Delaware lawmakers are pushing back against a proposed $44.9 million natural gas rate increase by Delmarva Power, arguing that the substantial hike would unfairly burden residents already struggling with high utility costs. The proposal, which would raise customer bills by approximately 23%, has drawn sharp criticism from state officials.
The request, currently under review by the Delaware Public Service Commission (PSC), marks the largest rate increase in Delmarva Power’s history according to lawmakers. If approved, it would allow the company to increase its shareholder returns to 10% according to a letter sent to the commission. Lawmakers argue that such an increase is unacceptable, particularly given the series of previous rate hikes granted to the utility in recent years. Since 2021, Delmarva Power has secured multiple rate increases, totaling more than $125 million, covering both natural gas and electric services according to lawmakers.
“During that same time period, Delmarva Power’s electric rates also increased by $17.7M in 2021 and $42.25 in 2024, totaling $125M in rate increases requested or PSC approved rate increases each passed onto Delaware residents. These increases have generated significant resentment and frustration throughout the state, especially when contrasted with Delaware Electric Cooperative and DEMEC customers, whose bills have remained far more stable.”
In addition to the rate increase, Delmarva Power is seeking approval for an alternative rate structure that critics claim could further inflate costs for consumers. Testimony from PSC staff has suggested that this proposal may not be in the best interest of the public, a concern echoed by state legislators who warn that such measures could deepen financial strains on Delaware families.
To counteract what the lawmakers see as an unjustified increase, they are moving to advance two key pieces of legislation—Senate Bills 59 and 60. These bills aim to reform the process by which the PSC evaluates rate increases, imposing stricter oversight on utilities and limiting excessive costs passed on to consumers. Legislators are urging the PSC to reject any rate hikes that exceed what is necessary to maintain reliable service.
With a PSC hearing on the matter approaching, lawmakers are encouraging residents to participate in the regulatory process and voice their concerns.
