Consumer Alert: Number Spoofing Targets Delmarva Customers

DOVER – Over the past week, the Delaware Public Service Commission (PSC) and Delaware Division of the Public Advocate have received numerous complaints of third-party electricity suppliers “spoofing” phone numbers in an effort to sign up households for new service contracts.

Customers report that the phone calls appear to come from the Delmarva Power emergency line or customer service department. Without identifying themselves, the callers will attempt to persuade customers to change their electricity supplier, promising savings on their utility bills.

“Spoofing is the act by which an unscrupulous company uses a phone number other than its own to call and make solicitations to customers who may not otherwise answer the phone,” said Public Advocate Drew Slater. “Spoofing phone numbers from Delmarva Power, especially the emergency number, is a dangerous and dishonest practice that must stop immediately. However, we can only do that with your help.”

The PSC and Public Advocate can pursue formal action against the company or companies engaged in this activity, but only if the name of the company is known.

If you receive a call like this, do not provide any personal information, including your account number. Ask the caller for the name of the company they are representing, and report it immediately by calling the Public Advocate at 302-241-2555.

Do not agree to accept any offers or change your electricity service until you have had the opportunity to thoroughly review the terms in writing.

“These actions reflect poorly on legitimate third-party electric suppliers serving Delaware,” said Raj Barua, Executive Director of the PSC. “I strongly encourage all suppliers to comply with the Public Service Commission’s rules and regulations regarding solicitation of customers before more formal action is taken.”

Under Delaware law, households and businesses are entitled to choose their electricity supplier from an approved list of companies that are licensed by the PSC. These third-party suppliers offer a variety of pricing plans and structures; consumers are encouraged to compare and choose the best option for them.

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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Dr. Rajnish Barua named Executive Director of the Delaware PSC

DOVER – Dr. Rajnish (Raj) Barua has been selected to serve as the new executive director of the Delaware Public Service Commission (PSC), filling the position to be vacated by Robert Howatt this month. Dr. Barua will begin his tenure as executive director on June 1.

“Raj brings an amazing depth and breadth of regulatory policy experience to the DEPSC. In addition to management experience, he has taught energy policy at the University of Delaware, served on the operating committee of NERC, and has extensively trained energy regulators internationally,” said PSC Chairman, Dallas Winslow.

Dr. Barua, a resident of Newark, has nearly three decades of experience in regulatory policy, restructuring of the electric industry, regional energy markets, and other related matters. Most recently he served as executive director of the National Regulatory Research Institute. Prior to that he was executive director of the Organization of PJM States Inc., energy advisor to the chairman of the Pennsylvania Public Utility Commission, director of the Integrated Resource Planning Division of the Maryland Public Service Commission, a regulatory policy administrator with the Delaware Public Service Commission, and deputy principal assistant to the Delaware Division of the Public Advocate. Dr. Barua holds a PhD from the University of Delaware, specializing in energy policy.

Mr. Howatt retires from the executive director post after fifteen years with the PSC, serving in a variety of roles. While serving as director, he led several important initiatives involving the PSC staff, including the $6.8 billion Exelon-Pepco Holdings Inc. merger proceeding, which was a significant win for Delaware utility ratepayers.

“I’d like to commend Bob Howatt for a job well done serving the people of Delaware and working to ensure fairness and predictability in our utility market,” said Secretary of State Jeffrey Bullock. “I also welcome Dr. Raj Barua back to service with the PSC. I know we will benefit greatly from his wealth of experience in our regional energy sector.”

The Delaware Public Service 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.

The executive director is responsible for the planning, management and overall operation of the Delaware Public Service Commission and ensuring just and reasonable regulation of Delaware’s public utility service companies.

MEDIA CONTACT: Samantha Hemphill, PSC Ombudsman, 302-505-2741

Commission Approves Public Advocate’s Petition to Reduce Utility Rates in Light of Federal Tax Cuts

DOVER – The Delaware Public Service Commission yesterday approved a petition from the state’s Public Advocate to ensure that consumers will receive the benefits of any savings realized by regulated Delaware utilities under the federal Tax Cuts and Jobs Act of 2017.

The order directs each regulated utility to estimate the impact of the new tax scheme on the utility’s cost of service, and to propose procedures for reducing rates to reflect those impacts on or before March 31, 2018.

“This is about making sure Delaware consumers get a fair deal from their utility providers, and I’m pleased that the Public Service Commission has acted in support of that goal,” said Gov. John Carney. “I want to thank our Public Advocate for fulfilling his duty to the ratepayers, and the PSC for adopting this order.”

