UPDATED: Gov. Meyer Asks DE PSC to Suspend Upcoming Delmarva Power Rate Increase; Response from Delmarva Power
Governor Matt Meyer is calling on the Delaware Public Service Commission to suspend the upcoming Delmarva Power rate increase on July 9th – and to keep Delmarva Power’s distribution rates at their current level while the latest request by the utility for a rate hike is reviewed by the PSC. Governor Meyer told the PSC that if the rate increase goes into effect, there is a high likelihood the temporary rate would exceed what the Commission ultimately determines to be just and reasonable.
Additional information from Gov. Meyer:
“For too long, Delaware families have been asked to absorb one rate increase after another while utilities continue to rake in record profits,” said Governor Matt Meyer. “Temporarily suspending another rate hike request from a $48 billion monopoly is more in the public interest than shifting the costs to hardworking families that are deciding between paying their utility bills, their rent, or buying groceries this summer. The Public Service Commission exists to protect the public interest, and now is the time to use every tool available to make sure Delawareans aren’t paying more than they should.”
The Governor said Delmarva Power’s repeated rate increase requests have contributed to an affordability crisis for Delaware families, seniors and small businesses. He noted that across the utility’s seven most recent base rate cases, the Commission ultimately approved less than what Delmarva requested.
Meyer also cited concerns raised during this year’s legislative session about the utility’s resource planning and argued that the current case is the first to be reviewed under Delaware’s prudence standard rather than the more deferential business judgment standard.
The letter notes that low- and moderate-income households already spend up to 10% of their income on energy costs. Meyer also noted that Delmarva transferred more than $200 million in profits to its parent company, Exelon, last year while projecting annual earnings growth of 5% to 7% through 2029.
The Governor asked the Commission to pause the interim rate increase, protect customers from paying rates that may later be reduced, and require Delmarva to demonstrate that its requested costs were prudently incurred.
Meyer also requested that the letter, along with constituent complaints received by the Governor’s Office regarding rising electricity costs and supporting news coverage documenting Delaware’s energy affordability challenges, be entered into the official record of the Commission’s pending proceedings.
Below please see Delmarva Power’s response to Gov. Meyer’s press release issued earlier today:
Statement:
Our customers and communities are at the center of everything we do, and Delmarva Power is committed to helping customers manage higher energy bills while continuing to provide safe and reliable service. We are evaluating the Governor’s request and working with stakeholders to assess additional options that could provide further customer relief this summer.
As part of this effort, we have already filed a reduced interim delivery rate with the Delaware Public Service Commission on June 9 that provides approximately $11 million in residential customer relief — about $3 per month for a typical customer, compared to more than $6 under the full amount allowed by law.
These rates, which will be subject to adjustment when the case is decided, reflect investments already made to maintain a safe, reliable grid and replace aging infrastructure. As a result of these efforts, customers have experienced a 28 percent reduction in outages over the past decade, and the system has performed more reliably during major weather events, including recent winter storms and heat waves. Additionally, a stronger, more resilient grid also plays a critical role in supporting economic development, helping attract new businesses, enabling job growth, and ensuring the region has a reliable energy infrastructure needed to compete and grow.
It’s also important to note that recent increases in customer bills are largely driven by supply costs set through regional energy markets and outside of our control, not delivery charges. While there have been claims about company earnings, since 2016, about 80% of profits have been reinvested in Delaware to support reliability and operations.
We recognize affordability remains a top concern and will continue working with policymakers and stakeholders on solutions while delivering the reliable service customers expect.