For Immediate Release
Improved Reliability With Fixed, Reasonable Four Year Rate Structure
NEWARK, Del.- Today, Delmarva Power filed a proposal with the Delaware Public Service Commission (the Commission) called the Forward Looking Rate plan (the plan).
The plan is an innovative forward looking proposal designed to improve service and lessen the financial impact on our customers by establishing electric delivery rates for a period of four years. Under the proposed plan, customers will know how much to budget for electric rate increases for the distribution portion of their bill for four years into the future. It is a more efficient process compared to that currently in effect. Currently, electric distribution rates are established through a time consuming and expensive litigated proceeding before the Commission each year. Under the plan, the Commission will review Delmarva Power's future expenditures while continuing to have all of its current oversight.
The plan also links reliability performance to investments through reliability standards that are at least 35 percent more stringent than they are today. If Delmarva Power does not meet the proposed stricter reliability standards, it will be required to provide refunds to customers.
Because the plan results in a lower than authorized earned rate of return for Delmarva Power and the regulatory filing costs are reduced because of the four year period between filings, the plan will help provide reasonable electric delivery rates for Delmarva's customers.
Additionally, the plan will create the ability to build, enhance and strengthen electrical infrastructure throughout the Delmarva Power Service territory. An improved electric infrastructure will help further reduce the frequency and duration of outages, support the state's commitment to emergency preparedness and response, and provide Delaware with the reliable electric grid it needs to be competitive in the modern digital/electronic economy.
If approved, the plan would replace Delmarva Power's pending rate case filed in March of 2013. The plan is designed to fund all the capital, operational and maintenance expenses required to meet more stringent reliability standards. A typical residential customer would experience bill increases once per year averaging less than $2.40 per month, which equates to an average total bill increase less than 1.8 percent per year over a four year period."Delmarva Power is constantly working to provide quality service and affordable, energy efficient opportunities to our customers and the state of Delaware, said Gary Stockbridge, president of Delmarva Power. "The Forward Looking Rate plan is in tune with the needs of our customers, adresses the requirements of our infrastructure, and translates into infrastructure jobs in the state for the next several years," added Stockbridge.