HB 233 — AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO LARGE ENERGY USE FACILITIES.

“(5)and SpecifyWHEREAS, that,numerous forleading purposesartificial ofintelligence calculatingcompanies itshave retailsigned servicea charges“Ratepayer andProtection forPledge” allocatingthat, among theother retailthings, customerspledges ofthat thedata utilitycenter thosecompanies transmission“will chargesbuild, paidbring, byor buy the utilitynew ingeneration accordanceresources withand federalelectricity lawto andsatisfy tariffstheir onnew fileenergy withdemands, paying the Federalfull Energycost Regulatoryof Commission,those theresources… large[and] energy[w]here usepossible, facility’sthese annualcompanies will also add more capacity peakthat loadserves contributionthe willbroader bepublic deemedby increasing supply,” and data center companies “will pay for all new power delivery infrastructure upgrades required to haveservice beentheir atdata leastcenters, 90%including ofadequate thenetwork contractupgrade capacitycosts asto adjustedensure bythat thethese applicableexpenses lineare lossnot factorpassed andon to the largeordinary energyhousehold,” useand facility’sthat annualdata networkcenter peakcompanies loadwill contributionenter willinto belarge deemedload totariff haverate beenstructures atand least“will 90%pay ofthese rates for the contractpower capacityand asrelated adjustedinfrastructure bythat theare applicablebrought lineonline lossto factor.”.service their data centers, whether they use the electricity or not”;

FURTHERand AMENDHD House: Substitute No.

1KL for: House Bill No.

233DS onPage line2 122of by13 deletingReleased: “(which cannot exceed 5 years)” as it appears therein.

FURTHER05/21/2026 AMEND12:05 HousePM SubstituteWHEREAS, No.data centers proposed in Delaware would almost double the current peak electricity demand of the entire State, straining our grid, necessitating substantial transmission infrastructure upgrades, and shifting electricity supply and demand;

1and WHEREAS, a 2026 study of the impacts on electricity costs in Delaware found that 2,400 MW of data center load growth in Delaware (consistent in total size to a project already being studied by Delmarva Power & Light) could increase locational marginal prices for Houseelectricity Billby No.an average of 82% above the baseline by 2029, with differing regional impacts across the State;

233and onWHEREAS, linea 134separate by2026 deletingstudy “Commission.”also asfound itsignificant appearsreliability thereinimpacts andfrom inserting2,400 inMW lieuof thereofdata “Commission,center Commission-regulatedload electricgrowth utility,in orDelaware; directed by the federal regional transmission system operator.”.

FURTHERand AMENDWHEREAS, Househyperscale Substitutedata No.center growth also poses challenges to meeting Delaware’s energy and climate goals;

1and forWHEREAS, HouseDelaware Billwelcomes No.developers of large energy use facilities that commit to and develop their projects consistent with the “Ratepayer Protection Pledge” and the Statement of Principles, and the State and responsible developers will benefit from the regulatory certainty of a framework that enables developers to fulfill pledges that costs related to large load growth will not be shifted onto other customers.

233NOW, onTHEREFORE: line 135 by inserting “or” between “bonding” and “letters” as they appear therein.

FURTHERBE AMENDIT HouseENACTED SubstituteBY No.THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

1Section for1. House Bill No.

233Amend onSubchapter I, Chapter 1, Title 26 of the Delaware Code by deletingmaking linesdeletions 148as throughshown 156by strike through and insertinginsertions inas lieushown thereofby theunderline following:as follows and redesignating accordingly:

“(4)§ The102. need for and impact of the project proposed by the large energy use facility on the safe, adequate, and reliable operation or delivery of electric supply services.

ItDefinitions. shall be considered a positive factor, but not required, in evaluating an ESA if a large energy use facility constructs or causes the construction of new generation, where such new generation:

As used in this title, unless the context otherwise requires:

( ) a.

“Large energy use facility” means a facility that does either or both of the following:

1.

Uses or is projected to use a monthly maximum demand of 50 megawatts or greater at a load factor of 85% or greater.

2.

Uses a monthly maximum instantaneous demand of 100 megawatts or greater.

b.

Multiple facilities may be aggregated and treated as a large energy use facility for the purposes of this definition based on close physical proximity, common ownership or control, or ownership or control through an affiliated company, sharing of local electrical infrastructure, and reliability risks to the electric system because of their size, proximity, and operational characteristics.

