The Public Service Commission formalized an interim rate increase for Delmarva customers, which was implemented on July 9.
While review of the whole rate increase case proceeds, the PSC says Delmarva can place an interim rate increase of more than $34 million into effect. It's approximately 67 cents added to a customer's utility bill.
The interim increase is half of what the power company asked for in the rate case it submitted last December, for $68 million. Previously, a utility was allowed to temporarily implement its full rate increase request seven months after filing, until the PSC's final decision. But a new law passed this session, SB 326, limits that to half of the request.
Delmarva argued in July meetings that the interim rate it's allowed to implement should be $45.9 million, on top of the Distribution System Improvement Charge rate it implemented in July. DSIC is a semi-annual rate adjustment that utilities can make to recover costs for grid maintenance. The DSIC increase it implemented in July was $23 million.
The PSC gave oral approval for an interim rate last month, but said the DSIC increase implemented at the beginning of July counts toward the rate Delmarva’s allowed to request under SB 326. It did not have an order drafted to reflect its reasoning. It met Wednesday to sign an order reflecting the July decision and reasoning.
PSC member Michael Richard abstained from the vote in July on the interim rate with questions on fairness and procedure.
“Whether or not this is a just and reasonable rate... maybe we’ll be informed by the public comment,” he said.
The PSC will conduct a public comment session to get thoughts from Delmarva customers on the full rate case under review on August 19.
The temporary increase will remain in place while the Public Service Commission hears the matter of the pending application for a $68 million permanent rate increase.
Delmarva can come to the PSC again 12 months out from its original request, to implement an interim rate increase for 75%, which would be $51 million.
This story has been updated with background on DSIC.
