Why Are Electric Bills Rising in Western Sussex County — and What Comes Next?

Over the past several weeks, many residents from Seaford to Laurel, from Bridgeville to Portsville, have asked the same question:

Why is my electric bill so high — and should I expect it to rise again?

At recent discussions within Sussex County, energy experts reviewed the broader pressures affecting the PJM regional grid — the multi-state network that supplies electricity to Delaware and much of the Mid-Atlantic. What we are seeing is not the result of a single decision. Several forces are converging at the same time.

Let’s break it down.

1. Reliable Power Plants Are Retiring

Closed Indian River Power Plant

The PJM grid spans multiple states, including Delaware, Maryland, Pennsylvania, Virginia, Ohio, and others. Across that system, dependable power plants that run on coal and natural gas are retiring. Delaware’s Indian River Unit 4 has already closed, and additional units in neighboring Maryland have also retired. When reliable supply leaves the system faster than replacement generation comes online, the remaining electricity becomes more expensive. Simply put: fewer suppliers competing in the market means higher prices.

2. Demand for Electricity Is Growing

Seaford Town Center Project

At the same time, electricity use is increasing.

• New data centers are being proposed across the region

• State policies are encouraging electric vehicles

• Electric heat pumps and appliances are replacing traditional systems

• Sussex County continues to grow

  
  

When demand rises while supply tightens, costs increase. That is basic economics.

Western Sussex County has seen steady development, and with growth comes higher energy needs. Ensuring supply keeps pace with that growth is critical.

3. State Energy Mandates Affect Your Bill

Delaware is a small part of a much larger PJM system, meaning we do not control regional supply decisions on our own. However, we do control our state energy policies.

Delaware requires utilities to purchase increasing percentages of renewable energy. If utilities cannot meet those targets, they must pay compliance penalties.

Those costs do not disappear — they are reflected in monthly electric bills.

While renewable energy plays a role in the mix, the pace and structure of mandates can impact affordability for families, seniors on fixed incomes, and small businesses across Seaford, Laurel, and Bridgeville.

4. Capacity Market Changes and Long-Term Risk

One part of your electric bill is called the capacity charge. This is essentially a readiness payment — ensuring power plants are available when demand spikes during extreme heat or winter cold.

Recent changes in PJM’s auction structure have allowed some plants operating under special reliability agreements to bid at lower rates. While that may temporarily soften prices, it can also send weaker price signals to investors considering building new reliable plants.

Building large-scale energy infrastructure requires billions of dollars in investment. Investors rely on predictable revenue expectations. If those signals are unclear, fewer new plants get financed.

If older plants retire and fewer new ones are built, the system becomes tighter — which can mean higher prices and increased reliability concerns in the future.

What Should Delaware Do?

Before layering additional policies onto families and small businesses, Delaware should:

• Provide clear transparency on projected supply margins

• Review how mandates and compliance penalties impact ratepayers

• Pursue long-term contracts for reliable generation

• Balance affordability with environmental goals

Reliable and affordable electricity is not a partisan issue. It affects seniors, working families, farmers, manufacturers, and small business owners alike. Western Sussex County deserves a stable energy future.

Contact State Leadership

Residents who wish to express concerns about rising electric costs may consider contacting Governor Meyer.

Sample Email

Subject: Ensuring Affordable and Reliable Electricity in Sussex County

Dear Governor Meyer,

I am writing as a Delaware ratepayer concerned about rising electric bills and the long-term reliability of our regional power supply.

As policies evolve, I respectfully urge your administration to carefully review the financial impact of renewable energy mandates and compliance penalties on Delaware families.

I also encourage Delaware to pursue long-term contracts for reliable energy sources such as nuclear and natural gas, while ensuring that our state maintains sufficient generation capacity to meet growing demand.

Affordable and reliable electricity is essential for the well-being of our communities.

Thank you for your attention to this important issue.

Sincerely,

[Your Name]

Get Involved in the 39th & 40th Districts

The 39th District includes addresses in:

Seaford • Blades • Laurel • Bridgeville

The 40th District includes addresses in:

Laurel • Bethel • Cross Keys • Portsville

If you would like to become more involved locally, learn about upcoming meetings, or receive updates, join us on the last Monday of each month at the Seaford American Legion at 230 Front Street at 6:00 pm.

Western Sussex County residents have a strong voice when we stay informed and engaged.