Delmarva Power asked the Delaware Public Service Commission (PSC) to authorize a delivery rate increase of about $42 million to help pay for improvements to its electric system.
The base rate adjustment is subject to approval of the Public Service Commission.
In a release, Delmarva says it has worked to enhance system reliability; improve its response to major storms; improve customer service and customer satisfaction and develop mechanisms to assist customers with energy management.
“We are committed to improving reliability for all of our customers,” said Gary Stockbridge, Delmarva Power Region 0resident. “The rate adjustment request, if approved, will allow Delmarva Power to continue ongoing reliability commitments to our customers through infrastructure investments.”
If the rate hike is approved a residential customer using 1,000 kilowatt hours per month would see a total monthly bill increase of approximately $7.63, or $141.23 to $148.86 per month. That would represents a nearly 5.4 percent increase over rates currently in effect.
Delmarva Power expects to invest approximately $397 million from 2013 to 2017. A large portion of this amount would be used for reliability upgrades, the utility stated.
Under deregulation, Delmarva charges customers for the cost of delivering power. Customers can buy power from Delmarva or another supplier. However, the delivery charge affects all customers in the Delmarva service area.
Delmarva Power will implement an interim $2.5 million adjustment effective June 1, 2013 while regulators review the full revenue request. The interim rate increase is allowed under state law.
