Delmarva Power customers across Maryland could see improvements in their electric service — along with a roughly 2 percent increase in their electric bill — under the company’s recently announced multi-year investment proposal to modernize their energy services starting in 2023, company executives said in a statement.
The three-year plan, filed with the Maryland Public Service Commission on May 19, promises to invest hundreds of millions of dollars into the local energy grid and other customer service improvements, the statement said.
“Investments in the local energy grid means significant improvements in the quality of service we are providing our customers,” said Tyler Anthony, President and CEO of Pepco Holdings, which includes Delmarva Power.
“From powering the farms that are providing the food on our tables to keeping the lights bright and the rides going in our beach communities during the heat of summer, the work in this plan will help us to power the lives of our customers and communities we are privileged to serve,” he said.
Within the proposal, Delmarva Power pledges to accelerate the company’s tax benefits in order to offset energy rate increases for customers by 50% in 2023 and 25% in 2024, according to the statement.
This means in 2023, the average Delmarva Power customer using 1,004 kilowatt hours per month would experience a 2.11 percent increase – or a $3.42 upward adjustment – in their total bill. In 2024, customers would see an upward adjustment of $3.50, and then to $4.37 in 2025.
This gradual increase is designed to “spread costs associated with the company’s planned efforts across several years, providing customers the opportunity to plan for future adjustments to their energy bill,” the statement read.
“We understand our customers are still facing the challenges of recovering from the pandemic while also dealing with the very real negative impacts of inflation and rising prices for the products and services they are using each day,” Anthony said.
“This multi-year plan approach provides us the ability to help our customers by reducing the cost impact of these energy investments, while at the same time we can continue to ensure we meet our customer’s expectations of us, including providing cost saving energy efficiency programs that help customers manage their energy usage,” he said.
The multi-year proposal outlined by Delmarva Power aims to improve customer service by fortifying the local electric grid, expanding system interconnection, and installing new automated energy equipment, according to the statement.
The proposal is the first plan of its kind to be filed by Delmarva Power and the third in the state of Maryland.