to earn a reasonable rate of return on the costs it incurs in operating its business. Under the current Public Utilities Code, in determining the rates that public utilities may charge customers, the Delaware Public Service Commission must apply the “business judgment rule” standard in deciding which costs may be included in a utility’s rate base. Forty-eight (48) states in the United States apply the “prudence” standard when setting utility rates, not the "business judgement rule" standard that is applied in Delaware. The more costs that are included in rate base, the higher the rates that are charged to utility customers. Under the “business judgment rule” standard, the Public Service Commission may not disallow the inclusion of a cost in rate base, even though the cost was incurred imprudently. For example, a utility may decide to expand the size of its facilities, but overbuilds those facilities at a cost of $3 million, even though a smaller $1 million expansion would be adequate to serve its customers and anticipated future growth. Under the business judgment rule, the Public Service Commission is not able to deny recovery of any part of the cost of the expanded facility and it will be included in rate base. Consequently, customer utility bills have been increasing and could continue to increase significantly. Amending the Public Utility Code so that the “prudence” standard applies, would give the Public Service Commission the ability to deny, in whole or in part, certain expenses and costs, which can lead to less frequent and less impactful rate increases.
- Introduced
- 2025-02-21
- Latest action
- 2025-07-16 — Signed by Governor
- Bill type
- bill
- Last updated
- —
Sponsors
- Eric Morrisonprimary
- Kerri Evelyn Harrisprimary
- Mara Gormanprimary
- William J. Carsonprimary
- William Bushprimary
- Bryant L. Richardsonprimary
- David P. Sokolaprimary
- Ray Seigfriedprimary
- Marie Pinkneyprimary
- Josue O Ortegaprimary
- Stell Parker Selbyprimary
- Brian Pettyjohnprimary
- Nicole Pooreprimary
- David L. Wilsonprimary
- Franklin D. Cookeprimary
- Spiros Mantzavinosprimary
- Claire Snyder-Hallprimary
- Bryan Townsendprimary
- Laura V. Sturgeonprimary
- Russell Huxtableprimary
- Stephanie L. Hansenprimary
- Kyra L. Hoffnerprimary
- Eric Bucksonprimary
- Debra Heffernanprimary
- Sophie Phillipsprimary
- Krista Griffithprimary
- Kimberly Williamsprimary
- Gerald W. Hockercosponsor
- S. Elizabeth Lockmancosponsor
- Brian Pettyjohncosponsor
- Marie Pinkneycosponsor
- Ray Seigfriedcosponsor
- David P. Sokolacosponsor
- Frank Burnscosponsor
- William Bushcosponsor
- William J. Carsoncosponsor
- Mara Gormancosponsor
- Kerri Evelyn Harriscosponsor
- Larry Lambertcosponsor
- Eric Morrisoncosponsor
- DeShanna U Nealcosponsor
- Claire Snyder-Hallcosponsor
Committees
Not provided by source.
Action timeline
Newest first
2025-07-16
Signed by Governor
executive-signature
2025-06-26
Passed By House. Votes: 39 YES 1 ABSENT 1 VACANT
passage
2025-04-09
Reported Out of Committee (Natural Resources & Energy) in House with 9 On Its Merits, 1 Unfavorable
committee-passage,committee-passage-favorable,committee-passage-unfavorable
2025-03-25
Assigned to Natural Resources & Energy Committee in House
introduction,referral-committee
2025-03-20
Passed By Senate. Votes: 19 YES 2 ABSENT
passage
2025-03-12
Reported Out of Committee (Environment, Energy & Transportation) in Senate with 5 Favorable
committee-passage,committee-passage-favorable
2025-02-21
Introduced and Assigned to Environment, Energy & Transportation Committee in Senate
introduction,referral-committee
Versions
- Bill TextCompare
Documents
Votes
SM
2025-03-20 · pass · 19-0
Member-level votes (21)
- Darius J. Brown: yes
- Eric Buckson: yes
- Daniel Cruce: other
- Stephanie L. Hansen: yes
- Gerald W. Hocker: yes
- Kyra L. Hoffner: yes
- Russell Huxtable: yes
- Dave G. Lawson: other
- S. Elizabeth Lockman: yes
- Spiros Mantzavinos: yes
- Trey Paradee: yes
- Brian Pettyjohn: yes
- Marie Pinkney: yes
- Nicole Poore: yes
- Bryant L. Richardson: yes
- Ray Seigfried: yes
- David P. Sokola: yes
- Laura V. Sturgeon: yes
- Bryan Townsend: yes
- John "Jack" Walsh: yes
- David L. Wilson: yes
SM
2025-06-26 · pass · 39-0
Member-level votes (40)
- Stephanie T. Bolden: yes
- Frank Burns: yes
- William Bush: yes
- William J. Carson: yes
- Nnamdi O. Chukwuocha: yes
- Richard G. Collins: yes
- Franklin D. Cooke: yes
- Daniel B. Short: yes
- Timothy D. Dukes: yes
- Mara Gorman: yes
- Ronald E. Gray: yes
- Krista Griffith: yes
- Kerri Evelyn Harris: yes
- Debra Heffernan: yes
- Kevin S Hensley: yes
- Jeff Hilovsky: yes
- Valerie Jones Giltner: yes
- Kendra Johnson: yes
- Kimberly Williams: yes
- Kamela T Smith: yes
- Larry Lambert: yes
- Sean M. Lynn: yes
- Michael F. Smith: yes
- Melissa Minor-Brown: yes
- Shannon Morris: yes
- Eric Morrison: yes
- DeShanna U Neal: yes
- Josue O Ortega: yes
- Edward S. Osienski: yes
- Sophie Phillips: other
- Charles S Postles Jr.: yes
- Cyndie Romer: yes
- Melanie Ross Levin: yes
- Sherae'a Moore: yes
- Bryan W. Shupe: yes
- Claire Snyder-Hall: yes
- Jeffrey N. Spiegelman: yes
- Jesse R. Vanderwende: yes
- Madinah Wilson-Anton: yes
- Lyndon D. Yearick: yes
Related bills
No related bills recorded for this bill.
Official source
Attribution
Data from openstates_api_sync, retrieved 2026-10-24T03:44:30.742622Z
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