Why Are Our Electric Bills So High — and What Happens Next?
- Michelle Parsons
- 1 hour ago
- 5 min read
Many of you have asked the same question: why is my electric bill so high, and is it going to get worse?
At the recent Sussex GOP meeting, Dr. David Legates outlined several pressures affecting the PJM regional grid and Delaware’s position within it. The situation is not driven by one single cause. There are several factors pushing prices upward at the same time.
Why Your Electric Bill Is Rising
1. Reliable Power Is Disappearing
Across the PJM (Pennsylvania-New Jersey-Maryland) regional grid, the multi-state network that connects power plants to homes and businesses, reliable power plants are retiring, including Delaware’s Indian River Unit 4 and Maryland’s Brandon Shores and Wagner units. When dependable supply leaves the system, the remaining power becomes more expensive.
2. Electricity Demand Is Climbing
At the same time, demand for electricity continues to grow. Proposed new data centers, state policies promoting electric vehicles and electric heating and appliances, and ongoing regional population growth are increasing the need for power. When supply tightens while demand grows, prices rise. That’s not politics, that's math.
3. State Mandates Add Costs
Delaware is a small user within a much larger regional system (PJM serves Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and DC), and no single state controls PJM alone. Because we cannot control regional supply decisions, we must be careful about the policies we control here at home.
One area Delaware does control, is its own energy mandates. State policy directly affects what families see on their electric bills. Delaware requires utilities to purchase increasing percentages of wind and solar power. If utilities cannot meet those targets, they must pay compliance penalties — and those penalties show up on monthly electric bills.
This isn’t a penalty on utilities. It’s a penalty on Delaware families!
4. Lower Prices Today, Higher Risks Tomorrow
Delaware families are already feeling the impact of higher electric bills. One component of those bills is the PJM capacity market - the yearly auction that pays power plants to be ready when demand spikes. Capacity is like paying firefighters to be on duty before a fire starts. You’re paying for readiness so the system is prepared during extreme heat or cold.
Recent rule changes mean some plants kept online under special reliability arrangements may be allowed to bid at very low prices in that auction, even though they are being compensated separately. That can make the auction price appear lower than tightening supply conditions would normally suggest.
As Dr. Legates explained, if capacity prices do not fully reflect scarcity, power companies may hesitate to invest billions in building new reliable plants because those prices help determine whether a new plant can recover its construction and operating costs. Investors and lenders look at those forward price signals when deciding whether to finance new generation. If the expected revenue does not justify the risk, projects do not move forward.
Without a clear opportunity to earn back that investment, fewer plants get built.
When older plants retire faster than new ones are constructed, the system becomes tighter. A tighter system means higher future prices and greater reliability risk, which can lead to black outs. Delaware Democrats are pushing energy policies that would lead to what is happening in North Korea, with no reliable electricity for basic needs.
What Delaware Must Do Now
Before adding more policy pressure, Delaware families deserve clear answers. We need transparency about projected supply margins, cost drivers in electric bills like mandates and self-imposed penalties, and how we can ensure Delaware has affordable and reliable electricity.
We need reliable energy at affordable prices!
Write to Governor Meyer - Sample Email:
Subject Line: Reverse Renewable Energy Mandates and Re-open Indian River Power Plant
Dear Governor Meyer,
I am writing as a Delaware ratepayer concerned about rising electric bills and tightening regional power supply.
I respectfully urge your administration to reverse existing renewable mandate penalties especially when energy prices are rising and Delaware families are struggling.
I also ask that Delaware pursue long-term contracts for reliable energy sources, including nuclear and natural gas, and reopen the Indian River energy plant, to help stabilize supply and reduce future price volatility.
Reliable and affordable electricity is essential for Delaware families!
I appreciate your attention to this important issue.
Sincerely,[Your Name]
If you like what we do and would like to help support our mission, please send us a donation. We thank you for choosing to keep the 38th District Republican Club a success and a beaming light of conservative values in Delaware!
Looking Ahead: Next Meeting Speaker
The 38th District Southern Delaware Republican Club meets on the first Monday of each month. Our next meeting will be held on Monday, March 2, 2026. Members were also reminded that the meeting will feature U.S. Senate candidate John Shull, continuing the club’s commitment to hearing directly from candidates and encouraging thoughtful, issue-driven discussion. Republicans, unaffiliated voters, and independent thinkers are always welcome.
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Upcoming Meetings
38th Club Meeting, Monday, March 2, 6:30pm, South Coastal Library, Bethany Beach
Sussex GOP Region Meeting, February 9th, 6:30pm, Millsboro Fire Hall
IRSD Committee Meetings, Monday, February 9th, Millsboro Middle, 4pm-7pm
IRSD School Board Meetings, Monday, February 23rd, 6:30pm, Millsboro Middle
38th Club Meeting, Monday, April 6th, 6:30pm, South Coastal Library, Bethany Beach
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