Earlier this week, the National Energy Assistance Directors’ Association released an updated winter outlook showing that U.S. home heating costs are projected to rise 9.2% this winter. Surging electricity prices and colder-than-average weather were two of the main factors cited by the group that represents the state directors of the Low Income Home Energy Assistance Program.
According to the forecast, families that rely on electricity for heating will see average costs rise 12.2%, from $1,090 to $1,233. Adjusted for inflation, residential electricity prices in 2025 are at their highest level in a decade. Since 2021, the average cost per kilowatt-hour has risen 27.9%, while the average monthly electric bill has climbed 29.2%.
In related news, PJM Interconnection continued to sound a cautionary note regarding the challenges of maintaining the regional power grid serving 13 states, including Delaware.
PJM manages electricity demand to maintain constant service, coordinates maintenance and upgrades to the power grid, integrates power producers on and off the grid as they enter service or retire, and runs auctions to secure power production commitments at predictable costs.
In announcing the organization’s latest power auction, Stu Bresler, who is set to become PJM’s chief operating officer on January 7, said: “This auction leaves no doubt that data centers’ demand for electricity continues to far outstrip new supply, and the solution will require concerted action involving PJM, its stakeholders, state and federal partners, and the data center industry itself.”
PJM maintains that the supply-and-demand imbalance will require action on multiple fronts, including accelerating the entry of new generation into the system.
State Rep. Kevin Hensley (R-Townsend, Odessa, Port Penn) is one of the prime sponsors of a bipartisan bill to increase power generation in Delaware. House Bill 186 would incentivize the construction and operation of up to three high-efficiency Combined-Cycle Gas Turbine electrical generation facilities, with outputs between 100 MW and 500 MW, by creating an Electricity Production Tax Credit (EPTC) and bonus credits.
A single 500 MW plant could serve approximately 210,000 homes.
Rep. Hensley says the proposal would increase the availability of cost-effective, high-efficiency energy production within the state. At present, Delaware imports most of its electricity via the grid.
The bill’s sponsors maintain that Combined-Cycle Gas Turbine power plants are a proven, available technology that can provide significant dispatchable power to meet Delaware’s growing energy needs.
The measure is pending action in the House Revenue & Finance Committee. The 153rd General Assembly returns to work on January 13 to begin its 2026 session.
