UPDATED: Delmarva Power Files Request For $67.8 Million Base Rate Increase & Statement from Senate President Pro Tempore Dave Sokola

Delmarva Power and Light has filed an application with the Delaware Public Service Commission to increase its total revenue from base rates by $67.8-million compared to rates that were approved in 2024. These interim rates would be effective July 9, 2026. Delaware law allows utilities to implement the new rate on an interim basis – subject to refund pending the outcome of the case. Also new electric supply rates will go into effect on June 1, 2026. As part of this application – Delmarva Power is seeking an increase in the monthly customer charge from $13.50 to $15.94. The application will be reviewed in a Commission docket before a hearing examiner before being presented to the Commission – likely in late 2026. This is Delmarva Power’s third electric base rates application since 2020.

Additional information from the Delaware Public Advocate:  
Of the $67.8 million increase, $44.6 million sought is new revenue and $23.2 million is already being paid by Delmarva customers through Distribution System Improvement Charge (DSIC) rates. 

This application is Delmarva’s third electric base rates application in the span of roughly five years (2020-2025), which have collectively sought $160 million in addition annual revenue from Delmarva customers, although significantly less has been allowed by the Commission. Delmarva also filed a request for a multi-year rate plan, which it ultimately withdrew.

Delmarva has estimated that a non-space heating customer using an average of 810 kWh will see an average increase of $6.42 per month (or a 4.13% increase in their total bill) from this request.  However, Delmarva’s calculation excludes amounts included in DSIC rates (which are incremental rate increases between rate cases that Delmarva has already implemented).  Other portions of customers’ bills have also increased in recent years, including costs that are passed through to customers including electric supply costs and capacity costs, which have risen rapidly. 

The Division of the Public Advocate (DPA) believes a better comparison is (1) to exclude DSIC rates and instead compare to the rates approved in the last rate case, and (2) to compare to the base rates from the last rate case, not as a percentage of a customer’s overall bill.  As compared to the rates approved in the last rate case, a non-space heating customer using an average 830 kWh per month will see an increase in their base rates of $9.30 per month or 16.2%, and a space heating customer using an average 1054 kWh per month will see an increase of $15.63 per month or 23.7%. 

“If granted by the Commission, this request would significantly increase electricity bills for Delmarva customers, at the same time they are already being squeezed by other rising costs, including rising costs of electricity and natural gas, and rapidly rising regional costs like capacity costs that flow through to customers,” said Jameson Tweedie, Delaware Public Advocate. “Delmarva’s request for a 10.5% return on equity when customers are facing an affordability crisis is a complete non-starter for my office. We will carefully review Delmarva’s application and will vigorously argue before the Commission for the lowest reasonable rates necessary to deliver reliable service.”

Delmarva’s application argues that the increased revenue will support programs to provide its’ ratepayers with dependable, affordable electric services, and that it has made significant investments in infrastructure to maintain the electric grid’s resiliency, among other things. DPA will evaluate these assertions and the appropriateness of such investments.

Delmarva’s application also proposes a new income-based discount rate to customers enrolled in the Low-Income Home Energy Assistance Program or the Delaware Energy Assistance Program. DPA supports programs to reduce utility costs, but DPA’s mission is to represent all residential and small commercial customers and will work to ensure that these discounted rates are implemented in a manner that does not increase rates for other residential and small commercial customers. 

Separately, Delmarva has filed a proposal to seek cost recovery from Delmarva customers for energy efficiency and affordability programs, which will be addressed in a separate docket. DPA believes energy efficiency programs can be an effective tool to allow customers to reduce their electric bills, and supports Delmarva’s affordability goal, but will rigorously evaluate these programs to ensure they deliver benefits to both participating customers and the system as a whole.

“Last winter, Delaware ratepayers were hit with unexpectedly higher electric bills during the frigid winter months, forcing families to scramble to understand the sudden cost increases and how they would afford them. In response, the General Assembly worked swiftly to hold utilities accountable, improve transparency, expand consumer protections and provide relief for Delawareans struggling with rising energy costs.

 

Today, Delmarva Power is asking for permission to raise its prices yet again. If their $67.8 million request is approved, their customers would see significant increases in their electric bills. Instead of providing relief, Delmarva is coming back to ratepayers for millions more, once again expecting families to shoulder the burden. 

 

This request is disconnected from the economic realities facing our constituents and dismissive of the very real strain higher utility costs place on working families. With this request, Delmarva Power is ignoring the impact this will have on families to prioritize its bottom-line.

 

This runs counter to the work our caucus has done to rein in costs, expand our energy portfolio, and make life more affordable for Delawareans. At a time when families are already stretched thin, now is not the time to raise electric bills.”