Why are Delmarva Power bills rising so much? How to get some relief and learn more

Yahoo

14-02-2025

Residents from around Delaware have been reporting skyrocketing energy bills from Delmarva Power so far in 2025.
Legislators have called on the Office of Public Advocate to step in to help reduce costs, but both the Office and the utility company have claimed that costs are rising due to inclement weather, despite reports that other utility customers have not experienced the same increase.
Theories also have been floated that part of the reason for the increase is the state's emphasis for utilities to improve their renewable energy portfolio.
Delmarva Power has extended resources for customers to waive late fees and additional tips to reduce energy usage while elected officials plan on holding a meeting to further explain the increase. But, for some residents, that support is not enough while their bills double.
Here's what to know.
Numerous cold snaps have gripped the Northeast since December, and some residents are reporting an equally chilling experience, energy bills reaching multiple hundreds, sometimes thousands of dollars.
A Facebook group called 'Delmarva Power Victims' has amassed nearly 9,000 members. Residents from the Delmarva area have reported nearly double or triple their traditional electric and gas bill prices, and have called for an end to what they are viewing as 'price gouging.'
Delmarva prices have remained a hot topic as energy rates soared in January. Bills have increased by hundreds of dollars for some Delawareans, and some people, like Gerardine Hendrix, who owns a single-family home in Wilmington.
She said her bill doubled in a month, despite being out of the house for most nights and only living with her daughter.
'It's so unfair,' she said. 'I'm glad to pay for improvement but they need to balance the delivery fee and make it reasonable.'
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A petition titled 'Stop Delmarva Power from ripping off taxpayers in the Eastern Shore!' began by Adeel Khan has also received over 16,000 signatures as of Tuesday, Feb. 11 – just two weeks after it was published.
'As a monopoly operating in our area, Delmarva Power has imposed unreasonable costs and failed to provide equitable and transparent services to its customers,' the petition reads.
The petition calls for Gov. Matt Meyer and Maryland Gov. Wes Moore and the Public Service Commission to investigate the company's billing practices, audit the operations of Delmarva Power, break the 'monopoly' of Delmarva Power by allowing for competition and providing residents with alternative energy options.
Maria Cordona lives in Pike Creek, and while she had some payments backed up from an expensive December bill, she does not understand the sudden hikes, which are costing her more than $1200 in January. She wants transparency from Delmarva Power on what the charges mean. Specifically, her delivery fee was higher than her usage fees.
"They need to explain, ' How is that delivery done or completed, or what happens that it's more expensive than the actual supply?" she said.
According to a Delmarva Power president, Phil Vavala, the delivery fee is not a new charge, rather the format of the bill was changed to provide more transparency. Their electric rates were approved in April 2024, and their natural gas rates were last approved in October 2022.
Delmarva Power maintains that the primary driver of the rate hike has been the cold temperatures that have plagued the state's 342,500 electric customers and New Castle County's 140,000 natural gas customers since December. The cold weather has increased electric usage by 40% from November to December 2024, and increased natural gas usage 200% in the same time frame. Those numbers increased again in January by 23% and 50%, while the power company experienced record winter usage for both electric and natural gas in January.
"I'm sure you can appreciate that it takes more energy to heat your home when that occurs when the ambient temperature outside is zero degrees, and surrounding your house, it takes more energy," Vavala said a virtual press conference Thursday. "Our systems need to work harder to be able to help keep our the same temperature inside of our homes there, and we're seeing that across the board."
He said the usage and delivery charges are proportional, and that the charge goes to all of the infrastructure required to bring gas and electricity to a home. He also said usage is more to blame for price hikes than any potential renewable energy costs.
"The more you use, the more your delivery rate is; the less you use, the less the delivery rate is," he said.
In July 2024, PJM, the regional grid manager, held a capacity auction to ensure that it can meet its reliability requirement for the 2025-2026 delivery year. According to PJM Interconnection, auction prices were 'significantly higher' due to decreased electricity supply.
