DOVER, Del. — Delaware regulators are taking steps to ensure that large energy users, including data centers, pay their fair share for the costs of connecting to the state’s power grid.
At a meeting on Sept. 3, the Delaware Public Service Commission voted to open a docket to develop a “large load tariff” after a joint petition from the Delaware Division of the Public Advocate and the commission’s staff. The proposal aims to prevent energy infrastructure costs from being shifted to other ratepayers. The commission also agreed to pause the interconnection of new large load facilities within Delmarva Power & Light’s service territory until the new tariff is established, a move that Delmarva supported. A formal written order is expected at the commission’s Oct. 15 meeting, when a hearing examiner will be appointed to manage the docket.
Governor Matt Meyer and Public Advocate Jameson Tweedie have urged the commission to create rules requiring data centers using more than 25 megawatts of electricity to pay the full cost of connecting to the grid. “We know that AI is shaping the future of the world, and the First State is ready to help lead. But it needs to be done sustainably,” Meyer said in a statement. “That’s why we’re requiring big data centers to pay their fair share when they plug into our power grid. We’re making sure Delaware families don’t foot the bill for the economy of the future, while also reducing negative impacts on air quality, water, and other precious natural resources.”
Tweedie said the tariff would help ensure fairness while protecting the state’s electrical infrastructure. “New industries should not impose unfair harms on other Delawareans,” he said. “A large load tariff helps to ensure data centers pay their fair share, including for the huge investments in electrical infrastructure they need. It can also help address risks to grid reliability if demand grows faster than new generation is built.”
Data centers are among the fastest-growing consumers of electricity and water in the United States. A facility using 25 megawatts or more is classified as a “large load” operation, and a proposed Delaware City data center could use up to 1,200 megawatts at full capacity, nearly half of the state’s total summer peak demand of 2,700 megawatts. Regulators in other states within the PJM Interconnection region are also considering or adopting similar tariffs aimed at addressing the rapid expansion of large-scale energy users.
