Delmarva seeks summer rate hike to fund new $67.8 million revenue

• Delmarva Power has filed a request to increase its fixed monthly customer charge in Delaware.
• The utility cites investments in grid reliability and new customer assistance programs as reasons for the rate increase.
• The Delaware Division of the Public Advocate has raised concerns about the proposal’s impact on household affordability.

With cold weather driving up electricity demand and market prices, Delaware customers can expect higher monthly utility charges. As Delmarva Power and Light promoted bill assistance and energy-saving programs last fall for eligible customers, the utility was preparing a rate request that could increase costs for many more.

On Dec. 9, 2025, the state’s only regulated utility, filed an application seeking to raise the fixed monthly customer charge from $13.50 to $15.94. The request will undergo a formal review, with a final decision expected late next year. However, under state law, utilities may implement proposed rates on an interim basis – subject to refund – while a case is pending.

Delmarva’s interim rates could take effect July 9, 2026.

The filing also comes as new electric supply rates are set to take effect June 1, 2026. In September 2024, Delmarva filed a base-rate increase request of $42 million, which the company estimated would raise the typical residential bill by $13.06 per month, or 23.2%.

The Delaware Division of the Public Advocate has raised sharp concerns about the latest filing, noting it would raise Delmarva’s electric base-rate revenue by $67.8 million above levels approved in its 2024 rate petition. Of that total, $44.6 million would be new revenue, according to the agency. The remaining $23.2 million is already being collected through a surcharge that allows utilities to recover the cost of repairing, upgrading and replacing aging infrastructure outside of regular base rates.

According to the Public Advocate, the December filing marks Delmarva’s third electric base-rate case in about five years. Together, those requests have sought roughly $160 million in additional annual revenue, though regulators have approved significantly less.

Delmarva cites grid investments and assistance programs

Delmarva defended its rate request by pointing to needed funding to support infrastructure investments and customer programs. The company said since its last rate review, covering July 2023 through June 2026, it will have invested about $480 million in the local energy delivery system to improve reliability and resiliency. According to the utility, those investments have contributed to a 47% reduction in outages statewide over the past decade.

Delmarva’s filing also proposes new affordability and load flexibility programs intended to help reduce impact from customer usage during peak periods. The company estimates participating households could save $60 to $100 annually and would generate about $13 million in annual net benefits for customers overall.

Delmarva has also proposed a new income-based discount rate for customers enrolled in the Low Income Home Energy Assistance Program or the Delaware Energy Assistance Program. The Public Advocate said while it supports targeted bill relief, the office will seek to ensure that discounted rates do not shift costs onto other residential and small commercial customers.

Public Advocate disputes Delmarva’s bill estimates

Public Advocate Jameson Tweedie said the company’s latest proposal comes at a time when households are already facing higher utility costs across the board, including rising electric supply, natural gas and regional capacity charges passed to customers.

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The agency argued Delmarva’s bill impact estimates understate the true cost to households by excluding Distribution System Improvement Charge surcharges that customers are already paying and by comparing the increase to the total bill rather than to base rates alone.

Tweedie also criticized Delmarva’s request for a 10.5% return on equity, calling it unacceptable amid what he described as an affordability crisis. He said his office will closely scrutinize the filing and press regulators to approve only the lowest reasonable rates necessary to maintain reliable service.

Those pressures facing customers extend beyond electricity. In August 2025, Delmarva filed to increase its gas cost rate by about 43%, a move the company estimated would raise gas customer bills or roughly 13% by $11.33 per month.

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