DOVER – Building on previous efforts to address rising energy prices, the House passed legislation Tuesday aimed at making energy bills more affordable for Delawareans.
Sponsored by Rep. Debra Heffernan, Sen. Trey Paradee, and Sen. Stephanie Hansen,House Substitute 2 for House Bill 116 would give the Delaware Public Service Commission the ability to approve lower gas and electric rates for low-income households.
“This past winter made it clear just how vulnerable so many households are to rising energy costs. And with PJM, our regional grid operator, warning that rates could jump as much as 30% this summer, the pressure on families is only growing,” said Rep. Debra Heffernan.
“I’m hopeful that HB 116, along with the other energy-focused bills we’ve introduced this session, will help make energy more affordable in the long-term and provide the stability and relief our most vulnerable neighbors need in the near future.”
Under HB 116 (S), this discounted rate, if approved by the Public Service Commission, would be available to people who qualify for the Low Income Home Energy Assistance Program (LIHEAP) and other means-tested low-income programs. The discounted rates could lower the delivery portion of gas and electric bills by 20%, making utility bills more affordable for families struggling to keep up with rising costs.
LIHEAP is a federally funded program that helps low income Delawareans cover the cost of energy-related expenses. Income eligibility for LIHEAP is defined as 60% of state median income (SMI), which for a four-person household would be an annual income of less than $72,577.
“An overwhelming number of Delaware ratepayers have been burdened by energy costs over the last few months,” said Sen. Trey Paradee.
“These expenses are disproportionately harmful to our low-income neighbors who are already struggling to make ends meet while living expenses continue to increase. This legislation aims to provide relief to folks who need it most, and I look forward to introducing it to the Senate.”
The cost of providing these discounts to low-income customers and the minimal administrative costs to run the program would be covered by a small surcharge of less than 65 cents per month on customer bills.
“I thank Rep. Heffernan for bringing forward this legislation, which complements the many bills we have filed this year to bring energy costs under control,” said Sen. Stephanie Hansen.
“This bill provides a safety net for our most vulnerable neighbors.”
HB 116(S) now heads to the Senate for consideration.
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