A group of legislators is protesting a proposed $42 million electric delivery rate hike request by Delmarva Power.
The coalition of 20 representatives from both parties sent a letter to the Public Service Commission Tuesday objecting to Delmarva Power’s frequent filings for rate hikes.
“These requests, along with $25 million to replace obsolete smart meters, total approximately $130 million. The three latest approved increases totaled approximately $70 million, which have been borne by struggling households,” the letter states.
Longtime Delmarva critic, Rep. John Kowalko, D-Newark, said that Pepco Holdings, Delmarva’s parent company, has indicated that it wants to speed up the utility’s collection for planned infrastructure improvements in Delaware. This latest increase is being proposed at a time when Pepco is posting a quarterly profit of $43 million, more than double that of a year ago.
Michael A. Begatto, executive director of American Federation of State, County and Municipal Employees Council 81, said AFSCME members already feel the financial strain of recent Delmarva increases.
“The harsh economic times have been especially hard on our membership as they have taken pay cuts, paid higher health care costs and have had to pay higher prices for the essentials of life. Utilities are one of those essentials,” Begatto said. “As utilities continue to pass on their costs to consumers, consumers are forced to make tough decisions about what they can and cannot afford. We oppose these persistent and constant rate increases because they only exacerbate the existing financial burdens on AFSCME members as well as the general public.”
A group of unions and community organizations also expressed concern about the proposed increase.
Delmarva claims the rate increase is needed to ensure the reliability of the electric system. Smart meters have been viewed by the utility as the first step in using technology to reduce energy consumption.
