Delmarva Power, gained a rate increase of $22 million in a controversial case that included unhappiness over the costs of “smart meters.”
The Pepco Holdings company said thei increase granted by the Delaware Public Serivce Commission was needed to maintain and improve the reliability of an electric system that covers much of the state.
The commission aproved nearly $1.1 million per year in recovery costs for Delmarva’s Advanced Metering Infrastructure. This recovery was permitted after it was determined by the commission staff that Delmarva’s new metering system has achieved over $5 million in savings for customers to date.
Those costs include an end to meter reading.
Critics have claimed that customers should no absorb costs related to the meters.
According to a Delmarva release, a residential customer using 1,000 kilowatt-hours per month would see his or her bill increase by $4.73 to $141.59 or approximately 3.2 percent per month.
Since a temporary rate increase went into effect in July 2012 and the increase approved by the Commission on December 18th is less than the temporary increase, the typical residential customer will actually see a decrease of about 34 cents per month starting in January 2013.
“Delmarva Power remains committed to delivering safe, reliable electric service at reasonable rates,” said Delmarva Power Region President Gary Stockbridge. “This rate adjustment helps cover the rising cost of maintaining our infrastructure and improving our electric delivery system,” added Stockbridge.
Delmarva Power reported it is investing about $357 million for maintaining and enhancing reliability over five years. The utility has beefed up investments as its system agess.
The increase covers the cost of delivering the power. Under deregulation, Delmarva does not profit or lose money from the actual costs of the power, which it buys from other companies.
Delivery rates reflect about 25 percent of a customer’s bill.
Auctions are held annually, with the lowest bidder winning the right to supply electricity to Delmarva Power’s customers over a specified period.
Customers with questions regarding billing and/or the rate adjustment can contact the Delmarva Power Customer Care Center at 1-800-898-8042 or visit www.delmarva.com.
