Customer Complaint Leads to Refunds for Delmarva Power Customers

DOVER – Spurred by a single complaint from a customer, Delmarva Power will soon issue refunds to thousands of customers impacted by a recently identified billing error.

The New Castle County resident called the Division of the Public Advocate’s office in August with a question about her utility bill. After reviewing the customer’s billing history, the DPA questioned various late payment charges on her bills and contacted Delmarva Power to discuss these concerns.

As a result of this inquiry, Delmarva Power reviewed its files and determined that thousands of customers were due refunds dating back to 2015.

This week Delmarva will begin issuing one-time refunds to affected customers; the average residential refund will be approximately $15.

“This goes to show how important it is to not only pay your utility bills promptly, but to review and understand your billing statements,” said Public Advocate Drew Slater. “The old adage that one person can make a difference rings true in this case. Had this customer not contacted our office and shared her concern, an issue affecting thousands of households may have gone unnoticed.”

“I want to extend my appreciation to Delmarva Power for taking their time in reviewing this case and addressing the issue for all affected customers, and to the customer who contacted our office and brought her concerns to our attention.”

If you have questions about your utility bill, start by contacting your utility provider. Unresolved concerns may be reported to the Division of the Public Advocate, which is able to assist public utility customers. The Division of the Public Advocate can be reached at 302-577-5077, 302-241-2555, or via public.advocate@delaware.gov.

The 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.

Public Advocate Calls on White House to Deny Subsidies for Coal and Nuclear Plants

Dover, Del. – Delaware’s Public Advocate today issued a letter to the White House asking the Trump administration to deny a request for emergency bailouts for aging coal and nuclear power plants owned by a large regional energy supplier.

The letter addresses a recent filing from Ohio-based FirstEnergy Solutions asking the federal Department of Energy to issue an “Emergency Order” directing subsidies to the company’s plants using funds from ratepayers’ electric bills in Delaware and other states in the PJM region.

“Not only has FirstEnergy not shown why coal and nuclear subsidies are needed, but they are trying to circumvent the deliberative process that is ongoing at PJM,” said Delaware Public Advocate Drew Slater. “In a free market, price is a key determinant in business decisions. As coal and nuclear plants become uneconomic, ratepayers should not be forced to prop up old and inefficient technology just to protect the profits of a big power company.”

This week PJM, the regional grid operator serving 13 states and the District of Columbia, performed a reliability analysis given FirstEnergy’s recent bankruptcy and Emergency Order filings. PJM found that phasing out FirstEnergy’s coal and nuclear plants as scheduled would have no adverse effect on the reliability of the electric grid.

“Given that PJM has stated the system remains reliable, and absent a true emergency need, which has not been demonstrated, to subsidize uneconomic coal and nuclear plants, I ask that FirstEnergy’s request for an emergency order be denied,” Slater said.

In addition to the White House letter, the Division of the Public Advocate has intervened in the FirstEnergy case pending before the federal Department of Energy and provided comment on the proposed order along with many other stakeholders, including the Delaware Public Service Commission.

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.

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.

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 Carney and Maryland Governor Larry Hogan Continue Fight Against Artificial Island Cost Allocation, Unfair Rate Hikes

Maryland, Delaware Governors Call on PJM to Support Request for FERC Rehearing

WILMINGTON, Del. – Governor Carney on Thursday released a joint letter with Maryland Governor Larry Hogan to the Chair of PJM Interconnection’s Board of Managers, opposing the cost allocation of the $279 million Artificial Island transmission line project, which would continue to unfairly burden electric ratepayers in Delaware and across the Delmarva Peninsula.

Delmarva homeowners and businesses would see their electric bills rise to cover 90 percent of the cost of the project, while receiving little in the way of a direct benefit.

“This is a bad deal for electric ratepayers in Delaware and across Delmarva,” said Governor Carney. “I’m proud to stand with Governor Hogan to oppose the current cost allocation for this project, which would unfairly raise costs for businesses and families in Delaware and across our region. We will continue to work with the Public Service Commission, Delaware’s Public Advocate, members of the General Assembly and our congressional delegation to protect Delmarva ratepayers.”

“Since the beginning of this process, our administration has expressed our opposition, frustration, and disappointment about the burdensome costs associated with this project,” said Governor Hogan. “Delmarva Peninsula taxpayers should not have to disproportionately pay hundreds of millions of dollars in rate increases, especially given the majority of the benefits will go to other states.”

Delaware and Maryland have appealed the current cost allocation to the Federal Energy Regulatory Commission. Governor Carney and Governor Hogan urged PJM to support a rehearing in their letter. According to the most recent cost estimates, Delmarva ratepayers would still pay approximately $250 million of the $279 million in the project’s total costs, while receiving little direct benefit.

“As a result, the average residential and commercial customer will pay significantly higher rates,” Governor Carney and Governor Hogan wrote in their letter. “For many families this simply will be unaffordable and for many businesses it could mean closures and job losses. This economic burden to Delmarva is unacceptable.”

Delaware’s Public Service Commission and Public Advocate also have urged the PJM Board to support a rehearing on the cost allocation.

For additional details:

Governor Carney and Governor Hogan’s Letter
Delaware Public Service Commission Letter to PJM Board
Delaware Public Advocate Letter

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