DELAWARE — A new bill introduced by Delaware Democrats could cut electric and gas rates by up to 20% for low-income families — but the measure is drawing some pushback over the added costs it could bring to other ratepayers.
The legislation would offer discounts to residents who qualify for the Low Income Home Energy Assistance Program (LIHEAP), which includes households of four earning less than roughly $72,000 annually. The proposal includes a surcharge that would apply to “all customer classes,” meaning customers across the board could see higher bills to offset the cost of the program.
Republican lawmakers, including Rep. Bryan Shupe, argue the bill unfairly shifts the financial burden to middle-class families, regardless of their usage, and further into the pockets of power companies.
“This bill basically tells people in the middle class that they’ve got to pay more for the individuals on the lower income, just because they make less money than they do. It has nothing to do with usage,” Shupe said.
He also noted that the General Assembly recently passed legislation to help low-income families pay their utility bills without impacting other customers.
“We just did pass a bill that allowed for the government funds — the SEU funds — that collect from environmental pollution to go back to the same people that are low income, to help pay those bills off,” Shupe said.
In a statement, State Sen. Trey Paradee, a co-sponsor of the bill, defended the proposal, saying it targets a growing affordability crisis.
“These expenses are disproportionately harmful to our low-income neighbors who are already struggling to make ends meet while living expenses continue to increase,” Paradee said. “This legislation aims to provide relief to folks who need it most, and I look forward to introducing it to the Senate.”
The bill is expected to be heard in committee in the coming weeks.