On Wednesday, the Delaware Public Service Commission approved a 23% decrease in Delmarva Power’s natural gas costs, effective April 1st.

On Friday, February 24, 2023, Delmarva Power filed an application to amend its Gas Cost Rate (GCR) due to a warmer-than-expected winter and lower-than-forecasted natural gas prices over the past several months. The GCR represents the total purchased gas cost for natural gas service (not the pipes, meters, and other expenses).

An average residential gas customer will see a $5.41 decrease in their bills with usage on and after April 1st.

“We realize customers have seen higher utility bills over the winter as natural gas costs increased last year. We’re pleased that the Commission took this action and that we’re able to tell customers that a modest amount of relief is on the way,” said Matt Hartigan, Executive Director of the Public Service Commission.

The Commission approves natural gas commodity costs on an annual basis, usually every November. The rates can be adjusted throughout the year to ensure that regulated utilities are not over or under-collecting more than what is allowed by the Commission.

According to the U.S. Department of Energy, heating accounts for the biggest portion of consumers’ utility bills. Savings tips include turning your thermostat down a few degrees, replacing dirty furnace filters, weather-stripping doors and windows, opening shades on sunny days, and closing vents and doors of unoccupied areas.

Delawareans can contact Energize Delaware about its Home Performance with Energy Star, Home Energy Counseling and Check-Up programs. These programs are designed to find areas that may need weatherization and could potentially produce savings.

For additional tips on lowering your gas bill, please contact your local utility.

• Delmarva Power provides such tips at: https://www.delmarva.com/Documents/Ways%20to%20Save%20Delmarva_2.20_ADAcomp.pdf.
• Chesapeake Utilities provides such tips at: https://chpkgas.com/energy-efficiency/energy-efficiency-tips/

Additionally, low-income Delawareans who are in need of financial assistance to meet their home energy costs may be eligible for the Low-Income Home Energy Assistance Program (LIHEAP), a program administered jointly by the Delaware Division of State Service Centers (DSCC) and Catholic Charities, Inc. Beginning October 1st through March 31st, eligible households can apply to receive grants to help pay for fuel assistance for home heating, which includes electricity, natural gas, kerosene, propane, coal, or wood. Grants are made to both homeowners and renters.

There is also crisis assistance funding available to help households in crisis during the winter months. Income eligibility for LIHEAP is defined as 200% of the federal poverty level. For more information on LIHEAP or to apply, click here.

The Delaware Public Service Commission was established to provide oversight of investor-owned public utilities in the State of Delaware. The Commission works to ensure safe, reliable, and reasonably priced electric, natural gas, water, and wastewater services. The Commission also has limited regulatory authority over telephone and cable television rates and services.

Dover, Del.—Natural gas prices have continued to increase this year and are up nearly 60 percent year to date. This is largely due to increased U.S. demand and the ongoing energy crisis in Europe.

According to the Energy Information Administration, about 42 percent of Delaware households rely on natural gas for home heating.

“Due to the increase in wholesale natural gas prices, customers will see a significant increase in their bills during the winter months,” said Delaware Public Advocate Andrew Slater. “However, there are ways to reduce your usage and keep utility bills reasonable. Energy utility bills are some of the only bills where the amount owed is dependent on usage.”

Delmarva Power recently filed changes to its Gas Cost Rate (GCR), PSC Docket No. 22-0726, reflecting an increase in costs for residential customers of more than 48 percent. According to its filing, a typical residential customer using 83 CCF in a winter month would see an increase of more than $25. These rates become effective November 1, 2022, subject to refund, while the rates are reviewed by both the Division of the Public Advocate and Public Service Commission Staff.

“Many energy conservation ideas are inexpensive and easy to implement. A few small steps can make a big difference in monthly bills. In addition to helping customers save money, energy conservation is also good for the environment,” said PSC Executive Director Matt Hartigan.

According to the U.S. Department of Energy, heating accounts for the biggest portion of consumers’ utility bills. Savings tips include turning your thermostat down a few degrees, replacing dirty furnace filters, weather stripping doors and windows, opening shades on sunny days, and closing vents and doors of unoccupied areas.

Delawareans can contact Energize Delaware about its Home Performance with Energy Star, Home Energy Counseling and Check-Up programs. These programs are designed to find areas that may need weatherization and could potentially produce savings.

For additional tips on lowering your gas bill, please contact your local utility. Delmarva Power provides such tips at https://www.delmarva.com/Documents/Ways%20to%20Save%20Delmarva_2.20_ADAcomp.pdf. Chesapeake Utilities provides such tips at https://chpkgas.com/energy-efficiency/energy-efficiency-tips/.

Additionally, low-income Delawareans who are in need of financial assistance to meet their home energy costs may be eligible for the Low-Income Home Energy Assistance Program (LIHEAP), a program administered jointly by the Delaware Division of State Service Centers (DSCC) and Catholic Charities, Inc. Beginning October 1^st through March 31^st, eligible households can apply to receive grants to help pay for fuel assistance for home heating, which includes electricity, natural gas, kerosene, propane, coal, or wood. Grants are made to both homeowners and renters.

There is also crisis assistance funding available to help households in crisis during the winter months. Income eligibility for LIHEAP is defined as 200% of the federal poverty level. For more information on LIHEAP or to apply, click here.

If you been affected by the COVID-19 pandemic, the Delaware Housing Assistance Program (DEHAP) may be able to assist you with Utility Bill Relief Funding available for utility and fuel bill payments. Potential clients should contact the Delaware State Housing Authority for more information once the program reopens in October.

