The Delaware Public Service Commission (PSC) announced public comment sessions in the process of determining if Delmarva Power and Light Company’s request spend nearly $400 million over the next five years to improve reliability is necessary. Delmarva Power serves customers in the state’s three counties.
On March 22, Delmarva Power filed an application with the Delaware Public Service Commission seeking an increase in electric rates. The total revenue increase requested by Delmarva Power is $42 million or 23.8 percent over existing retail distribution rates. In addition, Delmarva Power stated that it intends to invest approximately $397 million in its distribution system over the next five years to replace infrastructure and enhance system reliability.
On May 7, the Public Service Commission opened PSC Docket No. 13-152 to investigate whether Delmarva Power’s proposed expenditures for infrastructure and reliability improvement are consistent with Delmarva Power customers’ needs and the ability of Delmarva Power customers to pay for such an investment.
If Delmarva Power made the proposed $397 million investment in the distribution system, the PSC staff estimates the distribution portion of an average residential customer’s bill could increase almost 30 percent, or $11.36 per month, by 2017. The distribution charge is a small portion of the electric bill.
This is in addition to the forecasted supply cost increases that the General Assembly has mandated as part of the 2010 Renewable Energy Portfolio Standard legislation.
The PSC announced it wants to determine if customers want to see the investment in return for improve reliability. Delmarva officials have said they also want input the cost/reliability issue. Electric power rates have also become an economic issue, with global warming skeptics claiming high rates are driving away business.
The PSC noted that the utility currently meets reliability requirements. At the same time, there is growing concern that if the system is not strengthened, the Delmarva system would be ill equipped to deal with severe storms like Hurricane Sandy. The brunt of that storm did not hit Delaware. The public interactive discussion forums and comment sessions will be held at the following times and locations:
4 p.m., Thursday, September 26, 2013 Public Service Commission – 861 Silver Lake Blvd., Suite 100 Hearing Room Dover.
5:30 p.m. – Thursday, October 3, 2013 – Delaware Tech (DTCC) Jack F. Owens Campus, Electra Hall – William Carter Partnership Center, Rt. 18 Seashore Highway, Georgetown.
7 p.m. – University of Delaware – Arsht Hall – 1st Floor, Rooms 108 & 109, 2600 Pennsylvania Avenue, Wilmington.
Further information regarding the investigation can be found on the Delaware Public Service Commission website (www.depsc.delaware.gov) by referencing docket number 13-152. Written comments can also be sent to: Delaware Public Service Commission, 861 Silver Lake Blvd., Suite 100, Dover, DE 19904, Attn: Docket 13-152.
