Interim electric, gas rate hike bill pulled from committee agenda

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Legislation that would allow electric and gas utilities to impose interim rate increases while a rate request  moves  through the Public Service Commission was pulled from a  committee agenda

Drew Slater, public advocate, said is not known if the bill will return to the agenda.

Slater’s office, which reviews and makes recommendations in utility rate cases, was opposed to the measure, which has bipartisan sponsors.

A description of the legislation, a substitute for Senate Bill 80, stated that the bill would reduce the volatility of electric and natural gas rates.

Opponents have complained that lobbyists have been working hard to convince legislators to back the bill.

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Delmarva Power, the state’s largest utility,  has been passing stable or lower electric power charges. However, Delmarva has been making frequent rate increase requests to cover the cost of delivering power.

For many years, increased electricity consumption led to greater revenues and boosted profits,  reducing the need for frequent rate increase requests.

Of late consumption has been down, due to the closing of industrial plants and electricity conservation efforts.

Critics have claimed that the bill is designed to bring about rate increases without adequate reviews.

Also, Public  Service Commission has become more stingy in dealing with rate increase requests.

The legislation requires annual audits and annual reconciliations and allows the staff for the Public Service Commission and the Delaware Public Advocate to review such expenditures and raise concerns with the Commission should they exist.

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