Delmarva Power Seeks Adjustment in Maryland Electric Rates
Friday, March 29, 2013
Revenue to Cover Costs for Reliability and Enhanced Infrastructure
SALISBURY, Md. – Delmarva Power has made significant improvements to its electric system over the last several years and plans to make additional infrastructure investments in Maryland of more than $767.6 million over the next five years to better serve its customers. Delmarva Power today asked the Maryland Public Service Commission (PSC) to authorize a base rate adjustment of $22.76 million to help pay for service reliability investments already made. The base rate adjustment is subject to review and approval by the PSC.
“We understand that these are difficult economic times for many of our customers and we are working diligently to control our costs, however, in order for us to continue to provide the best service possible, it is critical that we continue to invest in improving and upgrading our electrical system,” said Gary Stockbridge, Delmarva Power Region President. “Today’s rate adjustment request will enable us to maintain our schedule of implementing reliability improvements to meet customers’ service expectations.”
If the rate adjustment is approved as requested, a typical Maryland residential customer using 1,000 kilowatt hours per month would see a total monthly bill increase of $7.74, from $140.22 to $147.96, or 25 cents more per day. This represents a 5.5 percent increase over current rates.
The proposed $22.76 million base rate adjustment reflects rising costs required to provide customers with safe and reliable electric service. Factors include upgrades to existing infrastructure, enhancement of the reliability of the distribution system, construction of new facilities and continued tree trimming to meet future customer needs. The requested rate adjustment also includes approximately $6.5 million of restoration costs associated with the Derecho and Hurricane Sandy in 2012 amortized over a five-year period.
Distribution rates cover the cost of delivering power. Customers who purchase their electricity from a supplier other than Delmarva Power will see the same delivery rate increase but their new total monthly bill will depend on the per-kilowatt-hour price charged by their supplier. The bill impact on commercial and industrial customers will vary according to usage.
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.