Delmarva Power has applied for a rate increase with the Delaware Public Service Commission.
Cited as the reasons for the rate hike are efforts to strengthen the local energy grid against severe weather, meet customer expectations for reliability and address economic impacts caused by inflation.
The request is not related to the cost of electricity, which Delmarva buys on a break-even basis. Delmarva buys electricity on a staggered basis to minimize
In making its case for the rate hike during a period of high inflation, Delmarva stated that it is committed to working with customers to help manage their energy use and points to programs for lower-income customers struggling to pay their bills.
Delmarva Power is seeking to recover nearly $60 million in investments. The typical residential customer, using an average of 844 kWh per month, would see a $10.41, or 8.35 percent, increase on their bill beginning July 15, 2023. This change is subject to refund once the PSC makes a final determination on rates.
Delaware utility regulators, in the past, have been skeptical of further improvements to the local grid, citing the diminishing returns in a period when electric reliability has moved above the 90% mark. At the same time, customers have become more dependent on electric power for their computers and other equipment.
Delmarva Power continues to encourage customers to apply for energy assistance and take advantage of the tens of millions of dollars that remain available through programs such as the Low-Income Home Energy Assistance Program (LIHEAP), which began accepting applications for the current program year on October 1. Customers can visit delmarva.com/EnergyAssistance or call 800-375-7117 to learn about additional energy assistance programs.
“The need for reliable energy service is more important than ever for our customers and we are laser focused on meeting customers’ needs while also maintaining reasonable rates.” said Doug Mokoid, Delmarva Power region president. “Our region has experienced higher costs for goods and services and ongoing climate-related impacts that make this request necessary to allow us to continue delivering the quality service our customers deserve.”
Since the last electric rate request in 2020, the Delmarva Power service area has seen increased impacts to the local energy grid, including Tropical Storm Isaias and the EF-1 tornado and straight-line wind event in northern Delaware in August 2020. In the face of these increasing weather impacts, Delmarva Power has invested in its system to make it smarter, stronger and cleaner and more resilient, to help mitigate flood risks, repair and replace equipment that was damaged from storms and to further modernize equipment, a release stated.
Also cited by Delmarva:
- Last year alone, Delmarva Power purchased $112 million in goods and services from diversity-certified suppliers, which accounted for 30 percent of the company’s total yearly purchases.
- The company provides approximately $1.2 million annually to area nonprofits, while employees volunteered nearly 15,650 hours at 200 different events and organizations in 2021.
- Delmarva Power supports local colleges and students, providing $150,000 in grants to Delaware State University and $50,000 to Delaware Technical Community College, in support of scholarships, research, workforce development and certification programs.
