Delmarva Power rate hike to spike Delaware customers’ rates by about $1.27 per month

Delmarva Power’s supply rates increased as part of the utility’s annual reasonable allowance for retail margin filing, made Nov. 9, with the Delaware Public Service Commission. The monthly increase for the typical residential customer using 1,000 kWh is $1.27, from $149.21 to $150.48, effective Jan. 9.

The increase in the annual reasonable allowance for retail margin adjustment is driven by an increase in the company’s cash working capital requirement because PJM, the regional power grid operator for 13 states and the District of Columbia, changed from a monthly to a weekly settlement schedule. This resulted in fewer lag days for paying expenses and more upfront dollars are needed.

It was also affected by an increase in the written off dollars for uncollected payments from disconnected customers for the energy supply portion of their bills

The reasonable allowance for retail margin also reflects a recovery of administrative expenses associated with obtaining supply for Delmarva Power’s default standard offer service customers and the company’s allowable profit margin for standard offer service.

Additionally, Delmarva Power’s delivery rates increased slightly in November for its Delaware residential and commercial customers when the company implemented an interim rate increase based off its request for an additional $27.6 million in revenue to support rising capital investment costs required to continue to provide its Delaware customers with safe and reliable electric service.

For the typical residential customers, the monthly effect of the interim delivery rate increase was 53 cents.