Bill Commons

DE SB 59

enacted

AN 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

  1. 2025-07-16

    Signed by Governor

    executive-signature

  2. 2025-06-26

    Passed By House. Votes: 39 YES 1 ABSENT 1 VACANT

    passage

  3. 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

  4. 2025-03-25

    Assigned to Natural Resources & Energy Committee in House

    introduction,referral-committee

  5. 2025-03-20

    Passed By Senate. Votes: 19 YES 2 ABSENT

    passage

  6. 2025-03-12

    Reported Out of Committee (Environment, Energy & Transportation) in Senate with 5 Favorable

    committee-passage,committee-passage-favorable

  7. 2025-02-21

    Introduced and Assigned to Environment, Energy & Transportation Committee in Senate

    introduction,referral-committee

Versions

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

Inspect retained evidence for changes recorded after evidence tracking began:

Session-wide evidence can include changes to other bills:

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