Delmarva Power wants approval from the Delaware Public Service Commission to update its electric delivery rates.
Delmarva Power says the request reflects the costs of on-going efforts to strengthen the local energy grid against more frequent severe weather, along with satisfying customers’ reliability expectations.
But Delaware’s Public Advocate Drew Slater notes that Delmarva’s ask is a significant one.
“Delmarva (Power) filed a re-case (last week) asking for $72.3 million. It’s the largest request I’ve seen and it’s one of the largest requests that they’ve ever made - certainly in the last decade," Slater said. "That’s in addition to a 60% increase in supply costs on the wholesale market. And roughly a 25% increase in the distribution rates (alone.)
Slater says Delmarva Power is also asking for a 10.5 return on equity. It means for every dollar a shareholder spends, they would get 10.5-cents back. He notes that part of the request will probably not fly with the commission.
Slater adds that the Public Service Commission is very concerned about Delmarva Power’s spending.
He says the utility plans to spend $430 million on grid improvements, and while some improvement is necessary - $430 million is a 155% increase over what it spent in 2019.
Slater notes that under the request - the average residential customer, using an average of 844 kWh per month, would see a $10.41, or 8.35% increase on their bill beginning next July. That amount could change after the PSC makes its final determination.
He says safe reliability and storm recovery from Tropical Storm Isaias in 2020 are both a part of this rate case.
Delmarva Power’s last electric rate request was for $17.6 million, which went into effect in August of 2021.
