The staff of the Delaware Public Service Commission and the Division of the Public Advocate announced a settlement Wednesday that will result in a rate reduction of $6.85 million for Delmarva Power customers.
The reduction amounts to an average of $15 a year for residential customers, rather than the expected $65 a year increase. The lower rate comes from the utility passing along savings from recently enacted federal tax cuts.
The settlement resolves a pending rate increase request from Delmarva that initially included $31 million in distribution costs to be passed on to electric consumers.
Earlier this year, the Public Service Commission approved a petition from the Public Advocate requesting a reduction in Delmarva rates as a result of savings realized by the company due to the federal Tax Cuts and Jobs Act enacted last fall. Delmarva had not opposed the plan.
“This is a big deal for our ratepayers. Simply put, this case went from an increase in rates to a decrease in rates thanks to the parties involved in these negotiations and the Commission’s support of our petition to ensure money from tax breaks flowed back to customers in the form of reduced rates,” said Public Advocate Drew Slater.
“Delmarva’s customers win big in this case and the settlement reflects an agreement among the parties that the reduction in federal tax rates are reflected in customers’ bills,” said Raj Barua, executive director of the Public Service Commission.
According to the settlement, instead of an initial proposed $65 per year (4.7 percent) increase for typical Delmarva electric customers, they will see a more than $15 annual decrease in their electric costs (-1.4 percent.)
The settlement has been signed by Delmarva Power, Commission staff, the Public Advocate, and the Delaware Energy Users Group. The Hearing Examiner in this proceeding and the five-member Public Service Commission are responsible for final approval of the settlement.
