The Public Advocate's petition to reduce Tidewater’s rates is granted.
The Public Service Commission granted the Public Advocate’s petition last week to reduce Tidewater’s rates to a just and reasonable level pending further review.
Delaware Public Advocate Drew Slater explains why a petition was filed.
"Tidewater was over earning their authorized rate of return. As a regular Monopoly with a captive customer base, which means that they don't have competition, the Public Service Commission sets their rate of return,” said Slater. “Since they were overearning we filed a petition to reduce their rates to get to a position where they're no longer over earning."
Slater explains how much customers will save.
"So there's a temporary reduction in rate up to 6%, the total amount we calculated to be about $2.2 million, and that's estimated to be roughly $10 per quarter," said Slater.
Slater notes the reduction is temporary, and he believes that means six months. Tidewater is expected to file a rate case in January.
Tidewater serves about 47,000 customers in all three counties in Delaware.