HD :

KL :

DS Page 3 of 13 Released:

05/21/2026 12:05 PM 77 ( ) “Load ramp period” means the period of time from commencement of service until a large energy use facility’s demand reaches the full contract capacity.

( ) “Contract capacity” means the amount of monthly peak load requirements that is mutually agreed to by a Commission-regulated electric utility and a large energy use facility for each month remaining in a contract term after the load ramp period has ended and for which both of the following apply:

a.

The Commission-regulated electric utility agrees to provide retail electric service subject to the terms and conditions in its tariffs.

b.

The large load customer agrees to purchase service at that load level for the stated term of the contract under the same terms and conditions as those stated in the contract.

Section 2.

Amend Subchapter II, Chapter 1, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 203G.

Approval of Electric Service Agreements for large energy use facilities.

(a) No person or entity may begin operations as a large energy use facility without first obtaining from the Commission the approval of an Electric Service Agreement (“ESA”) and entering into a Transmission Service Agreement (“TSA”) with the Commission-regulated electric utility.

(b) A large energy use facility must negotiate the terms of an ESA and a TSA with a Commission-regulated electric utility and thereafter the Commission-regulated electric utility must submit the ESA and TSA for review and approval by the Commission.

Notwithstanding any other provision of this title, Commission approval is required prior to any interconnection under a large energy user tariff promulgated by a Commission-regulated electric utility under the provisions of § 317 of this title.

(c) It is the intent of the General Assembly that residential retail electric customers and all other industrial and commercial customers, other than large energy use facilities, should not bear the financial costs or risks associated with large energy use facilities interconnecting to the electric system serving the State and that a regulatory framework be established to ensure large energy use facilities enter into agreements to directly assign these costs.

Towards that end, the Commission shall promulgate regulations to govern the tariff applicable to large energy use facilities, and to set forth the minimum protective provisions required to be included in an ESA and a TSA.

The Commission regulations will identify specific form language to be incorporated into all ESAs and TSAs, and such language shall ensure the protections set forth in § 317 of this title.

At minimum, the ESA shall cover the provision of the retail electricity service, including, as applicable, interconnection, cost allocation and obligation, and risk mitigation of stranded or speculative costs and must include all of the following provisions:

HD :

KL :

DS Page 4 of 13 Released:

05/21/2026 12:05 PM (1) Specify the duration of the contract, which must be a minimum of 10 years commencing after load ramp and a minimum of 15 years total including the load ramp period.

(2) Specify the date or estimated date that the Commission-regulated electric utility will begin to provide electricity service.

(3) Obligate the large energy use facility to pay a minimum amount or percentage of distribution charges, which cannot be less than 90% of contract capacity, based on the large energy use facility’s projected electricity usage for the electricity services the Commission-regulated electric utility is contracted to provide for the duration of the contract.

(4) For large energy use facilities that procure electricity from the Commission-regulated electric utility, obligate the large energy use facility to pay a minimum amount or percentage of supply costs, which cannot be less than 90% of contract capacity, based on the large energy use facility’s projected electricity usage for the electricity services the Commission-regulated electric utility is contracted to provide for the duration of the contract.

(5) Specify that the large energy use facility’s annual capacity peak load contribution will be at least 90% of the contract capacity as adjusted by the applicable line loss factor and the large energy use facility’s annual network peak load contribution will be at least 90% of the contract capacity as adjusted by the applicable line loss factor.

(6) Specify the duration of the load ramp period (which cannot exceed 5 years) during which a large energy use facility must reach full forecasted load and specify interim load levels the facility must meet at designated points during this period.

(7) Outline exit procedures that will apply to large energy use facility customers in the event of contract termination.

Such procedures must include at least a 5-year advance notice of termination.

(8) Set exit fees that ensure the large energy use facility makes adequate contributions to offset all unrecovered costs in the event of contract termination.

(9) Require physical and operational readiness measures that facilitate targeted curtailment, including dedicated or otherwise segregable feeders where practicable;

separation of any “critical” load segments behind the meter;

and telemetry and communications capability sufficient for the Commission-regulated electric utility to execute and confirm curtailment actions during emergency operations.

(10) Establish enforceable curtailment and interruptibility obligations during emergencies and other circumstances determined by the Commission.

