Gov. Meyer Calls Upon Delaware Public Service Commission to Suspend Delmarva Rate Hike

Governor Matt Meyer today urged the Delaware Public Service Commission (PSC) to keep Delmarva Power’s distribution rates at their current level while the Commission reviews the utility’s latest request for a rate increase.

In a letter sent to the Commission, Meyer asked regulators to use their authority under 26 Del. C. § 310 to prevent an interim rate increase from taking effect July 9, arguing there is a high likelihood the temporary rate would exceed what the Commission ultimately determines to be just and reasonable.

“For too long, Delaware families have been asked to absorb one rate increase after another while utilities continue to rake in record profits,” said Governor Matt Meyer. “Temporarily suspending another rate hike request from a $48 billion monopoly is more in the public interest than shifting the costs to hardworking families that are deciding between paying their utility bills, their rent, or buying groceries this summer. The Public Service Commission exists to protect the public interest, and now is the time to use every tool available to make sure Delawareans aren’t paying more than they should.”

The Governor said Delmarva Power’s repeated rate increase requests have contributed to an affordability crisis for Delaware families, seniors and small businesses. He noted that across the utility’s seven most recent base rate cases, the Commission ultimately approved less than what Delmarva requested.

Meyer also cited concerns raised during this year’s legislative session about the utility’s resource planning and argued that the current case is the first to be reviewed under Delaware’s prudence standard rather than the more deferential business judgment standard.

The letter notes that low- and moderate-income households already spend up to 10% of their income on energy costs. Meyer also noted that Delmarva transferred more than $200 million in profits to its parent company, Exelon, last year while projecting annual earnings growth of 5% to 7% through 2029.

The Governor asked the Commission to pause the interim rate increase, protect customers from paying rates that may later be reduced, and require Delmarva to demonstrate that its requested costs were prudently incurred.

Meyer also requested that the letter, along with constituent complaints received by the Governor’s Office regarding rising electricity costs and supporting news coverage documenting Delaware’s energy affordability challenges, be entered into the official record of the Commission’s pending proceedings.