Public Service Commission Approves Decrease in Delmarva’s Natural Gas Costs

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.

Delmarva Power Files Request For $72.3 Million Rate Increase

Rate increase is one of the largest requested by the utility

On December 15, 2022, Delmarva Power filed an application with the Public Service Commission to increase its electric distribution rates by $72.3 million. Pursuant to state law, this increase will become effective on a temporary basis on July 15, 2023, subject to refund, pending a final decision by the Public Service Commission.

Delmarva Power’s request for an increase in electric distribution rates comes on the heels of a $16.7 million increase approved by the Public Service Commission on August 5, 2021.

If approved as requested, Delmarva Power residential and residential electric space heating customers will experience an additional increase of 8.35 percent and 13.2 percent, respectively, in their electric distribution charges. A typical residential non-space heating customer using 844 kWh per month would see an additional increase of $10.41 per month to their total bill, and a residential space heating customer would see an additional increase of more than an $11 per month to their total bill.

“As customers are struggling to pay bills, Delmarva Power is seeking one of the largest electric distribution rate increases we have ever seen,” said Delaware Public Advocate Andrew Slater. “Simply put, reliability is extremely important but so, too, is affordability. No customer should have to choose between paying for their utility service or paying for other essential needs. It’s long past time costs are reined in just as many of their customers are trying to do.”

This requested distribution rate increase of roughly 25 percent follows a near 60 percent increase in natural gas supply rates over the past two years.

Delmarva Power’s reliability is in the first quartile of all U.S. utilities for reliability. Even so, Delmarva Power intends to spend $430 million on plant over the next three years. This represents an increase of 155% over Delmarva’s 2019 plant spending.

The Public Service Commission will hold a public comment session once a procedural schedule is established. Written comments may be sent by mail to Delaware Public Service Commission, Docket No. 22-0897, 861 Silver Lake Boulevard, Suite 100, Dover, DE 19904, or by e-mail to psc@delaware.gov, Attn: Docket No. 22-0897.

Delawareans can contact Energize Delaware about its Home Performance with Energy Star, and Home Energy Counseling and Check-Up programs. These programs could potentially produce energy savings. Consumers may learn more at: https://www.energizedelaware.org/.

Additional programs, such as weatherization and the Low-Income Home Energy Assistance Program (LIHEAP) may be able to help customers save on energy costs. Customers can review eligibility requirements for both programs by calling 302-504-6111 for the Weatherization Assistance Program and by calling Catholic Charities for LIHEAP assistance at 302-654-9295 (New Castle County), 302-674-1782 (Kent County), or 302-856-6310 (Sussex County).

The role of the Delaware Public Advocate is to advocate for the lowest reasonable rates for residential and small commercial utility consumers, consistent with a fair distribution of rates and maintaining reliable utility service. To learn more about the Division of the Public Advocate, click here.

DNREC announces release of preliminary data from USGS unconfined aquifer water quality study

DOVER – The Department of Natural Resources and Environmental Control’s Division of Water today announced the release of preliminary data from the ongoing United States Geological Survey (USGS) unconfined aquifer water quality study in Delaware.

The USGS is in the process of completing the third in a series of ongoing studies conducted over the past 20 years. These studies focused on the ground water quality in a selection of public water systems statewide. Started in 2000, the USGS studies have been designed to assess existing raw-water quality relative to established drinking water standards and emerging interests. In each iteration, the study has included analytes beyond the standard regulatory scope with the addition of per- and poly-fluorinated substances (PFAS) in the current effort.

Consistent with the previous studies, specific compounds were detected above standards at a few locations. DNREC’s review of this preliminary data indicates that overall water quality in the State of Delaware is generally good in respect to the broad suite of compounds detected. PFAS were detected in isolated locations which shows similar distribution to other emerging compounds in the past. Of the 30 sampling locations, PFAS was identified in the unconfined aquifer water above the current Federal Health Advisory Limit (HAL) of 70 parts per trillion in only two isolated locations. In both instances, DNREC, in conjunction with the Department of Health and Social Service’s Office of Drinking Water (DHSS-ODW), and the water providers, confirmed that treated water quality meets the drinking water standards, including the unregulated compounds. While the sampling was done at locations of public wells, the USGS results reflect unconfined aquifer water prior to any treatment supplied by water utilities, and do not reflect served water quality.

While the USGS is in the process of finalizing the report, verified preliminary data can now be accessed by the public through the National Water Information System (NWIS). It is anticipated that the USGS study summarizing the results of their analysis of over 500 compounds will be completed in the spring of 2020. This data, in comparison with the results from the 2000 and 2008 studies, will provide a detailed baseline of water quality in the unconfined aquifer throughout the state that can be used by DNREC and partnering agencies in making water resource management decisions.

