DOVER, Del. — Delaware House Democrats are calling on the Public Service Commission to reject a proposed $44.9 million natural gas rate increase by Delmarva Power, citing concerns over rising energy costs burdening families across the state.
In a letter addressed to PSC Chairman Winslow, lawmakers highlighted the series of rate hikes Delmarva Power has received over the past decade. They claim that the proposed increase—if approved—would raise ratepayers' bills by 23% while boosting the company’s shareholder returns by 10%.
“The people of Delaware need relief,” the letter stated. “This is unacceptable, and we urge the PSC to reject this rate increase or require serious amendments prior to approval.”
A PSC hearing is scheduled for Wednesday afternoon. Lawmakers are urging people to come out and make their voices heard.
Legislators encourage people to come to Wednesday's PSC hearing.
Pattern of Rising Costs
According to the letter, Delmarva Power has secured multiple rate increases in recent years, including:
- $6.7 million natural gas rate increase in 2021
- $13.4 million natural gas rate increase in 2022
- $17.7 million electric rate increase in 2021
- $42.25 million electric rate increase in 2024
Delaware Democrats say the the company has sought or received $125 million in rate hikes, significantly impacting households already struggling with rising costs of living.
Meanwhile, lawmakers pointed out that Delaware Electric Cooperative and DEMEC customers have seen more stable energy prices, further fueling frustration among people who rely on Delmarva Power for their electricity and gas.
Delmarva Power’s Response
Delmarva Power is planning a media briefing for Tuesday on proposed legislation. Ahead of that, the company issued the following statement to CoastTV:
"Customers experienced higher than normal energy bills this winter for a number of reasons. The primary driver of this was an increase in usage due to the unseasonably cold weather we experienced. While there was a slight rate adjustment for customers in October, rates represented approximately 1 percent of the total change year-over-year.
Our investments into the energy system ensure electric is powering the lives and gas is heating the homes of our customers. The frequency of outages for electric customers has decreased 47 percent over the last 10 years, and in 2024, our gas customers in New Castle County saw a 48 percent reduction in service interruptions, compared to 2023.
We share a common goal to ensure energy is affordable reliable for Delaware residents. We remain committed to working together with other utilities, elected and regulatory officials, PJM, generators and customers, to be part of a path forward that supports the area’s growing energy needs and manage bill impacts, while continuing to reach our collective clean energy and climate goals for all Delawareans."
In past stories about the higher than normal rates, Delmarva Power has attributed the increase in energy bills to an unusually cold winter, which led to higher energy consumption. The utility company has told CoastTV they are committed to addressing customer concerns and providing resources to help manage winter energy costs, including suspending shut offs and allowing longer repayment plans.
Concerns Over Alternative Rate Structure
Beyond the proposed rate hike, lawmakers also urged the PSC to reject an alternative rate structure for Delmarva Power under docket #24-0868, warning that it could further drive up costs.
“This new rate structure is likely to benefit utilities and their bottom lines at the expense of everyday Delawarean ratepayers,” the letter stated.
The PSC has yet to rule on the proposed rate increase or the alternative rate structure.
Legislative Action on Energy Rates
Delaware lawmakers have proposed a slew of bills addressing energy rates, including the following:
Senate Bills 59 and 60, which would change how the PSC evaluates and approves rate increases. The bills would also limit the costs that utility companies can pass on to customers.
Senate Bill 61 would require all electric utilities in Delaware to disclose votes and positions taken on PJM matters
Senate Bill 65 would withdraw Delaware from the Regional Greenhouse Gas Initiative. Conversely, House Bill 50 would use RGGI proceeds to create the Delaware Energy Fund.