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 consistent with an equitable distribution of rates among all classes of consumers. 

The Delaware Public Service Commission was established to provide oversight of investor-owned public utilities in the State of Delaware. The Commission works to ensure safe, reliable, and reasonably priced electric, natural gas, water, and wastewater services. The Commission also has limited regulatory authority over telephone and cable television rates and services.

Today, the Delaware Public Service Commission (PSC) released The Final Report assessing the conduct and results of Delmarva Power’s electric Standard Offer Service (SOS) reverse auction process for the 2021-2022 procurement year; the PSC was assisted by its technical consultant, Siemens PTI. Delmarva Power successfully secured all of the outstanding needs for full-requirement service for their electric customers who have not chosen an alternative electric supplier.

The procurement process used a reverse auction process that relies upon bidders’ awareness of the auctions of other bidders in an attempt to drive prices down for both Delmarva Power and customers. Of the twelve companies interested in this year’s Request For Proposals (RFP), eight were eligible to bid: all eight were actual bidders and all eight won a portion of Delmarva Power’s SOS needs. The winning supplies were AEP, Axpo, DTE, Exelon, Hartree, NextEra, TransAlta, and Vitol.

Delmarva held two separate auctions, one in November 2021 and one in January 2022 and acquired approximately 565.8 MWs. The average winning bid for the Residential Small Commercial and Industrial (RSCI) 2-year contract was approximately 20.9% higher than last year. For the Medium (MGS), Large (LGS), and Primary (GS-P) general service customers, the average winning bids ranged from an increase of 28.5% to 46.4% compared to last year’s bids.

Based on the bid prices alone, the approximate change in the average monthly bill by customer class is as follows:

• 0.67% increase for RSCI class;
• 1.82% to 2.08% increase for the SGS class;
• 12.41% to 15.41% increase for the MGS class;
• 17.32% to 18.55% increase for the LGS class; and
• 2.77% to 28.52% increase in the GS-P class.

These are only power costs and do not include various other costs that are subject to change on the bills. The full version of the Technical Consultant’s Final Report can be found on the PSC’s website by clicking here.

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Media Contact: Samantha Hemphill at (302) 736-7564

Secretary of State Jeffrey Bullock has appointed Matthew Hartigan as Executive Director of the Public Service Commission. Mr. Hartigan has served in roles as the Ombudsman for the Commission and more recently as the Deputy Director since April 26^th, 2015. Matt joined the staff over nine years ago.

“Matt’s experience and work for more than nine years have positioned him well to take over the reins at the Public Service Commission,” said Secretary Bullock.

“Matt has a strong working knowledge of everything we do and has been actively involved in key proceedings at the PSC for the past nine years,” said Commission Chair Dallas Winslow. “He is well respected by the staff and key stakeholders and is actively involved in several National Association of Regulatory Utility Commissioners subcommittees. I look forward to his continued leadership and guidance of the PSC Staff.”

“I am honored and humbled to be appointed Executive Director of the Public Service Commission. We have an outstanding staff that does a great job balancing the needs of regulated utility customers and the companies we regulate,” said Matthew Hartigan.

The Public Service Commission was created in 1949 to regulate investor-owned public utilities in Delaware. To learn more about the Public Service Commission, click here.

DOVER – The Delaware Division of the Public Advocate and the Delaware Public Service Commission are urging medium and large businesses that get their electricity from Delmarva Power to contact the utility immediately and ask if they qualify for lower billing rates.

This call to action is a result of a recent investigation conducted by the Public Advocate and staff of the Public Service Commission (PSC), which revealed that more than 5,000 commercial customers of Delmarva Power may be paying higher rates for electricity than their usage warrants.

“Delmarva Power’s commercial customers who qualify for a lower rate are entitled to that rate. Until there is a long-term solution in place, it is extremely important that customers contact Delmarva Power to find out if they are eligible,” said Public Advocate Drew Slater.

The Public Advocate and PSC staff are working with Delmarva on a plan to resolve this issue. However, at this time, it is recommended that all commercial customers receiving Medium General Service (MGS) or Large General Service (LGS) from Delmarva Power call the utility at 1-800-375-7117. When speaking with a customer service representative, customers should be sure to ask, “Do I qualify for a lower rate?” Rate classifications typically can be found on page two of a customer’s electric bill, under “Details of Your Electric Charges.”

“This issue came to light a few months ago and has the potential to impact businesses of all sizes throughout Delaware. We look forward to working collaboratively with Delmarva Power to resolve this issue as soon as practicably possible,” said Matt Hartigan, deputy director of the PSC.

The rate classification issue was first identified in a formal complaint to the PSC filed by a Sussex County business owner last year. The PSC ruled in favor of the customer in December.

The ruling generated news coverage from the Associated Press and additional customer complaints were received by the Public Advocate and PSC staff in recent months.

Upon further investigation, the Public Advocate and PSC staff learned that as many as 5,200 businesses served by Delmarva – more than 35 percent of all the utility’s MGS and LGS customers – may be eligible for lower rates. It is estimated that these commercial customers may be entitled to hundreds of dollars in savings on their electric bills each month.

The Delaware Public Service Commission regulates investor-owned public utilities and works to ensure safe, reliable and reasonably priced service.

The Delaware Division of the Public Advocate advocates for the lowest reasonable utility 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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