Delaware Governor Urges PSC to Keep Delmarva Power Rates Steady

Governor Matt Meyer has asked the Delaware Public Service Commission (PSC) to freeze Delmarva Power’s proposed distribution rate hikes, citing concerns over affordability amid rising energy costs. The request, made in a formal letter to the commission, comes as the utility prepares to seek approval for rate adjustments expected to impact residential and commercial customers across Delaware.

According to a statement from Meyer’s office, the governor’s intervention follows months of advocacy from consumer groups and state lawmakers who argue the proposed increases would disproportionately burden low- and middle-income households. Delmarva Power, which serves approximately 1.2 million customers across Delaware, Maryland, and Virginia, has not yet commented on the governor’s request but has previously stated that the rate adjustments are necessary to cover rising operational costs, including infrastructure upgrades and compliance with federal environmental regulations.

The PSC, which regulates utility rates in Delaware, is scheduled to review Delmarva Power’s rate case later this year. If approved, the proposed hikes—estimated at an average of 8% for residential customers—would take effect in early 2027. Meyer’s office emphasized that the governor’s request is not an opposition to all rate adjustments but seeks a delay to allow for further analysis of the financial impact on Delawareans.

Why is the governor intervening now?
Meyer’s move comes as energy prices remain volatile following federal policy shifts and supply chain disruptions. A report from the Delaware Department of Natural Resources and Environmental Control (DNREC) earlier this month highlighted that nearly 30% of Delaware households spend more than 6% of their income on energy costs, a threshold often cited as unaffordable. The governor’s office did not specify whether the PSC has a timeline for responding to the request, but commissioners typically issue decisions within 90 days of receiving formal petitions.

What happens next for Delmarva Power customers?
Customers currently under Delmarva Power’s service area—covering all of New Castle County and portions of Kent and Sussex—face uncertainty. The utility has not withdrawn its rate case, meaning the PSC could still approve the hikes even if the governor’s request is granted. However, industry analysts note that such interventions often prompt utilities to negotiate lower increases or offer temporary relief programs.

Delaware’s PSC has a history of balancing utility needs with consumer protections. In 2023, the commission approved a 5% rate reduction for low-income customers after public outcry over similar proposals. The current case may follow a similar path, with potential concessions from Delmarva Power to avoid broader regulatory scrutiny.

How does this compare to neighboring states?
Delaware’s approach contrasts with Maryland, where regulators recently approved a 12% rate increase for Delmarva Power customers in that state, citing urgent infrastructure needs. Virginia, which also falls under Delmarva’s service area, has seen mixed outcomes: while some localities have pushed for rate caps, others have deferred to state-level decisions. The disparity underscores Delaware’s unique position in negotiating utility rates, where political intervention—such as Meyer’s letter—can directly influence commission decisions.

For now, Delmarva Power customers are advised to monitor updates from the PSC and the governor’s office. No immediate changes to billing are expected, but the utility has encouraged customers to submit comments on the rate case through its public portal. The PSC’s next hearing on the matter is tentatively scheduled for October 15, though dates may shift based on the volume of public input.