HD :

KL :

DS Page 5 of 13 Released:

05/21/2026 12:05 PM (11) Require bonding letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees to ensure protection of other customers in the event of bankruptcy, liquidation, or other circumstances that would prevent the large energy use facility from meeting its obligations under the ESA.

(12) Meet any other conditions the Commission may require in the public interest, including the extent to which the large energy use facility uses local labor that is paid a prevailing wage.

(d) In determining whether to approve an ESA, the Commission shall consider all of the following:

(1) Whether the ESA is consistent with regulations promulgated by the Commission governing ESAs.

(2) Whether the ESA, in combination with the underlying tariff, ensures that all applicable costs attributable to the large energy use facility are directly assigned to the large energy use facility.

In making this determination, the Commission shall consider the results of any applicable Incremental Cost Test, as provided for in § 317 of this title.

(3) Whether the ESA, in combination with the underlying tariff, provides protections necessary to ensure that other customers of the Commission-regulated electric utility are not placed at risk for paying stranded costs associated with the Commission-regulated electric utility serving the large energy use facility.

(4) The need for and impact of the project proposed by the large energy use facility on the safe, adequate, and reliable operation or delivery of electric supply services.

It shall be considered a positive factor in evaluating an ESA if a large energy use facility constructs or causes the construction of new generation, where such new generation:

(ii) mayhas includenot newlypreviously constructedparticipated generationin atthe anPJM existingBase facility,Residual uprates,Auction; or repowering of deactivated or retired generating units as of June 12, 2026;

provided(iii) thatmatches capacity that previously participated in the PJMload Basecharacteristics Residualof Auction qualifies only to the extentlarge attributableenergy touse suchfacility; uprate or repowering;

(iii)and matches(iv) is determined by the megawattState demandEnergy Office to be consistent with the achievement of the largeState’s energygreenhouse usegas facility;emissions reductions targets, as specified in § 10003 of Title 7, and the State’s renewable portfolio standards, as specified in § 354 of this title.

(iv)It repurposesshall existingfurther transmissionbe interconnectionconsidered infrastructure,a land,positive orfactor otherin generation-relatedevaluating assetsan associatedESA withif a priorlarge in-stateenergy facility;use facility agrees to demand flexibility terms to assist with energy affordability, including demand flexibility during periods of dramatically increased wholesale electricity costs.

(5) The extent to which the large energy use facility will use a local labor force for construction and (v)ongoing isoperation, determinedand bythe extent to which the HDproject :will pay such labor force a prevailing wage.

(6) The impact of the large energy use facility on the area in which it is to be located, including the possibility that the large energy use facility provides a Community Benefits Agreement to ameliorate any negative impacts.

(7) The impact of approving the ESA on the State’s economy, the impacts to the State’s ratepayers, and whether the application is consistent with the achievement of the State’s greenhouse gas emissions reductions targets, as specified in § 10003 of Title 7, and whether the application is consistent with the State’s renewable portfolio standards, as specified in § 354 this title.

HD :

DS Page 26 of 613 Released:

06/16/202605/21/2026 11:5012:05 AMPM State(8) EnergyThe Officeimpact toof beapproving consistent with the achievementESA ofon the State’shealth, greenhousesafety, gasand emissionswelfare reductions targets, as specified in § 10003 of Title 7, and the State’sgeneral renewablepublic. portfolio standards, as specified in § 354 of this title.

It(9) shallThe furtherdemonstrated beexperience, consideredoperating aexpertise, positiveand factorlong-term inviability evaluatingof anthe ESA if a large energy use facility agreesor toits demandaffiliates, flexibilitypartners, termsor toparent assistcompany. with energy affordability, including demand flexibility during periods of dramatically increased wholesale electricity costs.”.

FURTHER(e) AMENDThe HouseCommission Substitutemust No.act on an application to approve a negotiated ESA within 90 days of the submission of a completed application.

1For good cause shown, and if it finds that the public interest would be served, the Commission may extend the date of its action on an application for Housean Billadditional No.period not to exceed 90 days.

233The onapplication linefor 165approval byof deletingan “theESA ESA”must andbe insertingin writing, in lieusuch thereofform “anas ESA”.determined by the Commission, and contain such data, studies, documentation, or other information as the Commission shall prescribe.

FURTHERThe AMENDapplication Housemust Substituteinclude No.all of the following:

1(1) forThe Houseimpact Billof No.the plan on transmission capacity.

