The Delaware Public Service Commission has approved changes to Delmarva Power’s practices in commercial rate classifications.
The changes that affect more than 5,000 customers came after the PSC and the state Public Advocate investigated the situation. Delmarva Power also joined the process as it began preliminary work on a proposed rate increase.
The difference in commercial rates can add up to hundreds of dollars a month.
The typical practice among utilities, cable TV companies, cell phone providers and many other businesses is to put the burden on customers to request the new rates.
Higher and lower electric usage, new equipment and energy conservation measures can have an impact on rates for businesses and other organizations.
Along the way, it became clear that mass conversions to lower or higher rates require a manual process and in some cases new electric meters.
The changes are as follows, according to Delmarva.
- Delmarva will immediately begin to implement the changes approved by the Public Service Commission and will be notifying all commercial customers that are potentially eligible for a different service classification by May 1, 2020.
- Delmarva is already working on the upgrades to our billing system and customer service processes that are needed to efficiently move the approximately 5,200 eligible customers to new service classifications without the requirement to exchange customer meters. (Currently, the process to move commercial customers to a lower or higher service classification is a manual process that includes sending a technician to the service address and changing the existing electric meter). Our new process will minimize the need to visit a customer’s address, in accordance with Gov. Carney’s COVID-19 pandemic restrictions.
- Commercial customers eligible in the MGS-S and LGS-S service classifications that are eligible for electric service under a lower rate classification will be transferred to a lower rate classification beginning with their June 2020 meter reading, with their July 2020 bill reflecting the new service classification and the new billing rate.
- The approved adjustments to the tariff will also help enhance customer service by making the transfer of eligible MGS-S and LGS-S customers to a lower service classification automatic. Previously, a customer could contact the company at any time to request a review of their account. If they were eligible for a lower rate, the request was processed. Now, once a customer is eligible, the customer will be automatically transferred to the lower service classification, effective the date the customer becomes eligible for the new rate and reflected in the subsequent billing month.
- The updated tariff also clarifies the process for selecting service classifications for customers that begin service at a location previously occupied by a commercial customer. We are updating our process to better educate new customers about their options and then work with them to select a service classification. While we are enhancing our process to assist customers in selecting the most advantageous service classification, customers are still responsible for making the selection of which service classification best meets their energy needs.
The PSC delayed the start of our regulatory rate review to ensure that the revenue changes from the commercial service classification order are reflected in the regulatory rate review.
Delmarva stated that the utiiity will “continue to work with the commission staff and Delaware Public Advocate to ensure this process moves forward without further delay and we are able to update electric delivery rates in a timely manner to reflect the costs associated with reliability improvements to the local energy grid, along with new technology we have implemented to meet customer needs and growth in Delaware.”