Delmarva Power, which recently filed applications for both electric and natural gas rate increases, agreed with the Public Advocate that the Tax Act should reduce the level of federal income taxes included in its rates. Delmarva will adjust its proposed increases in both of its pending rate cases.

“Today was a win for ratepayers. We want to thank the Commission for its decision, the members of the public who submitted comments, and the bi-partisan group of Delaware legislators who wrote in support of our petition,” said Public Advocate Drew Slater. “With this order, we look forward to ensuring that Delaware ratepayers benefit from this corporate tax reduction in the form of lower rates for utility services statewide.”

“This is a wonderful example of a great Public Advocate doing his duty in a truly effective manner,” said state Rep. John Kowalko, D-Newark. “So much praise also goes to the 36 legislators who signed on in support. It shows how important it is to ensure that ratepayers are treated fairly when corporations are given a windfall.”

All rate classes of all regulated utilities will likely see reduced rates, with procedural schedules to be set for hearings before the Commission. In approving this petition, Delaware joins several states that have instructed utilities to ensure that ratepayers receive the full benefit of federal tax cuts realized by utilities.

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.

Governor Carney, Governor Hogan Urge FERC to Expedite Review of Artificial Island Cost Allocation

As currently funded, $278 million project would unfairly burden electric ratepayers on Delmarva

WILMINGTON, Del. – Delaware Governor John Carney and Maryland Governor Larry Hogan on Tuesday sent a letter to members of the Federal Energy Regulatory Commission, urging commissioners to expedite their review of the $278 million Artificial Island transmission line project and consider a financing model that does not unfairly burden electric ratepayers on the Delmarva Peninsula.

Governors Carney and Hogan urged FERC to consider alternative cost methodologies presented in June by PJM’s Board of Managers. Under PJM’s alternative methods for cost allocation, Delmarva ratepayers would fund approximately 7-10 percent of the project costs.

As currently financed, residential and commercial electric ratepayers on Delmarva would fund more than 90 percent of the cost of the project through higher electric bills, while receiving few of the project’s direct benefits. Governors Carney and Hogan previously appealed the cost allocation to FERC, and urged PJM to support a more equitable solution for ratepayers on Delmarva.

“We remain optimistic that FERC will consider a financing plan for this project that will not unfairly burden businesses and families on the Delmarva Peninsula,” said Governor Carney. “As we’ve said all along, as currently financed, this is a bad deal for Delaware ratepayers, who would be asked to finance this project, while receiving few direct benefits. Thank you to FERC commissioners for considering our request to expedite their review. And thank you to Governor Hogan for his continued partnership and leadership on this issue.”

“Our administration has expressed our repeated opposition to any proposal that unfairly and inequitably allocates the costs associated with this project,” said Governor Hogan. “Maryland will continue to stand with Delaware to protect our citizens from disproportionately paying hundreds millions of dollars in rate increases, and we will continue to work with all stakeholders to reach a speedy, reasonable, and equitable solution to this process.”

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Governor John Carney and Governor Larry Hogan Respond to PJM Reevaluation of Artificial Island Cost Allocation

WILMINGTON, Del. – On Thursday, PJM’s Board of Managers agreed to provide additional data and analysis that could lead to a new cost allocation for the $279 million Artificial Island transmission line project.

The decision comes a week after Governor John Carney and Maryland Governor Larry Hogan urged PJM in a letter to assist Delaware and Maryland in opposing the current cost allocation. As currently funded, Delmarva Peninsula ratepayers would fund 90 percent of the cost of the project through higher electric bills, while receiving few direct benefits.

“Under the current cost allocation, this project is a bad deal for Delawareans and Delaware businesses,” said Governor Carney. “We are hopeful that new data and analysis from PJM will help lead to a fair cost allocation – one that doesn’t ask ratepayers on Delmarva to pay higher electric bills, without receiving much in return.”

“Without action from federal regulators, Maryland residents and businesses still stand to pay an unfair share of the costs. With that in mind, we welcome any action on PJM’s part to address our serious concerns,” said Governor Hogan. “This is a step in the right direction, but we will continue to advocate for fair and equitable division of costs among ratepayers.”

Delaware and Maryland have appealed the current cost allocation to the Federal Energy Regulatory Commission (FERC). Governor Carney and Governor Hogan urged PJM to support the rehearing in their letter.

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