Utilities, lawmakers pursue common ground over control and setting of rates

Curtailing the rise in electricity bills is right at the top of the list as the Delaware General Assembly picks up the session.

Customers of Delmarva Power in particular have been venting for weeks about doubling or even tripling of their electricity bills. The utility has said that record demand and unusually cold temperatures were the primary reasons.

Several new legislative proposals came before the Senate Environment, Energy and Transportation Committee Wednesday morning in Dover.

Senate Bill 59 would require the Public Service Commission to apply the standard for “prudence” in considering utility costs. In Delaware, what’s called the “business judgement” standard is applied.

What does this mean for Delmarva and its Delaware customers?

 Delmarva Power Region Vice President Marcus Beal said it’s unnecessary.

“The Public Service Commission has oversight over that process. It is very public, highly scrutinized and of course the Public Service Commission has the authority to ask for all financial information and any documentation that they require, to help them make their decision on whether or not they grant our rate increases,” Beal said. “The investments that we make are prudent.”

Beal also said Delmarva Power’s reliability and resiliency goals could be jeopardized under the provisions of Senate Bill 60, which would cap annual capital expenses of electric distribution companies at $125-million.

“We feel that that will restrict our ability to replace aging infrastructure. With all of the goals that we have in the state regarding climate change, our state energy goals,  we really do need that flexibility to be able to ensure that we can continue to partner with our state elected officials and make sure that we’re meeting our state goals,” Beal said.

Senate Bill 61, designed to bring about more transparency regarding PJM Interconnection decisions, was also on the table at Wednesday’s meeting. Several other bills await consideration, including GOP — backed proposals to get Delaware out of the Regional Greenhouse Gas Initiative and to explore the possibility of small modular nuclear reactors.

Beal was also asked of Delmarva Power felt caught in the middle or singled out in the midst of the uproar over utility bill increases.

“The political landscape today is unique. We have the unique advantage of really being able to just focus on our customers.” Beal added that the priority now is to focus on affordability and empowering customers.

“We’re meeting our customers where they are.”

Get WDEL’s top stories sent right to your email.  Click here to signup for WDEL’s Afternoon Edition.

And get breaking news notifications sent right to your mobile device. Click here to download the WDEL app – which gives you easy on-the-go access to WDEL’s stream.