DELAWARE - As a deadline nears, Governor Matt Meyer is once again calling on the Delaware Public Service Commission to keep Delmarva Power's rates as they are. The commission is reviewing the latest request for a rate increase.
Meyer suggested that regulators use their authority under 26 Del. C. § 310 to prevent an interim rate increase from taking effect on July 9.
“Temporarily suspending another rate hike request from a $48 billion monopoly is more in the public interest than shifting the costs to hardworking families that are deciding between paying their utility bills, their rent, or buying groceries this summer. The Public Service Commission exists to protect the public interest, and now is the time to use every tool available to make sure Delawareans aren’t paying more than they should," said Meyer.
The governor said Delmarva Power’s repeated rate increase requests have contributed to an "affordability crisis" for Delaware families, seniors and small businesses. Meyer also cited concerns raised during this year’s legislative session about the utility’s resource planning and argued that the current case is the first to be reviewed under Delaware’s prudence standard rather than business judgment standard.
However, Delmarva Power tells CoastTV that it is working with stakeholders to assess other ways the utility could provide more relief this summer.
"As part of this effort, we have already filed a reduced interim delivery rate with the Delaware Public Service Commission on June 9 that provides approximately $11 million in residential customer relief — about $3 per month for a typical customer, compared to more than $6 under the full amount allowed by law," said Matthew Ford for Delmarva Power.
According to the governor's letter, low and moderate-income households already spend up to 10 percent of their income on energy costs. Meyer also noted that Delmarva transferred more than $200 million in profits to its parent company, Exelon, last year while projecting annual earnings growth of 5 percent to 7 percent through 2029.
Yet, the utility said these rates have helped to maintain a "safe, reliable grid and replace aging infrastructure." According to Delmarva Power, customers have experienced a 28 percent reduction in outages over the past decade, and the system has performed more reliably during major weather events, including recent winter storms and heat waves.
"It’s also important to note that recent increases in customer bills are largely driven by supply costs set through regional energy markets and outside of our control, not delivery charges," said Ford. "While there have been claims about company earnings, since 2016, about 80 percent of profits have been reinvested in Delaware to support reliability and operations."
Meyer also requested that the letter, along with constituent complaints received by the governor’s office regarding rising electricity costs documenting Delaware’s energy affordability challenges, be entered into the official record of the commission’s pending proceedings.
