DOVER, Del. (AP) - Delaware utility regulators have refused to open a docket on Delmarva Power’s request to raises its electric rates because Delmarva is seeking more money than it initially said it would.
The Public Service Commission voted unanimously Wednesday to reject Delmarva’s request to open the docket until the company conducts a cost of service study that will allow customers to know the estimated impact on their bills.
In a March 6 filing, Delmarva sought permission to increase its electric base rates by $24.3 million, which it said would result in a 3.42% increase in a typical residential customer’s bill.
In a filing late Tuesday, however, the utility said the revenue number it is seeking is $27 million, not $24.3 million, an increase of more than 10%.
Delmarva urged the commission to open up the docket now and let the company notify customers later of the revised numbers. Commission staff and the Division of the Public Advocate, which represents consumer interests in utility cases, opposed the request.
“We have a completely new case, new rates, new revenue, new cost of service,” said James Geddes, an attorney for the commission.
“The company’s prior request is no longer valid,” Geddes added. “They want $27 million, the ratepayers should know that.”
Regina Iorii, an attorney representing the Public Advocate, said she didn’t receive Delmarva’s new filing until Wednesday morning, just hours before the commission meeting.
“The company does not have a right to submit an incomplete case and demand that it be opened” Iorii said, suggesting that to do so would be “highly improper.”
Pamela Scott, an attorney for Delmarva, argued that Delmarva should be allowed to proceed with the rate case and notify customers of the revised numbers later.
Delmarva attributed the change to a new mandate requiring the company to identify business customers who are eligible for lower rate classifications and to immediately move them to less expensive rate categories.
“These are unique circumstances,” said Delmarva Power attorney Pamela Scott. “We had to pivot and make some substantial changes with respect to certain customer classes.”
The customer migration mandate, which the commission formally adopted Wednesday, requires Delmarva to automatically move commercial electric customers to less expensive rate classifications when they are eligible, rather than forcing customers to ask to be moved.
The commission’s ruling involved a petition by PSC staff and the Public Advocate to protect Delmarva’s business customers from unnecessarily overpaying for their electricity. The petition was filed after officials learned that more than 5,000 Delmarva business customers may be paying more than they need to. The issue came to light after The Associated Press published an article in December about a complaint filed by a Sussex County businessman.
Shortly before Wednesday’s commission meeting, the vice president of regulatory policy and strategy for Delmarva parent company Pepco Holdings told The Associated Press that he didn’t know what the revenue requirements related to the customer migration mandate were going to be.
“Until we know the exact customers that are changing, I’m not sure what the revenue requirement’s going to be or what the impact will be on customers,” said Kevin McGowan.
In its filing Tuesday night, however, Delmarva put specific numbers on the revenue impact and affected customers. The company said the migration of business customers would involve 207 large customers moving to the less expensive medium service and 5,404 medium customers moving to the less expensive small service.
Delmarva pegged the revenue loss at $2,576,032, resulting in an earnings loss of $1,851,601 after expenses.
Please read our comment policy before commenting.