Get ready for a jolt! Delaware residents and businesses could soon be facing significantly higher electricity bills. Delmarva Power is seeking a hefty $70 million rate increase, and while everyone agrees that Delaware needs reliable energy, the debate is raging over why these increases are happening and how to fix it. Is it simply the cost of keeping the lights on, or are deeper issues at play?
Delmarva Power & Light officially requested a $67.8 million boost to its base-rate revenue on December 9th, submitting their application to the Delaware Public Service Commission. For context, the Delaware Division of the Public Advocate points out that this marks the third time in roughly five years that the utility has asked for a base rate hike. This request essentially means that Delmarva wants to charge customers more for the fundamental cost of providing electricity, separate from the cost of the electricity itself.
Jameson Tweedie, Delaware's Public Advocate (essentially a lawyer for the people when it comes to utility matters), expressed serious concerns, particularly given the already-rising cost of living. "This would increase a non-heating customer's bill by about $9.30, or about 16%," he explained. "For a space-heating customer, that is closer to $15 per month, or 23 to 24%." That's a significant chunk of change for many families already struggling to make ends meet.
But here's where it gets controversial... Delaware law allows utilities to implement interim rates while the Public Service Commission is still reviewing the case. This means Delmarva Power could start charging the higher rates as early as July 9, 2026, even before a final decision is made. Of course, if the Commission ultimately rejects the full increase, customers would receive a refund. Separate changes to the electric supply rate (the cost of the actual electricity) are already scheduled for June 1, 2026, compounding the potential financial strain.
Tweedie highlights the unfortunate timing. "They're allowed under state law to implement interim rates after seven months. When will those interim rates kick in? Right at the beginning of the summer, as people's air conditioning needs are going up, their electric bills are correspondingly going up." Ouch.
Adding fuel to the fire, the proposal includes an 18% increase in the fixed monthly customer charge, bumping it from $13.50 to $15.94. This is the flat fee you pay just for being connected to the grid, regardless of how much electricity you use. Delmarva is also seeking a 10.5% return on equity – essentially, how much profit they're allowed to make. Democratic Senator Russ Huxtable argues this puts undue pressure on already-strained budgets. "I think it's a little tone deaf to come with the rate increase, such as the one they did, with a 10.5% return on equity for Delawareans...when last year we had a spike in rates because of the cold winter. And here we are in January again." Is it reasonable for a utility company to seek such a high return when so many are struggling?
And this is the part most people miss... Republican Representative Rich Collins takes a different tack. While he admits no one wants higher bills, he suggests they might be unavoidable given Delaware's energy situation. "The power that we're having to import is not close by...you're going to end up paying dramatically more money for lines that are capable of carrying that to us. So I'm opposed to rate increases, but I'm a realist."
Collins argues that decades of green energy policies and government overregulation are significant drivers of these rising costs. He believes these policies have inadvertently made energy more expensive for everyone. "Every piece of legislation we've actually passed probably for 20 years has had the effect of, in one way or another, raising energy costs. And I will promise you that it is going to continue and get worse until the day that legislators who understand this...understand that it's only going to make things worse for the citizens of Delaware." Strong words!
Republican Representative Bryan Shupe echoes this sentiment, stating that green energy mandates are forcing utilities to make choices that aren't necessarily in the best financial interest of consumers and limit investment in modernizing the grid. "The rate requests will keep coming, as long as we have those green energy mandates in place. It's not that the green energy isn`t something that we should move towards, but it's the actual mandates that require them to go against free market principles at a time where we need them to be investing in moderate modernization of the grid, and also in placing more production of energy here on Delmarva Peninsula."
Collins emphasizes Delaware's reliance on electricity imported from other states, arguing for long-term solutions like nuclear small modular reactors and increased use of natural gas to stabilize prices and ensure a reliable energy supply. "In the long term, if you truly want to go green, that's the only realistic way to do it." Is he right? Is nuclear power the answer, despite the concerns some people have?
Huxtable agrees that Delaware needs more energy sources but argues that the state must also prioritize solutions that can deliver results more quickly. "I know we have a task force that is engaged on the nuclear issue, but nuclear power is like ten plus years away from being a thing. My approach is like all of the above — wind, solar, nuclear, gas. All of it needs to be part of a balanced mix, and that's what we're all looking forward to doing responsibly." It seems everyone agrees on the problem, but not the solution!
In a statement, a Delmarva Power spokesperson said, "We understand that costs are continuing to rise for families and businesses, and Delmarva Power is reinforcing our commitment to Delaware residents and businesses through our two most recent filings...These proposed programs and investments have been designed with our customers at the forefront, and to deliver the reliable energy they expect and deserve."
The proposal will now undergo a formal review process, including public hearings before a hearing examiner, before the Public Service Commission makes its final decision later this year. This is your chance to make your voice heard!
So, what do you think? Are these rate increases justified? Is green energy to blame? Are there better solutions out there? Let us know your thoughts in the comments below!
