Delaware energy officials approve Delmarva Power interim increase – kind of

• Delaware energy officials approved only a portion of Delmarva Power’s requested rate increase.
• Gov. Matt Meyer urged the Public Service Commission to freeze rates, citing pressure on Delaware families.
• Lawmakers passed Senate Bill 326 to limit infrastructure spending and enhance rate transparency.
• Ratepayers will see an initial increase of about 67 cents on electricity bills, with a total increase of about $5 expected later.

Following a series of actions related to rising power bills, Delaware energy officials signed off on only a piece of Delmarva Power’s rate increase request.  

The decision was made roughly two months after Gov. Matt Meyer appointed four new members to the Public Service Commission, the entity responsible for weighing in on rate-related petitions presented by private utility corporations, as reported by Spotlight Delaware.  

Meyer has since doubled down, urging the commission to freeze Delmarva rates ahead of an interim hike that was set for July 9. The Democrat said in an announcement there is a “high likelihood” the temporary rate will exceed what the state legally considers to be a reasonable, just return on equity for the company, as previously reported by Delaware Online/The News Journal. 

Delmarva Power is considered the state’s main power source, and oversees electricity and natural gas in thousands of homes and businesses across Delaware, most notably in New Castle County.  

More: How utility prices have ‘gotten out of hand’ in Delaware

The utility has also come under fire recently, as elevated electricity and natural gas rates have placed continued pressure on consumers.  

Meyer noted this when calling for the rate freeze. 

“For too long, Delaware families have been asked to absorb one rate increase after another while utilities continue to rake in record profits,” Meyer continued. “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.”

It isn’t just Meyer. Delaware lawmakers have introduced and passed a series of bills centered around energy and utilities this session. This includes Senate Bill 326, which would limit Delmarva’s infrastructure spending, enhance rate transparency and utility communication and caps how much utilities can claim with interim rates, to name a few provisions. 

This bill builds off previous legislation signed into law last year, which limits yearly capital costs retrievable by Delmarva.    

The bill managed to clear both chambers by the last day of session, and now awaits Meyer’s signature.  

But even before these moves were made, Delmarva slashed its most recent request in half last month – its third request in five years, as previously reported by Spotlight Delaware.

Despite this, commission members believed it wasn’t enough, especially as Delaware was on the verge of a massive heat wave. 

In other news: What made it into the Delaware operating, bond bills this fiscal year?

“It’s particularly cruel for people to not only wonder how they are going to survive this … but then also think about the electric bill that’s about to come,” commissioner Michael Richard said during a July 1 meeting centered on the increase. 

At the end of the day, the commission determined they could not freeze these rates completely. Instead, they decided to move forward with approving a portion of Delmarva’s request.  

This will mean that First State ratepayers will see an increase of about 67 cents on their electricity bills, an increase that went into effect July 9, according to Delmarva Power Regional President Marcus Beal.  

A spokesperson for Meyer’s office confirmed this, saying the commission moved to approve a rate that is 50% less than what Delmarva initially proposed.

But residents shouldn’t get too comfortable.  

Beal said the case regarding the request is still ongoing. He added that, while average ratepayers may have to pay only under a dollar more for the time being, residents will see a roughly “$5 total increase” by the time the case is over.  

Delaware Division of the Public Advocate Regulatory Policy Administrator Andrea Maucher told Delaware Online/The News Journal that there is also a second interim increase on the horizon, scheduled for December.

Because the company cannot change rates randomly, they need to go through a process with the commission – like a court case, Beal said.  

Once everything is validated, commission members will present a final ruling.  

While there is no set date as to when this ruling will be issued, Beal said this typically falls somewhere between one and two years.

What’s next for help

In the meantime, Delmarva is scheduled to host three Customer Relief Fund events later this summer:

• Wednesday, July 29, at Rose Hill Community Center in New Castle
• Thursday, July 30, at Frankford Public Library
• Thursday, Aug. 6, at Life in the Word Christian Ministries in New Castle

All events will take place from 4 p.m. to 7 p.m.

Reporter Shane Brennan contributed to this story.

Olivia Montes covers state government and community impact for Delaware Online/The News Journal. If you have a tip or a story idea, reach out to her at omontes@delawareonline.com.