DOVER, Del. - Governor Matt Meyer is calling on Delaware regulators to block a proposed Delmarva Power rate increase from taking effect while the utility's request is under review.
In a letter sent Monday to the Delaware Public Service Commission,, Meyer asked the commission to use its authority under state law to keep Delmarva Power's current distribution rates in place instead of allowing an interim increase scheduled to take effect July 9.
The governor argued there is a strong possibility the temporary rates would be higher than what the commission ultimately determines is fair and reasonable.
"For too long, Delaware families have been asked to absorb one rate increase after another while utilities continue to rake in record profits," Meyer said in a statement. "Temporarily suspending another rate hike request from a $48 billion monopoly is more in the public interest than shifting the costs to hardworking families that are deciding between paying their utility bills, their rent, or buying groceries this summer."
Meyer said Delmarva Power's repeated requests for rate increases have added to affordability concerns for families, seniors and small businesses across the state. He noted that in the company's seven most recent base rate cases, the PSC approved increases that were lower than the amounts Delmarva initially requested.
According to the governor's office, low- and moderate-income households in Delaware already spend as much as 10% of their income on energy costs. Meyer also said Delmarva transferred more than $200 million in profits to its parent company, Exelon, last year while projecting annual earnings growth of 5% to 7% through 2029.
In his letter, Meyer asked the PSC to suspend the interim rate increase, require Delmarva to demonstrate that its requested costs were carefully calculated, and protect customers from paying rates that could later be reduced.
The governor also requested that constituent complaints received by his office regarding rising electricity costs, along with news coverage documenting Delaware's energy affordability challenges, be added to the official record in the commission's ongoing review of Delmarva's rate request.
In response, Delmarva Power said it is reviewing the governor's request and working with stakeholders to identify additional ways to provide customer relief this summer.
The utility said it filed a reduced interim delivery rate request with the PSC on June 9 that would provide approximately $11 million in residential customer relief, lowering the proposed interim increase to about $3 per month for a typical customer instead of more than $6 permitted under state law.
Delmarva Power said the proposed delivery rates reflect investments already made to replace aging infrastructure and improve grid reliability. The company said those investments have contributed to a 28% reduction in outages over the past decade and improved system performance during major weather events.
The utility also said recent increases in customers' electric bills have been driven primarily by supply costs set through regional energy markets, rather than delivery charges. It added that about 80% of its profits since 2016 have been reinvested in Delaware to support reliability and operations.
“We recognize affordability remains a top concern and will continue working with policymakers and stakeholders on solutions while delivering the reliable service customers expect,” a Delmarva Power spokesperson told WBOC on Monday.
