Evening hearings for the purpose of receiving public comment in connection with Delmarva Power & Light Company's application for adjustments to its Maryland retail rates for the distribution of electric energy are hereby scheduled as follows: Monday, March 23, 2020 Chesapeake College, 6:30 p.m. Wye Mills Campus, Health Professional Center – Room 131, 1000 College Circle, (near Routes 50 and 213), Wye Mills, MD 21679. Tuesday, March 24, 2020 Kent County Library, 6:30 p.m. Chestertown Branch, 408 High Street, Chestertown, MD 21620. Monday, March 30, 2020 Wor Wic Community College, 6:30 p.m. Fulton-Owen Hall- Room 103 (1st Floor Conference Room), 3200 Campus Drive, Salisbury, MD 21804. Written public comments on this matter may be submitted electronically, by first-class mail, or hand-delivered by April 13, 2020. Comments sent electronically must be submitted through the Commission's Public Comment Dropbox, which can be accessed through the Commission's website at www.psc.state.md.us. Written comments shall be addressed to Andrew S. Johnston, Executive Secretary, Maryland Public Service Commission, William Donald Schaefer Tower, 6 St. Paul Street, 16th Floor, Baltimore, Maryland 21202, and should reference "Case No. 9630."
Delmarva Power rates are approved by the Public Service Commission ("PSC") and include the amount of revenue Delmarva Power is authorized to receive for distribution services. The Bill Stabilization Adjustment mechanism ("BSA"), approved by the PSC in 2007, is an adjustment that will lower rates if Delmarva Power is receiving more revenue than the PSC has approved, and will increase rates if Delmarva Power is receiving less revenue than the PSC has approved.
The BSA eliminates the link between electricity use and utility revenue. Previously, the more electricity customers used, the more revenues Delmarva Power received. This previous rate structure created a disincentive for the utility to encourage customers to conserve energy because that would lower Delmarva Power's revenues. The BSA allows Delmarva Power to promote energy efficiency programs that will help customers reduce their energy use and drive down electricity supply costs, which are the largest portion (75% - 80%) of the bill.
In January 2012, the PSC issued an Order to prevent use of the BSA beginning 24 hours after the commencement of the major Storm and continuing until all major Storm-related sustained interruptions are restored.
Bill Stabilization Adjustment (BSA)