233(2) onUpgrades, lineif 168any, byto deletingtransmission “aor negotiated”distribution andinfrastructure insertingassociated inwith lieuthe thereofplan. “an”.

FURTHER(3) AMENDThe Houseamount Substituteof No.electricity utilized by generation type and whether it is sourced from new or existing generation.

1(4) forHow Houseelectricity Billuse No.will be curtailed during high demand periods.

233(5) onThe linequantity 183 by deleting “federal or PJM programs” and insertingtype inof lieuon-site thereofback-up “federalpower, orif PJMany. laws, rules, regulations, or tariffs”.

FURTHER(6) AMENDThe Houseanticipated Substitutelifespan No.of the facility.

1(7) forWhether Housethe Billbusiness No.will trigger supplemental transmission projects.

233(8) byA insertingstudy of the followingimpact afterof linethe 199plan andon beforeelectricity linecosts 200:in Delaware.

“(j)(9) ESAsA andstudy TSAsof mustthe beimpact interpreted and administered in a manner consistent with Chapter 10 of this title, including the Stateplan policyon ofgrid retailreliability competitionin andDelaware. direct access.

Nothing(f) inThe thisCommission section,may §revise 317and ofadjust thisits title,regulations in response to federal or anyPJM regulationprograms promulgatedregarding hereunderthe shallintroduction beof construedlarge toenergy douse anyfacilities ofthroughout the following:PJM region.

(1)The LimitCommission may work to ensure that changes in capacity market operation, transmission cost allocation, or impairother processes at the rightPJM oflevel anywill retailnot, electricto customer,the includingmaximum aextent largepossible, energyresult usein facility,higher tocosts purchasefor electricDelaware supplyratepayers servicenot fromincluded ain certifiedthe electriclarge supplier.energy use facility classification.

(2)Any Requireadjustments ato largethe energytariff usespecified facilityin § 317 of this title, or in the regulations governing ESAs, must aim to procureassure electricthat supplyany servicenew fromobligations afall Commission-regulatedupon electricthe utility.class of energy users causing such obligations.

(3)(g) ConditionA interconnection,facility distributionin service,operation oras transmissionof service[the uponeffective thedate customer’sof agreementthis toAct] takemay electricnot supplybe serviceconsidered from a Commission-regulatedlarge electricenergy utility.”.use facility.

FURTHERHowever, AMENDa Housechange Substituteto No.an existing facility that increases the usage above the thresholds defined for a large energy use facility will trigger the provisions of this chapter requiring the approval of an ESA.

1(h) forAn HouseESA Billmay No.not be transferred from the applicant to another person or entity without the written approval of the Commission.

233 by deleting lines 213 through 215 in their entirety and inserting in lieu thereof the following:

“a.

Require the pre-emergency curtailment of large energy use facilities subject to directives from PJM to the Commission-regulated electric utility in accordance with applicable PJM requirements.”.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 on line 223 by deleting “(b)(1)a.” and inserting in lieu thereof “(b)(1)b.”.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 on line 226 by deleting “load characteristics” and inserting in lieu thereof:

“megawatt demand”.

DS Page 37 of 613 Released:

06/16/202605/21/2026 11:5012:05 AMPM 83(i) FURTHERCommission-regulated AMENDelectric Houseutilities Substituteshall No.be required to provide to the Commission annually detailed, project-specific information for each anticipated large energy use facility, including development status, evidence of financial commitment, ramp schedules, and any duplicative interconnection requests.

1The Commission shall submit a report listing the ESA applications received and their disposition for the prior year to the Governor, the Director and Librarian of the Division of Legislative Services, and the Secretary of the Senate and the Chief Clerk of the House Billfor No.distribution to members of the General Assembly not later than December 31st of each year.

233Section on3. line 233 by inserting “military,” after “police,” as it appears therein.

FURTHERAmend AMENDSubchapter HouseIII, SubstituteChapter No.1, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows, and redesignating accordingly:

1§ for317. House Bill No.

233Rates byfor deletinglarge linesenergy 243use throughfacilities. 249 in their entirety and inserting in lieu thereof the following:

“(c)(a) ForCommission-regulated purposeselectric ofutilities receivingmust, distributionwithin and180 transmissiondays service,after finalization of the tariffregulations shallunder require§ each203G largeof energythis usetitle, facilityestablish toa enterclassification intoof anservice Electricfor Serviceretail Agreementelectricity (“ESA”)consumers that isare reviewedlarge andenergy approveduse byfacilities. the Commission under the provisions of § 203G of this title.

