The monthly bill impact of the rate increase on a residential customer with average usage is about $4.96, or 3.3%. The impact on larger commercial and industrial customers will vary by usage.
Delmarva Power filed for the electric delivery rate increase in September 2009. According to Delaware law, a utility is permitted to put the requested rate increase into effect seven months following its filing date. This rate increase is subject to refund to customers with interest, if the commission’s final approval of electric delivery rates is less than the rates implemented by Delmarva Power.
The delivery rates, which represent about 25% of a customer’s bill, are separate from the supply rate, which makes up about 75% of the total bill. Delivery rates reflect the costs of providing the infrastructure (such as poles, wires and equipment), system, employees and services necessary to move electricity through the wires to customers.
The company said that its additional revenue request reflects rising capital investment costs required to continue to provide its Delaware customers with electric service. Delmarva Power delivers electricity to approximately 300,000 homes and businesses in Delaware.
