Dear Chairman Winslow:
As you are aware, Delawareans across the state have been alarmed in recent months by the drastic increases in their gas and electric bills. Even when accounting for factors such as the inclement weather and the accompanying increase in usage, these price hikes reached levels rarely seen in Delaware. Families are already struggling to keep pace with the rising costs of essential goods and services, and the increased cost of gas and electric is only adding to these families’ strained finances.
Over the last 10 years, Delaware’s utility companies have come before the Public Service Commission (PSC) to secure approval for dozens of rate increases on Delaware customers throughout the state. In February 2021, Delmarva Power was awarded a $6.7M rate increase in natural gas rates by the PSC. Another natural gas rate increase quickly followed this in November, 2022 of $13.4M. Now, Delmarva Power has made another request for nearly $44.9M in natural gas rate increases
During that same time period, Delmarva Power’s electric rates also increased by $17.7M in 2021 and $42.25 in 2024, totaling $125M in rate increases requested or PSC approved rate increases each passed onto Delaware residents. These increases have generated significant resentment and frustration throughout the state, especially when contrasted with Delaware Electric Cooperative and DEMEC customers, whose bills have remained far more stable.
The people of Delaware need relief. The PSC is currently considering a $44.9M rate increase to Delmarva’s gas rates, docket #24-1044. Not only is this the largest rate increase Delmarva power has ever requested, it would also increase the amount of money going directly to Delmarva’s shareholders by 10%. In Delmarva’s own filings, they stated this would lead to a 23% increase in ratepayers’ bills. This is unacceptable and we urge the PSC to reject this rate increase or require serious amendments prior to approval.
Additionally, the Public Service Commission is considering an alternative rate structure for Delmarva Power under docket #24-0868. As noted by testimony by the Public Service Commission’s staff this alternative rate structure is not in the public interest and would lead to increased costs on ratepayers that have already been harmed by high energy bills this winter. This new rate structure is likely to benefit utilities and their bottom lines at the expense of everyday Delawarean ratepayers. We ask the PSC to unequivocally reject this alternative rate structure.
In the General Assembly, we intend to quickly consider and pass SB59 and SB60, which would change the method by which the Public Service Commission considers rate increases and the costs allowed to be recovered. We urge you to use this new tool to protect Delawareans from injurious rate increases. We recognize that investor-owned utilities are limited in the ways they can generate profit for returns to their stockholders. One of these methods is through infrastructure investments. With the quick enactment of SB59 and SB60 we ask that you reject attempts by utility companies to pass investments to ratepayers that are above what is necessary for utility reliability.
We can not stand idly by while utilities create excessive returns for their investors on the backs of our constituents. The people of Delaware are looking to all of us to step up and provide the relief they desperately need, and they deserve our full attention and effort at every level of government to provide that relief.
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