Maryland PSC Allows Adjustment in Delmarva Power Delivery Rates
Tuesday, July 24, 2012
Revenue to Cover Costs for Electric System Reliability
SALISBURY, Md. – The Maryland Public Service Commission (PSC) has authorized Delmarva Power to increase delivery rates for its Maryland customers, effective for electric service rendered on and after July 20, 2012.
The change will add 3.11 percent to monthly residential electric bills. A typical bill for a residential customer using 1,000 kilowatt-hours a month would increase by approximately $4.00, moving the average monthly bill from $129.26 to $133.26. The bill impact on commercial and industrial customers would vary according to usage.
The approval of the $11.25 million revenue increase is less than the company’s request for a $25.1 million increase. The company’s full request would have meant a 5.6 percent increase, raising the typical customer’s bill by $7.29 per month.
“While we believe the entire amount of our rate increase request was fully justified, the Public Service Commission’s decision attempts to balance our need for additional revenues to maintain the reliability of our electric system while having a fairly modest impact on our customers,” said Gary Stockbridge, President, Delmarva Power Region. “We will continue investing in our electric system to meet customers’ needs and regulatory requirements.”
The company invested approximately $200 million in infrastructure enhancements from 2007 through 2011 and plans to spend an additional $344 million through 2016 in order to meet customer growth and maintain a reliable electric system.
Delivery rates cover the cost of the poles and wires that carry electricity to customers’ homes and businesses and are separate from supply rates. Supply rates are determined by the wholesale energy markets and reflect the cost of power that Delmarva Power purchases on behalf of its Maryland customers who do not buy power from an alternate supplier. Supply costs are driven primarily by the cost of fuel to make electricity. Customers who buy electricity 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 more than 500,000 electric delivery customers in Delaware and Maryland and over 124,000 natural gas delivery customers in northern Delaware.