Maryland PSC Approves 1.4 percent Rate Adjustment for Delmarva Power
Wednesday, July 13, 2011
Increase to Cover Higher Costs
SALISBURY , Md. – The Maryland Public Service Commission has voted to approve Delmarva Power’s request for an increase in electric delivery rates for the company’s nearly 200,000 Maryland customers.
The change will add 1.4 percent to monthly residential electric bills. The typical bill for a Standard Offer Service residential customer using 1,000 kilowatt-hours a month would increase by $1.78, moving the average monthly bill from $127.08 to $128.86. The bill impact on commercial and industrial customers will vary according to usage.
The new rates will apply to customer electricity usage on and after July 8, 2011.
The $12.2 million revenue increase reflects the rising cost of providing customers with safe and reliable electric service. Factors include upgrades to the electric system to improve reliability and support investment in new technology.
Delivery rates cover the cost of the poles and wires that carry electricity to customers’ homes and businesses. They are separate from supply rates which are driven primarily by the cost of fuel to make electricity and reflect the cost of energy that Delmarva Power purchases on behalf of its Maryland customers who do not buy power from an alternate supplier. Customers who buy from a competing supplier will see the same increase in their delivery rates.
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to nearly 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware .