SJR 3 — DIRECTING ALL ELECTRIC PUBLIC UTILITIES IN DELAWARE TO PARTICIPATE IN A STUDY TO BE UNDERTAKEN BY THE DELAWARE SUSTAINABLE ENERGY UTILITY TO ASSESS AND ANALYZE THE COSTS AND BENEFITS OF THE ADOPTION OF ENERGY STORAGE SYSTEMS IN DELAWARE, AND DIRECTING THE DELAWARE SUSTAINABLE ENERGY UTILITY TO CONDUCT A PILOT PROGRAM WITH THE PARTICIPATION AND COOPERATION OF CERTAIN ELECTRIC UTILITIES TO DEVELOP AND DEPLOY PILOT PROJECTS INVOLVING BATTERY STORAGE SYSTEMS IN DELAWARE.

Hansen DELAWARE& STATERep. SENATE 153rd GENERAL ASSEMBLY SENATE AMENDMENT NO.

2Burns TOSens. SENATE JOINT RESOLUTION NO.

3Hoffner, AMENDHuxtable, SenateLockman, JointPettyjohn, ResolutionRichardson, No.Seigfried, Sokola, Walsh, Wilson;

3,Reps. on lines 67 through 69, by deleting the following:

“PublicLambert, ServiceMorrison, Commission-regulatedNeal, utilitiesSnyder-Hall shallDELAWARE beSTATE entitledSENATE to153rd recoverGENERAL allASSEMBLY reasonableSENATE costsJOINT associatedRESOLUTION withNO. the design, deployment, and operation of these pilot projects, including administrative and Information Technology and Operational Technology systems expenses, less any funding received from the DESEU.”.

FURTHER3 AMENDDIRECTING SenateALL JointELECTRIC ResolutionPUBLIC No.UTILITIES IN DELAWARE TO PARTICIPATE IN A STUDY TO BE UNDERTAKEN BY THE DELAWARE SUSTAINABLE ENERGY UTILITY TO ASSESS AND ANALYZE THE COSTS AND BENEFITS OF THE ADOPTION OF ENERGY STORAGE SYSTEMS IN DELAWARE, AND DIRECTING THE DELAWARE SUSTAINABLE ENERGY UTILITY TO CONDUCT A PILOT PROGRAM WITH THE PARTICIPATION AND COOPERATION OF CERTAIN ELECTRIC UTILITIES TO DEVELOP AND DEPLOY PILOT PROJECTS INVOLVING BATTERY STORAGE SYSTEMS IN DELAWARE.

3,WHEREAS, onan lineEnergy 67,Storage System is a technological device or group of devices that store energy generated from various sources, like solar or wind power, so it can be used later when needed, essentially acting as a buffer to balance electricity supply and demand by insertingstoring theexcess followingenergy afterduring “hostingpeak capacityproduction improvements.”:periods and releasing it during high demand times;

“Delmarvaand PowerWHEREAS, &Energy LightStorage CompanySystems willprovide developseveral itsbenefits batteryfor storageelectric pilotgrids, projectincluding: within the scope of the funding received from the DESEU and any available grant funding.”.

SYNOPSISgrid Thisstabilization amendmentby deletesmanaging peak demand, providing backup power during outages, reducing electricity costs by storing energy during low demand periods, and overall enhancing grid resilience, allowing for more efficient and reliable power delivery by adjusting supply to meet demand fluctuations, and enabling the provisiongrid into Senatewithstand Jointperiodic Resolutionshocks No.and stressors;

3and thatWHEREAS, allowsEnergy PublicStorage ServiceSystems Commission-can regulatedprovide utilities,substantial whichcost-savings include Delmarva Power & Light Company, to recovercommercial alland reasonableindustrial costselectricity associatedcustomers withwho thecan design,deploy deployment,on-site andenergy operationstorage ofto thereduce pilottheir projectselectricity involvingdemand batteryand storageassociated systems,demand includingcharges, administrativewhich andare Informationgenerally Technologybased andon Operationaltheir Technologyhighest systemsobserved expenses,levels lessof anyelectricity fundingconsumption receivedduring frompeak thedemand DESEU.periods;

Furthermore,and theWHEREAS, amendmentEnergy requiresStorage DelmarvaSystems Powerresult &in Lightsavings Company to developresidential itselectricity batterycustomers storageby pilotflattening projectelectricity withoutdemand passingand onthereby thereducing costspeak toelectricity ratepayers,demand andcharges, insteadin mustaddition relyto entirelybenefitting upon the fundingsupply receivedof fromelectricity in the DESEUPJM andtransmission anyregion, availableto grantwhich funding.Delaware belongs;

and WHEREAS, localized pockets of increasing electricity demand sometimes require electric utilities to upgrade existing or build new, expensive substations, and power transmission and distribution lines.

