Tidewater Utility rates to temporarily be reduced
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.