Earlier this month, the Public Service Commission granted the Division of the Public Advocate’s (“DPA”) petition to reduce Tidewater Utilities, Inc.’s rates pending further review.
Tidewater is owned by a New Jersey-baed company.
“No regulated utility should be allowed to earn above its authorized rate of return. While Tidewater opposed our petition, I’m delighted the commission agreed with our position to reduce rates to a just and reasonable level for Tidewater’s customers. On behalf of Tidewater’s 47,000 customers, I want to thank the Commission for its decision,” said Delaware Public Advocate Andrew Slater.
The petition, filed by the Public Advocate on June 22, called for a reduction in rates due to Tidewater earning more than its commission-approved rate of return of 7.92 percent. Tidewater has been over-earning since at least 2017, and previous measures to alleviate its overlearning were not successful.
Tidewater customers will see a temporary reduction in their rates of up to 6 percent amounting to more than $2.2 million. The projected reduction per customer is estimated to be more than $10 per quarter.
Tidewater has approximately 47,000 customers in parts of New Castle, Kent, and Sussex Counties.
The Division of the Public Advocate advocates for reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes, a release states.