Staff with the Delaware Public Service Commission and the Division of the Public Advocate reached a settlement this week that could save Delmarva Power customers a combined $6.85 million dollars.
A petition from the Public Advocate was approved earlier this year by the Public Service Commission, reducing Delmarva rates in proportion to the money it saves from the federal tax cuts enacted last fall.
Delmarva had initially asked for a rate increase to cover $31 million in distribution costs.
But under the new settlement typical Delmarva electric customers will see an over $15 annual decrease in their rates instead of a $65 increase.
Public Advocate Andrew Slater says public comment had a lot to do with the petition’s approval.
“A lot of credit for approving our petition goes to, obviously the commission, but also there was significant public comment, including a letter that was signed by 38 state legislators,” said Slater.
He adds Delmarva Power has also been cooperative in reaching this agreement to pass savings back to ratepayers. “In fact, with our petition with the Tax Cuts and Jobs Act it made complete sense to work through the current rate case to reduce rates through that, and Delmarva Power was agreeable to that.”
The settlement was also signed by Delaware Energy Users Group, the Department of Natural Resources and Environmental Control and State Rep. John Kowalko.
It still awaits final approval from the Hearing Examiner and the five-member Public Service Commission.