CONTACT: Michael Globetti or Joanna Wilson, DNREC Public Affairs, 302-739-9902

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Governors Carney and Hogan, Delaware’s Federal Delegation Issue Statements on FERC Artificial Island Ruling

Ruling will significantly reduce cost of project for Delaware businesses and residential ratepayers

WILMINGTON, Del. – The Federal Energy Regulatory Commission has denied a rehearing request on the cost allocation for the $278 million Artificial Island transmission line project, and established a fair allocation that will significantly reduce future costs for businesses and residential electric ratepayers on Delmarva.

As previously calculated, businesses and families in Delaware and Maryland would have funded more than 90 percent of the costs of the project, while receiving a fraction of the benefits. The adjusted allocation will reduce Delmarva’s share of the cost to just over 10 percent – resulting in more than $200 million in savings to families and businesses on the peninsula.

Governor Carney and Maryland Governor Larry Hogan issued the following statements on FERC’s ruling:

“All Delaware families and businesses who pay electric bills every month had a stake in this issue. This decision means Delawareans won’t unfairly bear the cost of this project in their electric bills, and everyone will pay their fair share,” said Governor Carney. “We understand there may be appeals, but this is a real win for Delawareans and our neighbors across the Delmarva Peninsula. We worked closely with Governor Hogan, members of our federal delegation, the Delaware Public Service Commission, and Delaware’s Public Advocate to achieve a fair outcome for Delawareans. I want to thank the members of the Federal Energy Regulatory Commission for their consideration of this important issue, and for their fair decision on behalf of the people of Delaware.”

“Since the beginning of this process, our administration has worked tirelessly to ensure that Delmarva Peninsula ratepayers and taxpayers did not have to disproportionately pay hundreds of millions of dollars associated with this project,” said Governor Hogan.”The decision from the Federal Energy Regulatory Commission, to significantly reduce future costs to just over 10 percent, is a win for both Maryland and Delaware citizens. We will continue to work with all parties to ensure an equitable solution is reached for our citizens, and we thank Governor Carney for his partnership as well as the commission for their important work on this issue.”

Previously, Governor Hogan and Governor Carney sent a joint letter opposing the cost allocation and urged the commission to expedite their review of the project.

Delaware’s federal delegation – Senators Tom Carper and Chris Coons, and Congresswoman Lisa Blunt Rochester – also issued the following statement on FERC’s ruling:

“The Federal Energy Regulatory Commission’s decision is one that we’ve been working toward for a long time now. Our Delaware and Maryland ratepayers were being asked to pay an unfair share of this project, and we went to work to prove this. FERC’s corrected course is just the outcome we hoped to deliver to ratepayers on Delmarva, and was a great team effort on behalf of all of our constituents.”

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Governors Carney and Hogan on FERC Grants Rehearing for Cost Allocation on Artificial Island Transmission Line

WILMINGTON, Del. – Governors John Carney of Delaware and Larry Hogan of Maryland released the following statement today in response to action by the Federal Energy Regulatory Commission (FERC) to grant a rehearing to consider a lower cost allocation for Delaware and Maryland ratepayers related to the $278-million Artificial Island transmission line project:

“Almost two years to the day since grid operator PJM approved the building of the Artificial Island transmission line, FERC has agreed with our request to grant a rehearing to consider more fairly allocating the costs of the project. Under the current cost allocation, residents and businesses in Delaware and Maryland would fund the vast majority of the project through higher electric bills, while receiving few direct benefits. As we have said all along, that is a bad deal for the residents of our states. We are pleased FERC has granted a rehearing.

“Last summer, PJM published a report detailing two alternative methodologies for identifying the beneficiaries of the Artificial Island project. These methods produced a result that better represented the regional benefits to be obtained, and we are thankful to FERC for recognizing the validity of these alternatives and granted this paper rehearing.

“Over the past several years, we repeatedly expressed our concerns over the previous cost allocation methodology, which put more than 90 percent of the cost of the transmission line on Delmarva Zone ratepayers. As we have stated many times, most recently in our November 27, 2017 letter to FERC, we are not opposed to the Artificial Island project itself, but object to unfair and unreasonable costs for our residents and businesses.”

The order from FERC approving the request for rehearing stated, “[they] find that it is unjust and unreasonable to apply PJM’s solution-based DFAX (previous methodology) cost allocation method to Regional Facilities, Necessary Lower Voltage Facilities, and Lower Voltage Facilities that address stability-related reliability issues, including the Artificial Island Project. To determine the just and reasonable rate to be applied, we are establishing a paper hearing procedure.” This procedure is due within 60 days.

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