FENWICK ISLAND, Del. - Delmarva Power customers in Delaware could see higher monthly electric bills as the utility seeks a nearly $67.8 million rate increase to help cover grid maintenance and supply costs.
A public hearing on the proposed increase was held this week as customers and business owners raised concerns about the effect higher utility costs could have on their budgets.Â
If approved, Delmarva Power says the rate increase would add about 4%, or approximately $6 per month, to the average residential customer's bill. The proposed increase applies only to Delmarva Power customers in Delaware.
For businesses in Delaware's beach communities, even a relatively small increase in operating expenses can create additional financial pressure.
"It's very tough to get around, especially when we have customers that are coming down on vacation," said Lance Burris, owner of House of Sauce in Fenwick Island.
Burris says higher utility bills could force businesses to find ways to offset the added expense, potentially including higher prices.
"Everything's based off percentages," Burris says. "So, if my utilities bill goes up a couple percents, I've gotta figure out how to cover that cost. So it's either raise my prices of food or drinks to customers, and then we have less customers."
The utility company says the additional revenue is needed in part to maintain and replace aging equipment and to address supply costs.
"We always have a list of projects or customers that have equipment that's degrading that needs to get done," says Marcus Beal, Delmarva Power's region president.
Beal tells CoastTV that the company recognizes customers are already dealing with higher costs for necessities such as groceries, but maintaining the electric grid requires continued investment.
"We want to get to the solutions, right," Beal says. "It's OK for everyone to understand that, hey, this is a problem. You know, we can't see rates increase. But we don't want to be in a situation where we stop maintaining the grid to keep costs low."
Delmarva Power introduced an interim rate increase of about $3 per month in July. The company says that if the Delaware Public Service Commission does not make a decision on the rate case by Dec. 9, the interim increase would rise by another $1.50 per month.
