Skip to main content
Delaware House Republicans

Electricity Prices Rise as Supply Lags Behind Demand

December 19, 2025
Looking upward from the base of a power line with an electrical plug coming in from the right and white jagged arrows point up and down signifying Delaware's imbalance of electricity supply and demand.

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.

Recent Updates


Filter by Category

State Revenue Forecast Predicts an Increase of $196 Million

The Delaware Economic Financial Advisory Council (DEFAC) issued its latest state revenue estimate earlier this week for the upcoming Fiscal Year 2027, which begins July 1. This estimate is the fourth in a series of five and will play a […]

State Revenue Forecast Predicts an Increase of $196 Million

“Buy Local, Eat Local” Benefits Consumers and Delaware Family Farms

Twelve years ago, State Rep. Lyndon Yearick partnered with the Delaware Department of Agriculture to establish Delaware Grown Week — an annual observation to facilitate better, healthier relationships between Delaware farmers and local consumers. Last week, Rep. Yearick sponsored House […]

“Buy Local, Eat Local” Benefits Consumers and Delaware Family Farms

State Revenue Forecast Predicts an Increase of $196 Million

The Delaware Economic Financial Advisory Council (DEFAC) issued its latest state revenue estimate earlier this week for the upcoming Fiscal Year 2027, which begins July 1. This estimate is the fourth in a series of five and will play a […]

State Revenue Forecast Predicts an Increase of $196 Million

“Buy Local, Eat Local” Benefits Consumers and Delaware Family Farms

Twelve years ago, State Rep. Lyndon Yearick partnered with the Delaware Department of Agriculture to establish Delaware Grown Week — an annual observation to facilitate better, healthier relationships between Delaware farmers and local consumers. Last week, Rep. Yearick sponsored House […]

“Buy Local, Eat Local” Benefits Consumers and Delaware Family Farms

State Rep. Jeff Hilovsky Not Seeking Reelection

For Immediate Release: Thursday, May 7, 2026For More Information: Joseph Fulgham, 302-744-4184 State Rep. Jeff Hilovsky (R-Long Neck, Oak Orchard) announced today that he will not seek reelection this fall. The two-term legislator said his decision was mainly motivated by […]

State Rep. Jeff Hilovsky Not Seeking Reelection

The Road to Equity: Delaware’s Property Reassessment Crisis

by Rep. Mike Smith For the first time in over 40 years, Delaware underwent a comprehensive statewide property reassessment. This process has understandably caused “sticker shock” and frustration for many. It is essential to clarify that this was not a […]

The Road to Equity: Delaware’s Property Reassessment Crisis

Time to Transform Delaware Public Education

By Dr. Jeff Hilovsky, State Representative, District 4 The world is changing nearly faster than we can react. Education in Delaware can lead the way by wisely incorporating Artificial Intelligence (AI) into classrooms now. Education must change, as the centuries-old […]

Time to Transform Delaware Public Education

New Law Mandates Students Receive Financial Literacy Education

Hundreds of students, state officials, and educators joined State Rep. Jeff Hilovsky on Thursday at Delaware State University as his financial literacy education legislation was ceremonially signed into law by Gov. Matt Meyer. Three years in the making, House Substitute […]

New Law Mandates Students Receive Financial Literacy Education