Proposed standard offer service (SOS) supply rate change will raise overall electric bills for customers beginning June 1 

Delmarva Power & Light electric customers on default Standard Offer Service (SOS) will face an 18-20% increase in the price of electricity beginning June 1, which Delmarva estimates will represent approximately a 9% increase in the average overall bill. The increase is yet another utility cost increase facing Delawareans at a time of already too high energy costs.  

“I am extremely concerned with the collective impact of energy and utility cost increases on Delaware customers,” said Jameson Tweedie, Delaware Public Advocate. “We are seeing increases across almost all aspects of utility costs, including electricity supply costs, natural gas supply costs, regional PJM capacity market and transmission costs, and utility requests to increase base rates. And all of these increases are on top of already high bills and are compounded by rapid electricity demand growth across the PJM region from large energy users, like hyperscale data centers. The collective impact on families and businesses across Delaware is brutal.” 

Delmarva procures electricity for SOS customers through competitive auctions run by Delmarva under Public Service Commission supervision.  According to Delmarva, the increase is primarily due to higher regional electricity supply costs.  Delmarva does not earn a profit on the electricity supply itself.  Each SOS auction is reviewed by an independent expert, who after the most recent auction determined that the auction “process was run successfully from start to finish” and the [w]inning bids were consistent with expectations based on market conditions.”  (Technical Consultant Final Report Delmarva 2026 SOS Auctions, Dr. James Letzelter, Liberty Consulting Group, February 18, 2026.)   

Renewable compliance costs will go down by 11%, but represents a much smaller portion of a customer’s bill. The combined impact is expected to raise overall electric bills for most households. Delmarva estimates that a typical residential customer using about 811 kWh per month will see an average annual bill increase of approximately $14.64 per month, or about 9% overall. During periods of higher usage, particularly in the summer months, the impact will be greater.  

According to filings submitted on March 28th to the Delaware Public Service Commission (PSC Docket No. 26-0389), the increases include: 

For residential customers: 

• Summer SOS electricity rates increasing 19%, from $0.093569/kWh to $0.111063/kWh.  

• Winter SOS electricity rates increasing 20%, from $0.094804/kWh to $0.114049/kWh.  

For residential heating customers: 

• Summer SOS electricity rates increasing 18%, from $0.093404/kWh to $0.110159/kWh.  

• Winter SOS electricity rates increasing 17%, from $0.085805/kWh to $0.100515/kWh. 

At the same time, Delmarva filed its annual Renewable Portfolio Standard charge adjustment (PSC Docket No. 26-0391), reflecting lower renewable compliance costs: 

• The Renewable Compliance Charge (Wind & Solar) will decrease by about 11%, from $0.005797/kWh to $0.005172/kWh. But because this charge represents a much smaller portion of customers’ bills, it only slightly offsets the increase to the SOS supply charge.  

In addition to the SOS supply rate increase, in December 2025, Delmarva made two filings with the Commission seeking additional money from Delmarva electric customers. First, an increase in “base rates” that would translate into an additional $67.8 million annually paid by customers to Delmarva. DPA has retained independent experts, is rigorously reviewing Delmarva’s application, and will oppose any improper or imprudent costs that Delmarva is seeking to impose on ratepayers. Second, an “affordability and load flexibility” application that asks for an additional $37 million over three years from Delmarva customers to implement load flexibility and demand reduction programs. DPA believes Delmarva has not followed the process required by the Delaware Energy Act for such programs and has asked the Public Service Commission to dismiss Delmarva’s request. 

Delawareans can find support to manage their energy costs, including help with utility bills, home weatherization services, and other essential assistance programs through Energize Delaware. These resources are designed to ease financial strain and improve home energy efficiency for households across the state.  

The Division of the Public Advocate advocates for the lowest reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and an equitable distribution of rates among all classes of consumers. 

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