Energy decisions should prioritize people and pragmatism

This winter, many Delaware families have seen their electricity bills rise dramatically. While much of the escalation can be traced to cold weather, higher natural gas prices, increased demand and lower supply, some of it is attributable to our state’s energy policies. On that front, consumers and taxpayers can expect to be reaching progressively deeper into their pockets for years to come.

Delaware has a multi-faceted energy plan to make our state net carbon zero, a laudable goal, but one likely to have far-reaching financial implications.

One aspect of this strategy is a law revised in 2021 requiring major electricity utilities to derive an increasing percentage of their power from renewable energy. Currently, 25% of Delaware’s electricity must come from renewables, a rate that will rise annually over the next 10 years, topping out at 40% in 2035.

Officials with PJM Interconnection, a regional organization that manages the flow of electricity across 13 states, have cited this as a point of concern. They note that fossil-fuel power plants have been rapidly retired in recent years, but the new renewable energy facilities that were supposed to take their place have not been built fast enough to fill the deficit, squeezing supply. 

Another component of our energy future is the Delaware Energy Solutions Act of 2024. Signed into law in September, the statute will create a detailed framework for soliciting, considering and potentially approving future offshore wind projects. The statute authorizes the State Energy Office to seek and develop long-term contracts to purchase 800 to 1,200 megawatts of offshore wind electricity.

The impact of the legislation could be considerable. Based on the average generating capacity of an offshore wind turbine (55%), this measure would allow state officials to contract for enough deliverable power to service 460,000 homes – about equal to the total number of housing units in Delaware. According to the International Renewable Energy Agency, offshore wind turbines produce electricity twice as costly as onshore wind and 70% more expensive than photovoltaic solar.

Another law, the Delaware Climate Change Solutions Act of 2023, could impact electricity rates and increase state and local spending. The law commits the state to reduce net greenhouse gas emissions by at least 50% (compared to 2005) by 2030 and to have net-zero emissions by 2050. Delaware's Climate Action Plan serves as the framework to guide all state agencies toward achieving these goals.

While the law does not grant any new regulatory authority, it requires all agencies to take climate change considerations into account when creating new regulations or amending existing ones.

The targets can be achieved by combining emission cuts with offsets, such as new farming and forestry practices. Some of these net reductions will likely be accomplished with new regulations, with the expense borne by those affected. 

The bill also mandates that agencies consider greenhouse reduction goals when buying equipment, performing construction and maintenance, and designing and operating public infrastructure.

More familiar to many Delawareans are the regulations adopted by the Delaware Department of Natural Resources and Environmental Control restricting the sales of new fuel-powered vehicles.

The rules require that starting a year from this fall, 43% of all new cars and light-duty trucks shipped to Delaware dealerships be zero-emission vehicles. That percentage will increase annually to 82% by model year 2032. The regulations prohibit purchasing new fuel-powered vehicles outside the state and registering them here.

The rules were adopted even though more than 94% of 4,426 individual public comments submitted to DNREC as part of the regulatory process opposed the proposal. 

Aside from limiting consumer choice and potentially increasing new car prices, utilities, governments and property owners will need to invest millions of dollars installing a charging infrastructure supporting the transition to vehicle electrification. These costs will include upgrading the transmission network – a cost that regulators generally allow to be passed on to ratepayers.

Holding comfortable majorities in the House and Senate, Democratic lawmakers joined with Gov. John Carney to advance these policies, saying they were needed to battle climate change. However, in a June 2018 opinion column lamenting the lack of pollution controls on out-of-state power plants, the governor stated that "90% of Delaware's air pollution comes from other states." 

The potential for Delaware's policies to affect global warming or climate change is negligible. Our state's 1 million residents constitute about 0.012%, or twelve-thousandths of 1%, of the world population. 

According to the U.S. Energy Information Administration, 36 states have less-expensive residential electricity rates (November 2024). Yet, we have implemented laws and regulations that will pile on additional expenses without any real hope of impacting the Earth’s climate.

Our energy future should be based on sound science and fiscal pragmatism, not just good intentions. It’s that belief that has led our members to oppose many of our current policies.

Our members believe in energy policies that treat citizens and business owners as partners instead of adversaries. Caring for our citizens and recognizing our responsibility to be good stewards of the planet should not be viewed as mutually exclusive goals.