Energy Storage Systems at strategic locations on the grid can help utilities to manage growing electricity demand at lower cost than upgrading or expanding electric grid infrastructure, resulting in savings to electricity customers;

and WHEREAS, Energy Storage Systems provide greater and more effective use of intermittent solar and wind energy resources.

Pairing or co-locating an on-grid Energy Storage System with solar and wind energy power generators allow them to respond to supply requests from electric grid operators when direct generation from solar and wind resources is not SD :

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03/21/2025 11:40 AM available or limited.

Alternatively, an Energy Storage System can help solar and wind power plants avoid reducing or curtailing generation when the availability of those resources exceeds electricity demand or power transmission line capacity or as required by grid operators;

and WHEREAS, Energy StorageSystems commonly involve the use of batteries, and, more recently, hydrogen, but can also involve technologies like compressed airor pumped hydro storage;

and WHEREAS, utility-scale battery energy storagesystems have been growing quickly as a source of electricpowercapacity in the United States in recent years.

Inthe firstseven months of 2024, operators added 5 gigawatts (GW) of capacity to the U.S.

electric power grid.

In 2010, only4megawatts (MW) of utility scale battery energy storagewere added in the United States.

In July 2024, more than 20.7 GWof battery storagecapacity was available inthe United States;and WHEREAS, the construction of Energy StorageSystems in Delaware will promote economic developmentby providing a safer andmore reliable electricitysupply to Delaware businesses and residents, thereby increasing economic growth and spurring job creation.

NOW, THEREFORE:

BE IT RESOLVED by the Senate and the House of Representatives of the 153rd General Assembly of the State of Delaware, with the approval of the Governor, that the Delaware Sustainable Energy Utility (“DESEU”) is directed to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter.

All electric public utilities in Delaware shall participate in and cooperate with the DESEU study.

BE IT FURTHER RESOLVED that in the design and execution of the Energy Storage System study, the DESEU will work with the State Energy Office, the Delaware Public Service Commission, the Division of the Public Advocate, experts at the University of Delaware, the electric public utilities in Delaware, including the Delaware Municipal Electric Corporation and the Delaware Electric Cooperative, and other interested stakeholders.

BE IT FURTHER RESOLVED that the feasibility study shall include, but is not limited to:

regulatory issues, the potential value of battery storage for demand reduction, the use of battery storage to avoid or defer investments in distribution and transmission infrastructure, and the incremental benefits of storage when paired with renewable energy systems.

The study shall also identify grid service value streams provided by battery storage systems, including local peak demand reduction, resilience, and voltage stabilization, with transparent methodologies for quantification.

The DESEU study shall also explore, among other related topics, the following:

a) the use of energy storage, both in front of and behind the meter, b) the value of storage to the electric grid, c) where storage may best be placed, for example at transmission or distribution points, d) any land use, environmental, and community impact considerations associated with Energy Storage SD :

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03/21/2025 11:40 AM Systems, e) the legal issues that may need to be addressed in accommodating Energy Storage Systems in communities, f) making the best use of energy storage, g) competitive procurement under different ownership frameworks, h) energy storage credits, i) market-based incentives and mechanisms to assure broad participation of all demographic and income groups, and j) any other mechanism that the DESEU determines is appropriate to study the adoption of beneficial, cost- effective Energy Storage Systems in the State.

BE IT FURTHER RESOLVED that each of the electric utilities engaged in the DESEU study are encouraged to develop and implement a customer outreach program to raise awareness of battery storage benefits and incentives.

BE IT FURTHER RESOLVED that the DESEU shall work with Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to conduct a pilot program whereby each of these entities develop and deploy at least one pilot project involving battery storage systems.

BE IT FURTHER RESOLVED that the DESEU will provide guidance and a level of funding, in an amount to be determined by the DESEU in its discretion, to Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, and the Delaware Electric Cooperative, to develop and deploy each of the projects involving battery storage systems.