DELMARVA - A Delaware court has ruled in favor of the state, clearing the way for construction of a key electrical substation near the Indian River Power Plant tied to an offshore wind project planned for Ocean City.
The Court of Chancery on Wednesday upheld the General Assembly’s authority to ensure the project moves forward, rejecting challenges from Sussex County and the Town of Fenwick Island.
Fenwick Island Mayor Natalie Magdeburger, however, expressed disappointment and urged county leaders to keep fighting the ruling. “I’m disappointed, and I hope Sussex County will continue to pursue it,” Magdeburger said.
She also warned the decision could have consequences beyond this specific project. “We think that it’s a poor ruling that will really have adverse effects on all of us, and it could be a springboard for other issues,” she said.
A spokesperson for Sussex County Council said the county is still reviewing the decision and will withhold comment at this time. Delaware Attorney General Kathy Jennings praised the decision, calling it a win for ratepayers.
“Delawareans are paying more for electricity than ever — and the last thing they need is a political fight obstructing the homegrown energy that will lower their bills,” said Jennings. “Today’s ruling makes clear that Delaware’s energy future is a statewide issue that should be decided by the whole state — not one municipality. We’re going to keep fighting to protect this project and the affordable, reliable energy it will deliver to every Delawarean."
In response, Delaware lawmakers passed Senate Bill 159 in June 2025. The law prevents counties from denying permits for electrical substations that meet specific siting requirements, which this project satisfies.
Magdeburger also raised concerns about local control, arguing the ruling undermines zoning authority. “Suddenly, we’ve lost the ability to zone in a manner that is best for the constituents who live in the area and vote for the representatives,” Magdeburger said.
She also voiced strong opposition to offshore wind development, citing environmental and economic concerns. “I think it is devastating to move forward with these wind farms on our environment. I think it’s devastating to our local economy. It’s going to basically wipe out our commercial and recreational fisheries and our national security,” Magdeburger said.
The court rejected multiple arguments from Sussex County and Fenwick Island, including claims that the law violated separation of powers and improperly targeted a specific project. The ruling affirmed that zoning authority ultimately rests with the General Assembly.
The substation would serve as a point for power cables for the proposed offshore wind turbines to the regional power grid, allowing electricity generated at sea to reach Delaware customers.
The attorney general said the project comes at a crucial time, as Delaware produces far less energy than it consumes and relies heavily on imported power. Regional grid operator PJM has warned that electricity supply could fall short of demand as early as this summer.
The broader US Wind project is projected to lower electricity costs for Delaware ratepayers by hundreds of millions of dollars over the life of the project, provide $3.75 million per year in free renewable energy credits, invest more than $400 million in upgrades to the regional transmission grid, and contribute $40 million to coastal resilience, workforce development, and community benefit funds, according to the state.
The 38th District Republican Club PAC has called on Sussex County Council to appeal the chancery court ruling.
"It is about whether Sussex County retains meaningful authority over what happens along its own coastline, or whether that authority can be overridden whenever it is inconvenient to state policymakers," said Michelle Parsons in a statement on the PAC's website.
US Wind responded to the ruling having said it reinforces the validity of state law.
"With electricity demand and electricity bills skyrocketing at unprecedented rates, it is critical that fully permitted projects like ours be allowed to move forward. We are grateful to the Governor, Attorney General Jennings, and the Delaware General Assembly for their stalwart support," said Nancy Sopko, US Wind's Vice President of External Affairs.
