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For Immediate Release


Delmarva Power Files for Adjustment in Maryland Delivery Rates

Utility Requests 2.6 Percent Increase to Cover Higher Costs

SALISBURY , Md. - Delmarva Power today asked the Maryland Public Service Commission (PSC) to authorize an increase in distribution rates in Maryland, only the third delivery rate increase in more than 15 years. If approved, the change would add about 2.6 percent to monthly residential electric bills, effective in December. The typical bill for a Standard Offer Service residential customer using 1,000 kilowatt-hours a month would increase by $3.89, moving the average monthly bill from $151.12 to $155.01.

The proposed $14.1 million increase reflects rising costs required to provide customers with safe and reliable electric service. Factors include higher cost of capital and pension expenses, improvements to the electric system and general inflation.

"Delmarva Power remains committed to controlling its operations and maintenance costs," said Gary Stockbridge, President, Delmarva Power region. "We are seeking this rate adjustment to help cover the rising cost of maintaining and improving our electric delivery system."

Delivery rates cover the cost of continuing to provide our customers with safe and reliable service, investment in new electric system technology and improving service capabilities to keep pace with growth and increasing customer demand.

Supply rates, which are separate from delivery rates, are adjusted periodically to 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 from a competing supplier will see the same increase in their delivery rates. Their new total monthly bill will vary according to the per-kilowatt-hour price charged by their supplier.


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 .

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