The General Assembly's new, stricter standards on what expenses a utility can shift onto customers will apply to the $67.8 million base rate increase Delmarva requested in December.
The General Assembly passed the new standard, Senate Bill 59, last year. It says the company must justify why costs are “prudent” investments for rate payers. The law took effect Jan. 1 2026.
It was unclear whether the new rule would apply to Delmarva's full request, since it was filed before then. Delmarva had requested that half its case fall under Delaware's previous standards for reviewing rate cases.
But Delmarva submitted a letter in February, indicating its willingness to for the new prudent standard to apply to its full case.
Delmarva Power’s Brian Jordan spoke to the Senate Environment, Energy & Transportation committee to let them know a formal agreement with the state's public advocate is underway.
"We believe that application of the prudent standard to all the investments will advance administrative efficiency, transparency and clarity and avoid any unnecessary confusion throughout the course of the proceeding," Jordan said.
Sen. Stephanie Hansen (D- Middletown), chair of the Senate Environment, Energy & Transportation committee, filed a bill in February to mandate that the new standard apply to Delmarva's full case.
But given Delmarva's letter and intention to formalize an agreement, she told the committee that the bill didn't need to move forward.
