Week of 2/9: Energy Bills
Friends,
Let’s talk about energy. Many of us have seen our energy bills go up by hundreds of dollars in the last few months – mine sure has. I’ve been meeting with Delaware's energy experts and learning more about this problem. There are reasons why our energy bills are rising, and plenty we can do about it.
Did you know that there is only one power line that serves all of Delaware? It’s a 500kV line that runs across the northern parts of New Castle County, with a maximum capacity of 1,000 to 2,000 megawatts. When we need to deliver more electricity than the lines can support, that delivery becomes congested. Congested electricity costs more money.
Think about electricity congestion like traffic congestion. When you’re stuck in traffic, you can take the backroads. That takes more time and more gas, so it costs more money. It’s similar when Delmarva delivers your electricity.
There are other reasons why energy costs are going up, like infrastructure maintenance, regional grid upgrades, and increased reliance on gas power. In fact, 87% of the electricity we use is gas generated – and gas prices are going up. But let’s stick with congestion pricing for now.
If congestion is causing our bills to go up, then why are we congested?
Why are we using more electricity than our infrastructure can deliver?
The answer is simple – we aren’t.
Delaware is part of the PJM Interconnection, which coordinates the movement of electricity between thirteen states. This includes Virginia, Maryland, Pennsylvania, and others. The truth is – we import more electricity than we generate. When other states cause congestion, Delawareans pay the price.
And that is exactly what is happening.
Data centers are springing up all across the country, and especially in Maryland and Virginia. These data centers use massive amounts of energy. For example, the data center that was proposed for Delaware City would have used enough electricity to serve one million homes (and Delaware only has about half that!). In Virginia, data centers sent energy bills soaring by 13%.
Wholesale electricity prices have more than doubled since 2020, with data center regions hit the hardest. Nearly 75% of congested electricity nodes were within 50 miles of significant data center activity.
So here’s the deal – though the data center boom has yet to come to Delaware, we are still part of the PJM Interconnection and still pay for congested electricity prices from states with data centers. And it’s only going to get worse over time.
So here’s what we do.
• Build out more energy generation in Delaware. This will provide good high-paying jobs and make us more energy independent. It would reduce our reliance on gas-powered electricity, which is getting more expensive. More on this in another post – it’s a complicated topic that requires long-term planning.
• Build out battery solutions that can store energy during off-peak and cheaper hours.
• Upgrade infrastructure that improves electricity transmission and reduces congestion.
• Ensure that data center companies pay their fair share for the energy they use and the infrastructure they require. The people of District 12 shouldn’t be paying the bill. I support HB233, which does exactly that.
Delaware’s future in sustainable and affordable energy isn’t just a talking point. It’s a serious issue that requires progressive foresight, immediate action, and long-term planning. What are your thoughts?
Until next time,
Dr. Rob Bahnsen
Candidate for State Representative, District 12
Here’s some reading to get you started, if you wanted to learn more:
“Delaware Explained: Electric grid” - Spotlight Delaware
“Why is my DPL Bill so High?” - Division of the Public Advocate
“AI Data Centers Are Sending Power Bills Soaring” - Bloomberg
“What ‘data center alley’ portends for America’s AI-powered future” - The Hill