The tariffclassification shall further require, as a condition of receiving retail electric service inmust thebe State,separate thatand adistinct largefrom energyclassifications useof facilityservice isfor subjectother tocommercial aor transmissionindustrial rateretail onelectricity fileconsumers withand thehave Federalits Energyown Regulatorytariff Commissionschedule. that, as to transmission costs, meets the objectives of § 317 of this title.

(b) All Commission-regulated electric utilities shall develop a load shed protocol to allow large energy use facilities to be curtailed in anticipation of or during emergency conditions, including the installation of any necessary equipment or technology before a customer is interconnected.

This subsection applies only to a load interconnected after December 31, 2026.

(1) The load shed protocol, to the extent feasible and consistent with reliability and safety, shall do all of the following:

a.

Require the pre-emergency curtailment of large energy use facilities subject to an approved PJM Interconnection, LLC “Connect and Manage” framework, or successor framework, in accordance with applicable PJM requirements.

b.

Require the curtailment of non-critical large energy use facilities prior to the curtailment of other non- critical loads during a pre-emergency or emergency reliability event.

c.

Require the curtailment of critical large energy use facilities prior to the curtailment of other critical loads during an emergency reliability event.

d.

Include clear performance expectations and consequences for noncompliance.

e.

Require a large energy use facility to inform potential customers that the facility is subject to curtailment under certain conditions and that, therefore, it may not be suitable for serving critical loads.

HD :

KL :

DS Page 8 of 13 Released:

05/21/2026 12:05 PM f.

Exempt large energy facilities from the curtailment requirements of paragraphs (b)(1)a.

through e.

of this section if such large energy use facilities construct or cause the construction of new generation, where such new generation:

(i) is located within Delaware;

(ii) has not previously participated in the PJM Base Residual Auction;

(iii) matches the load characteristics of the large energy use facility;

and (iv) is determined by the State Energy Office to be consistent the achievement of the State’s greenhouse gas emissions reductions targets, as specified in § 10003 of Title 7, and the State’s renewable portfolio standards, as specified in § 354 of Title 26.

(2) The load shed protocol must require that all large energy use facilities comply with all of the following, as a condition of interconnection:

a.

Install the necessary equipment or technology to differentiate critical and non-critical loads, such as the use of dedicated or segregable feeders or allow the large energy use facility to certify that it is not hosting critical loads.

Examples of critical load include essential health and public safety facilities, such as hospitals, police, fire facilities, 911 facilities, wastewater treatment facilities;

facilities providing electric service to the bulk electric system, including off-site power to generating stations, substation light and power;

critical gas infrastructure used to supply gas pipeline pumping plants, processing, and production facilities;

and telecommunication facilities.

b.

Maintain physical and operational readiness measures that facilitate both targeted curtailment of non- critical loads and whole facility curtailment.

c.

Maintain telemetry and communications capability sufficient for the Commission-regulated electric utility to execute and confirm curtailment actions during pre-emergency or emergency operations.

(3) Prior to curtailment, the Commission-regulated electric utility shall confer with the customer to the extent feasible to shed load in a coordinated manner.

(c) As a component of the tariff, each large energy use facility shall enter both an Electric Service Agreement (“ESA”) and a Transmission Security Agreement (“TSA”).

A specific ESA and TSA must be negotiated between the Commission-regulated electric utility and the large energy use facility.

The ESA shall thereafter be reviewed and approved by the Commission under the provisions of § 203G of this title.

No large energy use facilityfacilities mayshall receive service from a Commission-regulated electric utility until such tariff schedule has been reviewed and approved by the Commission.

The(d) ESAAll mayESAs notsubmitted restrictto the procurementCommission offor electricreview supplyand approval in connection with this classification of service frommust acontain certifiedall electricprotective supplier.”.provisions required under § 203G of this title.

FURTHER(e) AMENDThe HouseESAs Substituteand No.any tariff required by this section shall collectively:

1HD for: House Bill No.

233KL by: deleting lines 253 through 255 in their entirety and inserting in lieu thereof the following:

“(1)DS DirectlyPage assign9 the costs of providing13 toReleased: a large energy use facility the electric services identified in paragraphs (e)(1)a.

