Delmarva Power rate increase proposal draws criticism

Delaware’s Public Advocate and a top Senate Democrat are questioning a proposed rate increase by Delmarva Power and Light.

“If granted by the [Delaware Public Service] Commission, this request would significantly increase electricity bills for Delmarva customers at the same time they are already being squeezed by other rising costs, including rising costs of electricity and natural gas, and rapidly rising regional costs like capacity costs that flow through to customers,” said Jameson Tweedie, Delaware Public Advocate, in a statement. “Delmarva’s request for a 10.5% return on equity when customers are facing an affordability crisis is a complete nonstarter for my office. We will carefully review Delmarva’s application and will vigorously argue before the commission for the lowest reasonable rates necessary to deliver reliable service.”

Delmarva Power and Light filed an application Dec. 9 with the Delaware Public Service Commission asking to increase its total revenue from base rates by $67.8 million. If approved, Delmarva’s new rate would increase the monthly customer charge from $13.50 to $15.94.

For customers using about 810 kWh electricity and not heat, the bill increase would be about $6.42 a month.

This proposal would add to new electric supply rates already set to go into effect June 1. 

“As compared to the rates approved in the last rate case, a non-space heating customer using an average 830 kWh per month will see an increase in their base rates of $9.30 per month or 16.2%, and a space heating customer using an average 1054 kWh per month will see an increase of $15.63 per month or 23.7%,” Division of the Public Advocate officials said.

In addition, Delmarva has filed a proposal to seek cost recovery from Delmarva customers for energy efficiency and affordability programs, which will be addressed in a separate docket.

Senate President Pro Tem Dave Sokola, D-Newark, released a statement Jan. 12 criticizing Delmarva’s plan to increase rates on customers.

“Last winter, Delaware ratepayers were hit with unexpectedly higher electric bills during the frigid winter months, forcing families to scramble to understand the sudden cost increases and how they would afford them. In response, the General Assembly worked swiftly to hold utilities accountable, improve transparency, expand consumer protections and provide relief for Delawareans struggling with rising energy costs,” Sokola said.

“Today, Delmarva Power is asking for permission to raise its prices yet again. If their $67.8 million request is approved, their customers would see significant increases in their electric bills. Instead of providing relief, Delmarva is coming back to ratepayers for millions more, once again expecting families to shoulder the burden. This request is disconnected from the economic realities facing our constituents and dismissive of the very real strain higher utility costs place on working families. With this request, Delmarva Power is ignoring the impact this will have on families to prioritize its bottom line.

“This runs counter to the work our caucus has done to rein in costs, expand our energy portfolio and make life more affordable for Delawareans. At a time when families are already stretched thin, now is not the time to raise electric bills,” Sokola said.