Delmarva Power Seeks Adjustment in Delaware Electric Rates
Friday, March 22, 2013
Request Supports Reliability, Safety and Improved Infrastructure
Newark, Del. - Delmarva Power has been making significant system investments in Delaware and plans to make additional infrastructure improvements of more than $397 million over the next five years to better serve its customers. Today Delmarva Power asked the Delaware Public Service Commission (PSC) to authorize a base rate adjustment of approximately $42 million to help pay for reliability investments the company is making. The base rate adjustment is subject to the review and approval of the PSC.
The proposed $42 million base rate adjustment reflects rising costs required to provide customers with safe and reliable electric service. Delmarva has continued to enhance system reliability; improve its response to major storms; improve customer service and customer satisfaction and develop mechanisms to assist customers with energy cost such as dynamic pricing and direct load control. These projects and services are critical to providing customers with the reliability and customer service they need and expect. Additionally they enable customers to control and understand their energy consumption, as well as meet Delaware's Energy Efficiency Resource Standards.
“We are committed to improving reliability for all of our customers,” said Gary Stockbridge, Delmarva Power Region President. “The rate adjustment request, if approved, will allow Delmarva Power to continue ongoing reliability commitments to our customers through infrastructure investments.
If the rate adjustment is approved as requested, a residential customer using 1,000 kilowatt hours per month would see a total monthly bill increase of approximately $7.63, or $141.23 to $148.86 per month. This represents about a 5.40 percent increase over rates currently in effect.
Delmarva Power expects to invest approximately $397 million from 2013 – 2017 in new capital infrastructure, a large portion of which is for reliability upgrades servicing homes and businesses throughout Delaware.
Distribution rates cover the cost of delivering power, not the cost of generating power. Customers who buy energy from a competitive supplier continue to receive distribution service from Delmarva Power and therefore will be affected by this requested rate adjustment. The new total monthly bill for customers who shop for their energy will vary according to the price charged by the customer’s supplier.
As permitted by law, Delmarva Power will implement an interim $2.5 million adjustment effective June 1, 2013 while regulators review the full revenue request.
About Delmarva Power: 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 122,000 natural gas delivery customers in northern Delaware .