Delmarva Power (DPL) will seek a nearly $63 million electric rate increase in Delaware.
The utility, which was recently acquired by Exelon, filed a petition with the Delaware Public Service Commission to authorize an electric base rate hike of $62.8 million and a gas base rate increase of $21.5 million,
The company cited the need for improvements in the electric system include upgrading four substations with advanced automation equipment that allows DPL to pinpoint outages and send crews directly to the specific source of the damage, allowing the company to restore power more quickly, a release stated.
Improvements also include replacing hundreds of miles of wire with sturdier, more weather-resilient wire to help prevent power outages.
“In today’s technology-driven society, dependence upon a reliable electric grid has never been greater. A reliable and modern energy system is what Delaware needs to continue to attract and retain healthy businesses in the state,” said Gary Stockbridge, president of Delmarva Power. “Our customers are seeing better performance as a result of the reliability improvements and smart infrastructure investments we have made to our system. With cost-efficiency in mind, we have made practical decisions to invest in the areas that needed to be upgraded the most.”
If the request is approved as filed, the bill for a typical residential customer using 1,000 kWh will increase by $10.23 per month to a total bill of $151.34.
Rate increase figures will vary for businesses, according to Delmarva spokesman Nicholas Morici, who added that it was difficult to provide an average figure, given the wide range of power needs of companies.
The rate request is subject to a Delaware Public Service Commission review process that could take nine to 12 months. The utility has not seen a rate increase in three years. The previous rate increase granted by the PSC was much lower than the amount sought, with regulators claiming the proposed rates did not result in enough gains in reliability to justify the added costs.
In announcing the rate increase request, Delmarva noted that it has invested $222 million into its electric system since 2013, and customers are benefiting from those investments. These investments have produced a 17 percent drop in the number of outages and a 44 percent increase in the speed in which outages are restored, the release noted.
The natural gas rate adjustment is also subject to the DE PSC approval. If approved as filed, the typical residential customer using 120 ccfs would see an increase of $13.55 per month for a total bill of $143.22.
DPL has invested over $120.9 million in upgrades to the gas system since 2013. Delmarva Power has modernized the gas-delivery system by replacing approximately five miles of old steel mains, two miles of plastic mains, approximately 20 miles of cast and ductile-iron mains, and 38 miles of (3,500) worn steel and copper services to residences and businesses.
Additional gas-related capital expenditures are primarily the result of planned equipment replacements and upgrades to improve operational performance and safety systems.
“Replacing old gas main and worn services ensures the safety and integrity of our gas system,” Stockbridge added. The Delmarva gas system is located in northern Delaware.
Delmarva cited its Peak Energy Savings program started in 2012 as a way for customers to lower their bills.
DPL participating customers have saved more than $7 million on their energy bills. In addition, customers can take a variety of energy-savings steps to save money, such as raising or lowering thermostats two or three degrees, turning off lights in unoccupied rooms and using compact fluorescent or LED light bulbs.
Delmarva also reported that from 2011 to 2015, electric energy prices have dropped by about $11, and natural gas prices have fallen by about $40.
A merger between Delmarva power parent Pepco and Exelon was recently completed, with Delmarva not seeking a rate increase request during the lengthy review period for the merger.
A merger between the successor Delmarva and Pepco in 2002 led to a lengthy rate freeze as a condition of the deal. However, Delmarva ratepayers later faced a nearly 60 percent rate increase during a period when energy prices were rising rapidly.
This time around, Delmarva residential customers received a $170 credit on their bills, with no rate freeze.
For more information about Delmarva Power, visit www.delmarva.com.