05/21/2026 12:05 PM (1) Directly assign all of the costs of serving a retail electricity consumer that is a large energy use facility over the term of the ESA contract to the large energy user and ensure that the costs of serving the class of large energy use facilities are borne by that class and not by any other class of customer, including:

a.

Directly assign all costs related to distribution infrastructure investments required to interconnect a large energy use facility incurred by the Commission-regulated electric utility directly to the large energy use facility;

any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

b.

Directly assign all costs of electric capacity procurement incurred by the Commission-regulated electric utility on a total system basis as a result of electric capacity procurement requirements imposed by PJM Interconnection due to large energy use facilities;

any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.

c.

Directly assign all increased costs for transmission infrastructure resulting from any large energy use facility to the large energy use facility;

any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

d.

Directly assign all costs related to interconnection, impact, engineering, and related studies undertaken by the Commission-regulated electric utility to initiate, modify, or provide service to the large energy use facility;

any costs that cannot be directly assigned must be assigned to the class of customers for large energy use facilities and not to any other class of customers.

e.

Allocate any financial or other obligation assigned to a Delaware Commission-regulated electric utility associated with PJM’s Reliability Backstop Procurement of new capacity undertaken for large energy use facilities directly to the large energy use facility that gave rise to the financial or other obligation;

any costs that cannot be directly assigned must, to the maximum extent possible, be assigned to the class of customers for large energy use facilities and not to any other class of customers.

(2) Require that each large energy use facility seeking new or modified service shall, as a condition of taking service from a Delaware Commission-regulated electric utility, provide appropriate financial security to ensure that the Commission-regulated electric utility’s existing customers are held harmless for any of the costs in paragraphs (e)(1)a.

of this section thatfor are provided under a rate subject to the jurisdictionentire term of the CommissionESA. and ensure that no such costs are borne by any other class of customer, including:”.

FURTHERSuch AMENDfinancial Housesecurity Substitutemust No.remain in effect for the period necessary to ensure recovery of the full amount of such assigned investments.

1 for House Bill No.

233 at line 278 by inserting “the electric utility to” after “financial security to” as it appears therein.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 on line 280 by inserting “such as bonding or letters of credit backed by an investment-grade entity, or other cash-equivalent financial guarantees,” after “Such financial security” as it appears therein.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 at line 282 by deleting “power for any curtailment” and inserting in lieu thereof “service for curtailment”.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 at line 289 by deleting “or cost shifts” as it appears therein.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 on line 293 by deleting “Commission- regulated electric utilities” as it appears therein and inserting in lieu thereof “Such independent consultant”.

DS Page 410 of 613 Released:

06/16/202605/21/2026 11:5012:05 AMPM FURTHER(3) AMENDRequire Housethat Substitutethe No.large energy use facility accept interruptible power for any curtailment obligations assigned to the DPL Zone by PJM, and establish a process that ensures that large energy users are curtailed in a manner prescribed by the Commission.

1(4) Establish procedures for Housean BillIncremental No.Cost Test (“ICT”) that will measure revenues from a large load customer and compare those to the incremental costs that serving that customer imposes on the system.

233Incremental oncosts lineto 297be bystudied deletingshall “Allinclude costs”increases asin itcapacity appearscosts, thereinlocational marginal prices, transmission and insertingdistribution system infrastructure costs, including any differential in lieuPJM thereofNetwork “ICTIntegration studyTransmission costs”.Service rates, and any other systems costs or cost shifts reasonably attributable to the large energy use facility.

FURTHERThe AMENDICT Houseshall Substitutebe No.performed by an independent consultant retained by the Commission on a 3-year cycle, or at such other time as the Commission determines is necessary to evaluate material changes in the customer’s load, operations, or system impacts, and the ESA will provide for adjustments to the service if the ICT reveals that the large load energy user is imposing costs upon other classes of service.

1Commission-regulated forelectric Houseutilities Billwill No.perform an ICT to confirm that the revenues from a new large energy use facility are larger than the incremental costs associated with the customer.

233If onthe lineICT 299shows bythat insertingrevenues “orare otherprojected appropriateto means”be afterlower “throughthan incremental costs, then the ESA”Commission-regulated andelectric beforeutility, in consultation with the periodlarge asenergy ituse appearsfacility, therein.shall develop a proposal in the ESA to bring additional revenues such that incremental costs are paid for and a benefit is shown for system customers.

