Delmarva Power files two requests with Public Service Commission
Delmarva Power submitted two filings Dec. 9 to the Delaware Public Service Commission designed to support customer affordability while investing in critical infrastructure to meet Delaware's growing energy demands.
The filings include a proposed Affordability and Load Flexibility Portfolio that provides customer savings and helps address rising energy supply costs that are a result of inadequate power generation resources across the region. The second filing is a comprehensive rate review request that supports essential energy grid reliability investments, and introduces a new low- to moderate-income rate to support customer affordability.
"Costs continue to rise across the board for families and businesses for nearly every good and service. We understand that reality, and are balancing this with the necessary and prudent investments we are making to the local energy grid to deliver the reliable energy service our customers count on to power their lives,” said Marcus Beal, Delmarva Power region president. “The programs we are proposing and investments we are making in the grid are designed with our customers at the forefront, and to deliver the reliable energy they expect and deserve.”
Delmarva Power’s proposed Affordability and Load Flexibility Portfolio will help reduce the stress and impact customers are facing from rising energy supply costs through incentives that help customers change how and when they use energy. The proposed programs may help participating customers save from $60 to $100 annually on their bills and result in $13 million in annual net benefits for all Delmarva Power customers.
The variety of programs and different levels of financial incentive are designed for the needs of multiple types of customers. Available options include:
• Bring Your Own Device Smart Thermostat Program – enrolling eligible smart thermostats in demand response events for incentives
• Direct Load Control 2.0 – enabling direct cycling of central air conditioners and heat pumps during peak energy use periods for those enrolled
• Smart Charge Management Program – with customer enrollment, direct management of charging schedules, optimizing system efficiency
• EV-Only Time-of-Use Program – offers time-based pricing exclusively for EV charging, enabling off-peak savings
• Whole Home Time-of-Use Rate – shifts overall household consumption away from peak hours 2 of 8 p.m. toward lower-cost periods
• Bring Your Own Battery Pilot – tests customer-owned battery storage to support peak times and resiliency
• Locational Demand Response Pilot – supports targeted areas with non-wire solutions for grid planning.
The rate review requests approval to update electric delivery rates to reflect investments that are helping ensure customers receive the reliable energy service they expect. The request also includes a proposed new low- to moderate-income rate and a proposal to reduce weather-related bill impacts to support customer affordability. Delaware's energy demand is increasing as the population and local economy grow.
Through targeted investments, including new technology, Delmarva Power is building a grid that reduces the impact of outages, restores power faster when interruptions occur, and is better equipped to meet growing demands for electricity and increasing severe weather impacts.
Critical grid investments include equipment replacement and upgrades, and site-security measures at selected substations; moving power lines underground for better safety and accessibility; and investigating homes and businesses experiencing repeat outages and installing new equipment, stronger fuses or tree-resistant wiring based on the cause.
Since the company's last rate review, which covers the period from July 2023 to June 2026, Delmarva Power will have spent $480 million in critical capital investments to the local energy delivery system to improve system performance, enhance resiliency and improve service reliability. Because of these investments, Delmarva Power customers across Delaware have experienced a 47 percent decrease in outages over the last 10 years.
“Many households across Delaware are feeling the strain of higher living costs, and access to safe, reliable energy remains a basic necessity,” said United Way CEO Michelle Taylor. “Delmarva Power works every day to modernize the local energy grid while expanding outreach and support for customers who need help. This reflects a real commitment to equity. From their infrastructure improvements to their partnerships on energy-assistance programs, the company is taking meaningful steps to support communities that are often most vulnerable to rising costs.”
The rate review includes efforts to provide more consistent and predictable energy delivery charges on a customer’s bill through a Bill Stabilization Adjustment. The BSA is a common approach utilities use for billing that helps reduce the impacts of extreme weather on customers’ electric bills while ensuring that Delmarva Power does not earn more or less than what is approved, even when customer energy use changes.
The company has requested an enhanced rate option for low- to moderate-income customers, providing a 20 percent discount on the delivery portion of the bill for customers eligible for Low-Income Home Energy Assistance Program or the Delaware Energy Assistance Program.
There are no immediate bill impacts to customers as a result of the two filings. If approved by the PSC as filed, the average residential customer using 810 kWh per month would see a gradual bill increase over three years, beginning at $0.13 in 2027, increasing to $0.39 in 2028 and $0.59 in 2029 for the Affordability and Load Flexibility Portfolio and approximately $6, or 4 percent, for the rate review request.
The Delaware PSC will review both filings through its established regulatory process, which includes opportunities for public input and stakeholder participation. For more information about this proposal and updates on the regulatory process, visit delmarva.com/rates.
