Over 5,000 First State businesses may be paying too much for electric service from Delmarva Power.
An investigation by the Delaware Division of the Public Advocate and Delaware Public Service Commission found 35 percent of medium and large businesses using Delmarva Power may be paying higher rates than necessary.
"About 5,200 commercial customers of Delmarva Power are paying more than they have to," said Drew Slater, Delaware’s Public Advocate. "They qualify for a lower rate classification which could save them hundreds of dollars a month based on the fact that they are paying a demand charge now and may not have to."
Slater explains how some businesses landed in this situation.
"Delmarva's tariff as it currently reads automatically switches you when you go above the usage threshold. When you go above that for two consecutive months you are placed on a larger rate classification for 12 months. You are not automatically switched back down after that 12 month I call it a probationary period is over."
Slater recommends businesses call the utility to make sure they are paying the proper rate.
"It's incumbent on customers to call and specifically ask 'if they qualify for a lower rate classification' because that's the way the tariff reads it's very customer driven and the utility is not going to reach out to these customers and say you qualify for a lower rate."
The number to call is 1-800-375-7117.
A Sussex County business owner was the first to lodge a complaint about the issue last year. The Public Service Commission ruled in favor of that business in December, prompting additional complaints.
