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This week in Delaware, key discussions centered on regulating large energy consumers, particularly data centers, as well as critical funding and personnel issues for fire and emergency services and state agencies.
- Regulation of Large Energy Loads and Data Centers: The Delaware Public Service Commission held a public comment session on February 26 regarding docket number 25-0826, concerning a large load tariff for Delmarva Power and Light Company. Public comments raised significant concerns about the proposed GS-LD service class, arguing it was insufficient to protect ratepayers from increased electricity costs, stranded asset risks, and the environmental impact of large data centers. Speakers highlighted that other states are reconsidering tax incentives for data centers due to energy usage and development costs, with some imposing moratoriums or requiring 100% renewable energy. Critics called for more robust tariffs including minimum contract terms, early exit fees, infrastructure guarantees, and contributions to public benefit programs and a grid improvement fund. There was strong support for modeling legislation after HB 233 to ensure large energy users pay their fair share and contribute to clean energy goals. The Senate Environment, Energy & Transportation & House Natural Resources & Energy Joint Committee also met on February 27 to discuss the implications of large energy load usage from data centers on Delaware’s electric grid, noting a high risk of electricity supply shortfalls by 2026 and PJM’s strategies to manage load growth.
- Fire and Emergency Services Support and Funding: During the Joint Finance Committee Meeting on February 26, the Delaware Volunteer Firefighters Association presented three recommendations. These included a request for an annual appropriation of $500,000 to ensure full compliance with Regulation 709, which establishes mandatory training standards for firefighters. They also sought modernization and an increase in the rescue tool grant from $7,500 to $20,000 on a 10-year rotation, and a one-time payment to fire departments to help balance budgets. Additionally, concerns were raised about job classifications and salary disparities for fire commission employees, with a call for reassessment and potential reclassification to caseworker duties for additional compensation. The importance of mental health wellness programs for fire and EMS agencies was also emphasized.
- Department of Transportation (DelDOT) Operations and Health and Social Services (DHSS) Budget: The Joint Finance Committee also received updates on DelDOT and DHSS. DelDOT reported a 10% vacancy rate, down 2% from the previous year’s 12%. The department also acknowledged its team’s significant efforts in addressing over 600 locations with downed trees following a recent storm and announced the reopening of the Wilmington DMV on March 10th after a safety incident. For DHSS, budget requests included $128.5 million recommended for Medicaid funding adjustments due to federal matching assistance percentage (FMAP) shifts and Medicare premium increases, and an additional $1,587,400 for the Delaware Healthy Children Program to address projected growth. A decrease in spending authority for the Delaware Prescription Assistance Program was noted due to declining tobacco settlement funds. The committee also discussed childcare funding, set at $76 million for FY26 and increasing to $102 million for FY27, and the need for flexible funding for lead remediation.
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