"Emerging predicament for low-income Delaware residents: Rising utility bills during the summer heat drive demand for emergency assistance"
Delaware residents are facing a rise in energy bills due to increasing electricity rates, with Delmarva Power customers already experiencing average increases and further hikes expected in 2026. The challenges include slow grid interconnection processes and the lack of renewable energy sources, leading to rising costs.
To address these issues, several solutions are underway:
- Customer Assistance Funds and Relief Programs: Delmarva Power has established a $4.5 million assistance fund for limited- and moderate-income households, providing $300 bill credits to qualifying customers. The state adds $1.5 million to support about 20,000 ratepayers. Other options like budget billing and deferred payments are also offered. The Delaware Energy Fund, which helps people meeting federal poverty income guidelines, is administered by Sustainable Energy Utility (Energize Delaware), and receives funding to expand assistance programs.
- Energy Efficiency Rebates under the Inflation Reduction Act (IRA): Delaware has received $65.8 million allocated towards two programs awaiting final DOE approval. The HOMES program targets whole-house energy efficiency improvements, while the HEAR program focuses on rebates for electric appliances and other efficiency upgrades, prioritizing low-to-moderate income households. These programs aim to reduce energy consumption and long-term utility bills by improving home energy efficiency.
- Infrastructure and Regulatory Improvements: Efforts are underway to streamline federal permitting and environmental reviews to accelerate grid modernization and reliability projects. Faster permitting can help reduce outages and prevent further cost increases tied to infrastructure delays.
Michael Smyjewski, a retired Navy veteran living off Social Security and a small Navy pension, experienced a six-week power outage due to Delmarva Power shutting off his home's power in late May. He had to discard hundreds of dollars worth of spoiled food and had to pay a $600 security deposit to reconnect his service, which will add an extra $100 a month to his future bills for the next six months. However, he received crisis funding from the Delaware Energy Assistance Program operated by Catholic Charities of the Diocese of Wilmington.
The passage of a package of legislation by state lawmakers aims to provide greater scrutiny over rate increases, prohibit the use of customer funds for unregulated activities, require public votes of the PJM Interconnection Regional Transmission Organization, restrict shutoffs or service terminations, and allow lower gas and electric rates for low-income households. The legislation also calls for more renewable energy sources to be integrated into the grid, addressing the criticism that PJM is not moving fast enough.
In summary, Delaware is tackling rising energy costs through a mix of targeted financial assistance, energy efficiency incentives, and infrastructure modernization efforts, although some programs are still awaiting final implementation. Residents struggling to pay bills can seek help from assistance funds, nonprofit programs like Energize Delaware, and upcoming rebate initiatives. Delmarva Power customers can get up to three payment plans in a rolling 12-month period.
Acknowledging the rise in energy bills, Delaware is prioritizing education-and-self-development for its residents by implementing solutions such as the HOMES program, which offers rebates for whole-house energy efficiency improvements. Additionally, the HOMES program is designed to prioritize low-to-moderate income households, promoting energy savings and reduced long-term utility bills.