'The significantly higher prices in this auction confirm our concerns that the supply/demand balance is tightening across the [regional transmission organization],' said President and CEO of PJM Manu Asthana. 'The market is sending a price signal that should incent investment in resources.'
In addition to the lower supply, PJM noted that it is also taking longer to build renewable energy generation due to external challenges such as financing, supply chain issues, and siting and permitting issues.
In a letter dated Thursday, Jan. 30, a group of state representatives called on the Office of the Public Advocate to take action in investigating the 'dramatic increases' in energy bills, noted by their constituents.
'While we understand that temperatures were unseasonably cold during this period, these steep increases brought forth appear beyond seasonal weather fluctuations,' the letter reads. 'Additionally, residents who are not served by Delmarva Power have not seen the same changes in their energy bills despite the same cold temperatures experienced by them and their energy providers.'
The Office's Acting Public Advocate Ruth Ann Price sent a letter back on Tuesday, Feb. 4, agreeing with the concerns shared by the representatives, but ultimately chalking the reasoning up to higher usage of electricity and a re-design of the Delmarva bills that could lead to confusion among customers.
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'I understand and share the concerns raised by consumers,' the letter said. 'The higher bills they are seeing is being driven primarily by the unusually cold winter we have been experiencing … The largest driver of electric usage for customers with electric space heating is their HVAC system … the largest driver of natural gas consumption is their gas furnace.'
Price also cited the most recent PJM auction, and said that market reforms are ongoing at the company, but 'upward pressure on prices is expected to continue.' She also stated that Delmarva is currently before the Public Service Commission seeking a natural gas rate increase.
Similarly, the Delaware State Senate Republican Caucus posted on Facebook that in response to the 'numerous' complaints about the sharp increases, members of the caucus met with municipal and co-op providers and energy stakeholders.
'Experts and those in the industry consistently point to federal and state regulations reducing traditional energy generation as being a cause of inflated rates as mandated green energy investments fail to meet growing demand,' the caucus wrote. 'While there is no quick fix, we are committed to introducing legislation to curb rising utility rates.'
Delmarva Power offered some resources attempting to assist customers who are struggling with making the payments such as rescinding late payment fees for January and February 2025 and providing longer periods for repayment, suspending disconnections for nonpayment in February 2025 and waiving deposits for disconnected customers who are seeking to restore services.
The utility company also listed tips to reduce energy usage such as maintaining heating systems, lowering water heater temperatures, managing thermostat levels and utilizing high usage alerts and energy usage information listed on the company's website.
Sen. Stephanie Hansen will hold a hearing on the rising energy bills with the Senate Committee for Environment, Energy and Transportation Committee, Delmarva Power, the Public Service Commission and the Delaware Office of the Public Advocate.
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In a statement to The News Journal, Hansen said the state has the power to set the rates that Delmarva Power can charge for electric and gas supplies and deliveries through the Public Service Commission and the Division of the Public Advocate. It can also change statutory requirements like renewable energy and public purpose programs to support low-income customers. Those changes make up a small part of the bills, she said.
Hansen said the goal of the meeting is to hear from Delmarva Power to see what can be done in response to steep winter prices.
"I suspect that we will see quick action," she said in her statement. "But we need to determine the best levers for making an impact."
A Delmarva Power spokesperson said there is not much they can do with their current process, which they said was fully regulated and approved by the state.
"Everything that customer sees is either something that has been approved by the Public Service Commission and or is a mandate from the state of Delaware," the spokesperson said.
The hearing will be held on Friday, Feb. 14 from 10 a.m. until 12 p.m. in Legislative Hall's Senate Chamber. The hearing can also be streamed online here.
Molly McVety covers community and environmental issues around Delaware. Contact her at [e-mail]. Follow her on Twitter @mollymcvety.
Shane Brennan covers New Castle County with a focus on Newark and surrounding communities. Reach out with ideas, tips or feedback at [e-mail]. Follow @shanebrennan36 on X, formerly Twitter.
This article originally appeared on Delaware News Journal: Delmarva Power bills are skyrocketing. Hearing to be held on prices