Federal Energy Regulatory Commission finds proposed Delmarva Power price hike “Unlawful”
SALISBURY, Md- Regulators say a proposed rate change from Delmarva Power as part of a planned merger is unlawful and does not pass along savings to customers.
The Office of People’s Council notified the Federal Energy Regulatory Commission about a proposed merger of Delmarva Power with New Jersey and Delaware area utilities to a single location in Pennsylvania.
The office of people’s counsel found that the reduced overhead from the move should have netted customers significant savings, but proposed rates that were submitted to the FERC did not reflect those reduced costs, causing OPC to issue a protest to the proposal.
“We are looking at it and saying some of those accounting changes may not be appropriate and may result in customers paying more than they otherwise should,” said acting counsel Bill Fields, adding, ” The argument here is about not enough of those savings being passed down to customers.”
The FERC agreed and has sent Delmarva Power back to create a new accounting plan that would fall within the agency’s guidelines for consumer prices.
The proposed billing change would have taken place starting January 2023.