Delmarva Power revenue proposal puts Maryland’s energy crisis front and center
SALISBURY, Md. — Last month, Delmarva Power filed an application with the Delaware Public Service Commission to increase revenue, raising concerns about rate hikes. Officials provided more details about the $67.8 million increase.
Delmarva Power regional president Marcus Beal said, “A lot of our customers think when they see the announcement for a rate case, that you’re automatically going to see an impact to your bill. But that is not the case.”
Beal said the filing is part of regulated utility work, which includes upgrading equipment for safety and reliability.
“The benefit to doing this work proactively is you avoid any sort of unexpected extended outage for our customers where we’re replacing equipment when it fails unexpectedly,” Beal said.
He also noted that the company is increasing its relief fund for eligible customers from $300 to $500.
“Recognizing it’s cold again this January, we just want to get ahead of that and continue to try to help our customers,” Beal said.
With heaters working overtime to fight the cold, many customers say their wallets are feeling the strain.
Salisbury resident Alex Titus said, “My last power bill was $332 and this month, it’s $762.” He added, “It’s really upsetting to say the least. You know, I don’t expect to pay almost half of my mortgage in just power.”
Beal explained that the company does not generate energy but does deliver it, which he said is one of the two costly components.
“We are responsible for getting that electricity to each of our customers, and then also making sure that the grid remains reliable, safe, and that we are able to expand in a healthy manner when there’s growth in our territory,” Beal said.
Titus said more transparency from the power company would benefit its reputation.
“It just says, ‘Here’s your power. Here’s your bill.’ You know, some transparency for them,” Titus said. “If they’re going to help the impoverished community to subsidize their bills, if something on my bill reflects that, I’d like to see that because I think it’s great, but I’m just paying more, and I don’t know why.”
With rising prices and little relief in sight, Maryland’s energy crisis is at the forefront.
“We want to be part of the solution. There are a number of things that all of us can do to try to help, you know, get through this crisis,” Beal said. “It really comes down to our elected officials, the Public Service Commission, and then, us as the local utility. We’re willing to step in as a backstop if the marketplace doesn’t respond to this quickly enough to make a change. So far, we have not seen enough generation built. There doesn’t appear to be an incentive for generation to be built, so we’re willing to step in there. But again, we all have to do it together.”
At a recent Stop Offshore Wind Conference, Sen. Mary Beth Carozza acknowledged the energy demand crisis, noting that 40% of Maryland’s energy is imported from out of state.