FURTHERAll AMENDcosts Houseincurred Substituteby No.the Commission- regulated electric utility, the Commission, including the independent consultant, and the Division of the Public Advocate must also be recovered through the ESA.

1Such forproposal Housemay Billinclude, No.without limitation, a class- or customer-specific Consumer Protection and Infrastructure Fee designed to recover the incremental costs, infrastructure impacts, or cost shifts identified through the ICT.

233After recovery of costs incurred by deletingthe linesCommission-regulated 307electric throughutility, 309the Commission, and insertingthe inDivision lieuof thereofthe Public Advocate, the following:Commission-regulated electric utility shall apply all such funds received as a direct bill credit to residential and small commercial customers to offset the impacts of large energy use facilities that cannot otherwise be addressed through a large load tariff.

“(5)All To the extent a large energy use facility procures electric supply service from a certified electric supplier, any costs allocatedrelated underto thisESA sectionand thatICT arereview associated with capacity, energy, or ancillary service obligations shall be structuredborn inby a manner compatible with the obligationsclass of suchlarge supplierenergy asuse thefacilities load-servingand entitymay innot regionalbe wholesaleallocated markets,to includingany PJMother interconnection.customer class.

(f) In addition to an ESA, all large energy use facilities operating under the classification of service created by this section must asnegotiate a conditionTSA of receiving retail electric service, have on file with the Federal Energy Regulatory Commission a TSACommission-regulated thatelectric constainsutility. at least the following minimum terms:”.

FURTHERAs AMENDa Housecondition Substituteof No.receiving retail electric service, the TSA shall include at least the following minimum terms:

1 for House Bill No.

233 at line 317 by deleting “5 years” and inserting in lieu thereof “10 years”.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 by deleting lines 324 through 329 in their entirety and inserting in lieu thereof the following:

“(h) ESAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes based on Federal Energy Regulatory Commission Orders or PJM governing documents, tariffs, or manual changes that relate to the operation of large energy use facilities.

Commission-regulated electric utilities, if directed by the Commission, must seek or support any necessary Federal Energy Regulatory Commission filing to amend the TSA to address changes in the ESA.

Any such amendment is subject to Federal Energy Regulatory Commission acceptance or approval.

(i) The Commission may require large energy use facilities to participate in a registry for the purpose of tracking load forecasting, compliance with bring your own new capacity or curtailment requirements, whether administered by PJM, the Commission-regulated electric utility, or a regulatory body.”.

FURTHER AMEND House Substitute No.

1 for House Bill No.

233 by deleting lines 343 through 345 in their entirety and inserting in lieu thereof the following:

“(c) A Commission-regulated electric utility has no obligation to provide distribution service to a large energy use facility unless the facility has entered into an Electric Service Agreement approved by the Commission under § 203G of this title.

Nothing in this subsection shall be construed to do either of the following:

DS Page 511 of 613 Released:

06/16/202605/21/2026 11:5012:05 AMPM (1) RequireFinancial asecurity sufficient to ensure that the large load energy useuser facilitycan toprovide takeguarantees electricthat supplyits annual payments for transmission service fromwill align with the Commission-regulatedannual electricpayment utility.that would be allocated to the large load energy user.

(2) LimitRequire thebonding abilityor letters of acredit largebacked energyby usean facilityinvestment-grade toentity, takeor electricother supplycash-equivalent servicefinancial fromguarantees, ato certifiedensure electricprotection supplierof inother accordancecustomers within Chapterthe 10event of thisbankruptcy, title.”.liquidation, or other circumstances that would prevent the large energy use facility from meeting its obligations under the TSA.

SYNOPSIS(3) ThisA amendment15-year makescontract changesperiod tofor addressthe Federalsecurity Energythat Regulatorycommences Commissionafter jurisdictionalload authorityramp. regarding transmission rate design and policy and other technical and conforming edits.

(4) A load ramp period limited to 5 years.

(5) A 5-year period of advance notice of termination.

(6) A demand floor set at 90% of contract capacity.

(g) Both ESAs and TSAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes in the financial condition of the large energy use facility or guarantor changes, or market conditions change, over the term of the contract.

The Commission and the Commission-regulated electric utility have the authority to require updated information to reevaluate the customer and its collateral requirements, which may be adjusted accordingly.

(h) Both ESAs and TSAs must contain provisions that allow for amendments, if required by the Commission, to adjust to changes based on Federal Energy Regulatory Commission Orders or PJM tariff or manual changes that relate to the operation of large energy use facilities.

