Delaware Public Media

Delaware's Public Advocate seeks utility rate cuts for consumers

Jan 5, 2018

The Delaware Public Service Commission could approve utility rate reductions for ratepayers later this month.

The state’s Public Advocate is asking utilities to share some of the benefits they’ll get from federal tax cuts.

The corporate tax rate dropped from 35 percent to 21 percent at the beginning of the year. But utility companies are routinely allowed to raise rates to offset equipment and maintenance expenses. Delmarva Power is currently requesting a rate hike for that very reason.

Newark State Rep. John Kowalko says he and dozens of other legislators are supporting the Delaware Public Advocate’s petition for the utilities to pass their tax savings on to consumers.

“We did we get 26 signatures all total for the letter," he said. "I believe there’s a couple more people who want to put their name on it. It’s a letter of support which I think has enough influence with the Public Service Commission that they’ll give it serious consideration.”

A spokesman for Delmarva says the company believes the benefits they’re expecting from tax cuts will go toward meaningful reductions for ratepayers. The Public Service Commission will determine how to give consumers a rebate.

The commission meets to consider the petition on Jan. 16th.