For Immediate Release
Delaware Public Service Commission Orders Rate Adjustment for Electric System Investments
NEWARK, Del. - Delmarva Power, a subsidiary
of Pepco Holdings, Inc., was granted a rate adjustment of $22 million for
investments to improve its electric system. Delmarva Power filed its
application for the electric delivery rate adjustment in December 2011. After nearly a full year of careful analysis
and review, the Delaware Public Service Commission authorized the adjustment in
electric delivery rates to support the company's ongoing efforts to maintain
safe and reliable service and provide enhanced customer service technology that
will provide customers with the opportunity to reduce the electric supply portion
of their bills.
Commission also approved approximately $1.1 million per year in recovery for
Delmarva's Advanced Metering Infrastructure.
This recovery was permitted after it was determined by the Commission
Staff that Delmarva's AMI system has achieved over $5 million in savings for
customers to date.
The result of the adjustments approved by the Commission would mean that the
typical monthly bill for a residential customer using 1,000 kilowatt-hours per month would increase by $4.73 from $136.86
per month to $141.59 or approximately 3.2 percent per month. However,
because a temporary rate increase went into
effect in July 2012 and the increase approved by the Commission on December 18th
is less than the temporary increase, the typical residential customer will
actually see a decrease of about 34 cents per month starting in January 2013.
Power remains committed to delivering safe, reliable electric service at
reasonable rates," said Delmarva Power Region President Gary Stockbridge. "This rate adjustment helps cover the rising
cost of maintaining our infrastructure and improving our electric delivery
system," added Stockbridge.
Power is currently investing about $357 million specifically for maintaining
and enhancing reliability over five years.
rates are just one component of the customer's total monthly bill and cover the
cost of maintaining safe and reliable service, investments in new technology,
and infrastructure improvements. Delivery
rates reflect the costs of the equipment and services needed to deliver electricity
to Delmarva Power's customers. Delivery rates reflect about 25 percent of a
supply rates, which are a separate component of the bill and are not related to
this rate case, represent about 75 percent of the bill. Electric supply rates represent the
electricity itself. Although the electric
supply rate is reflected on Delmarva Power's bill, Delmarva Power does not
generate electricity. Auctions are
conducted each year in which the lowest bidder wins the right to supply
electricity to Delmarva Power's customers.
As such, electric supply rates are adjusted periodically to reflect the
cost of electricity that Delmarva buys for customers who do not choose an
alternate electric supplier.
Customers with questions
regarding billing and/or the rate adjustment can contact the Delmarva Power
Customer Care Center at 1-800-898-8042 or visit www.delmarva.com.
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.