(i) The Commission may require large energy use facilities to participate in a registry for the purpose of tracking load forecasting, compliance with bring your own new capacity or connect and manage requirements, whether administered by PJM Interconnection or another party.

(j) The following requirements apply to all large energy use facilities and must be reflected in any applicable tariff, which values may be increased by the Commission, to be applicable to future large energy use facilities:

(1) Large energy use facilities shall contribute to the Low-Income Charge established under § 1014(b) of this title at a rate of $0.000190 per kWh.

(2) Large energy use facilities shall contribute to the Green Energy Fund established under § 1014(a) of this title at a rate of $0.000712 per kWh.

(3) Large energy use facilities are “end-use customers” for purposes of § 354 of this title and are not entitled to the exemption under § 353(b) of this title.

(4) The tariff must include a proportional allocation of the non-by-passable charge for funds distributed to a qualified fuel cell provider under § 364(b) of this title.

DS Page 612 of 613 Released:

06/16/202605/21/2026 11:5012:05 AMPM 0281530216Section 4.

Amend § 1008, Title 26 of the Delaware Code making deletions as shown by strike through and insertions as shown by underline § 1008.

Duties of electric distribution companies.

(c) DP&L has no obligation to provide electric supply service to any “large energy use facility,” as defined in § 102 of this title, which does not hold an Electric Service Agreement negotiated by DP&L and approved by the Commission under § 203G of this title.

Section 5.

If any section, term or provision of this Act shall be adjudged invalid for any reason, such judgment shall not effect, impair, or invalidate any other section, term, or provision of this Act, and the remaining sections, terms, and provisions shall be and remain in full force and effect.

Section 6.

This Act takes effect upon enactment.

Commission-regulated electric utilities must file an application to establish the rates required under this Act within 180 days of the finalization of regulations by the Commission contemplated in Section 203G of Title 26, as contained in Section 2 of this Act.

SYNOPSIS This Act requires regulated utilities to establish a separate rate class for large energy use facilities that mitigates the risk of costs associated with expanding infrastructure and maintaining reliability in the face of growing demand from being shifted to residential, small business, and other electric customers.

Wherever possible, the costs of large energy use facilities should be directly assigned to those facilities, and where direct assignment is not possible, the costs should be allocated to the class of large energy use facilities and not to other customer classes.

To accomplish this, the Act sets forth minimum requirements for Electric Service Agreements (ESAs) and Transmission Security Agreement (TSAs) to be in place for any large energy use facility.

The Commission shall promulgate regulations to implement these agreements.

ESAs shall be reviewed and approved by the Commission prior to the interconnection of a large energy use facility and provide a regulatory framework to enable responsible developers of large energy use facilities to enter into agreements to fairly allocate costs among customer classes.

The Public Service Commission will consider several factors in determining whether to approve an ESA, including consistency with the Commission’s regulations;

whether the ESA and tariff ensure that all costs attributable to the large energy use facility are assigned to the class of large energy use facilities;

whether other customers are adequately protected from the risk of paying stranded asset costs;

the impact of the large energy use facility on delivering safe, adequate, and reliability electricity;

the impact on the State, including the economy, other ratepayers, and environmental impacts;

and the viability of the developer of the facility.

In combination, the ESAs and the large load tariff shall ensure that, wherever possible, distribution infrastructure investment costs, capacity procurement costs, reliability backstop procurement costs, transmission infrastructure costs, and study costs attributable to a large energy use facility are all directly assigned to that large energy use facility.

Where direct assignment is not possible, these costs should be allocated to the class of large energy use customers.

The Commission shall develop an “incremental cost test” to measure the revenues and costs from a large energy use facility to ensure that there are not cost shifts to other customers.

The Act further establishes interruptability requirements for large energy use facilities to ensure other customers are protected from reliability impacts caused by large energy use facilities.

Facilities that construct or cause to be constructed new in state generation may exempt themselves from interruptability.

Finally, the Act requires large energy use facilities to contribute to the low income fund and green energy fund at higher rates than other customers and requires large energy use facilities to contribute to renewable portfolio standard costs and qualified fuel cell provider costs.

The Act takes effect upon enactment and regulated utilities must file an application to establish rates required under this Act within 180 days of the effective date.

HD :

KL :

DS Page 13 of 13 Released:

05/21/2026 12:05 PM 3501530133