Delmarva Power files request for $72.3 million rate increase

Delmarva Power filed an application with the Delaware Public Service Commission Dec. 15 to increase its electric distribution rates by $72.3 million. Pursuant to state law, this increase will become effective on a temporary basis July 15, subject to refund, pending a final decision by the Public Service Commission.  

Delmarva Power’s request for an increase in electric distribution rates comes on the heels of a $16.7 million increase approved by the Public Service Commission in August 2021.

If approved as requested, Delmarva Power residential and residential electric space heating customers will experience an additional increase of 8.35% and 13.2%, respectively, in their electric distribution charges. A typical residential non-space heating customer using 844 kWh per month would see an additional increase of $10.41 per month to their total bill, and a residential space heating customer would see an additional increase of more than $11 per month to their total bill. 

“As customers are struggling to pay bills, Delmarva Power is seeking one of the largest electric distribution rate increases we have ever seen,” said Delaware Public Advocate Andrew Slater. “Simply put, reliability is extremely important, but so too is affordability. No customer should have to choose between paying for their utility service or paying for other essential needs. It’s long past time costs are reined in, just as many of their customers are trying to do.”

This requested distribution rate increase of roughly 25% follows a nearly 60% increase in natural gas supply rates over the past two years.

In a press release, Delmarva Power said the proposed rate increase reflects the company's ongoing efforts to strengthen the local energy grid against more frequent and severe weather, meet evolving customer expectations for reliability, and address economic impacts caused by inflation and material cost increases. 

Since the last electric rate request in 2020, the Delmarva Power service area has seen increased impacts to the local energy grid, including Tropical Storm Isaias and an EF-1 tornado and straight-line wind event in northern Delaware in August 2020. In the face of these increasing weather impacts, Delmarva Power has invested in its system to make it smarter, stronger, cleaner and more resilient, to help mitigate flood risks, repair and replace equipment that was damaged from storms, and further modernize equipment, the press release said. 

The Public Service Commission will hold a public comment session once a procedural schedule is established. Written comments may be sent by mail to Delaware Public Service Commission, Docket No. 22-0897, 861 Silver Lake Blvd., Suite 100, Dover, DE 19904, or by email to psc@delaware.gov, Attn: Docket No. 22-0897.

Delawareans can contact Energize Delaware about its Home Performance with Energy Star and Home Energy Counseling and Check-Up programs. These programs could potentially produce energy savings. Consumers may learn more at https://www.energizedelaware.org/.

Additional programs, such as weatherization and the Low-Income Home Energy Assistance Program may be able to help customers save on energy costs. Customers can review eligibility requirements for both programs by calling 302-504-6111 for the Weatherization Assistance Program and by calling Catholic Charities for LIHEAP assistance at 302-654-9295 (New Castle County), 302-674-1782 (Kent County) or 302-856-6310 (Sussex County).