We share Governor Meyer’s Concerns Around Affordability

Delawareans are rightly frustrated by rising costs — from groceries to housing to energy bills. Governor Meyer has voiced that frustration, and we agree on a fundamental point: electricity must be affordable for our customers. Where the conversation needs greater clarity is on why electric bills are rising and what it takes to keep power safe and reliable for Delaware.

More than 80 percent of what we earn goes back into the grid

I first want to address utility profits, because the characterization circulating right now is not accurate. First, Delmarva Power does not make money on the cost of electricity supply; that cost is passed directly to customers. The majority of our earnings come from investments in infrastructure that regulators have reviewed and approved, and only at rates the Public Serve Commission (PSC) determines are fair for both customers and the company. This model exists to ensure utilities can attract the capital — or investors — needed to maintain critical infrastructure while remaining accountable to the public interest. And our profit is not going right to the hands of our shareholders: when you look at historical averages, since 2016, Delmarva Power has reinvested 80% of profits directly back into the system.

Delmarva Power does not raise rates on its own. Any proposed rate change goes through a public, transparent process overseen by the PSC. Consumer advocates, elected officials, and customers all have the opportunity to participate before regulators decide what is fair and reasonable.

Higher electric bills are tied to supply cost

A significant driver of higher electric bills is outside Delmarva’s control: rising wholesale energy and capacity costs set by PJM Interconnection, the regional grid operator that manages electricity supply for 65 million people across 13 states. Those costs are increasing as demand for electricity grows — driven by data centers, electrification, and economic expansion — while older power plants retire faster than new generation comes online.

Our investments help customers have a more reliable system

Delmarva Power’s current rate case proposal focuses on something different, and something we can control: the delivery system — the poles, wires, and substations that power homes and businesses every day. Much of this infrastructure is nearing the end of its useful life, and its age is exacerbated by the severe storms and extreme weather becoming more frequent and intense, putting unprecedented stress on the grid. Investments in grid modernization, and storm hardening, are about preventing outages, restoring service faster when storms strike, and keeping communities safe.

Delaying these investments does not make them cheaper. In fact, postponement often results in higher costs later, larger construction projects, and greater disruption for customers. Also, it’s important to note that our rate case seeks to recover costs for investments we’ve already made to improve the system – some of which have been delivering benefits since as far back as 2022.

We are committed to helping our customers manage costs

Regardless of how important these investments are, we recognize that even modest increases can be difficult for many households. Delmarva Power administers and funds customer assistance, payment plans, and energy efficiency programs that provide meaningful bill relief, particularly for income‑qualified customers. Expanding those programs is part of our proposal — because reliability means little if service is unaffordable for those who need it most.

Transparency and accountability are built into every step of this rate process, as it should be. We welcome scrutiny and a fact‑based discussion about how to modernize the grid while protecting consumers. However, oversimplifying a complex system and treating reliability investments as optional won’t help Delawareans.

The major issues of rising demand, aging infrastructure, and climate‑driven extreme weather — are shared ones that require collaboration among utilities, regulators, policymakers, and grid operators. DPL stands ready to work with state leaders to deliver an energy system that is affordable, resilient, and worthy of the trust our customers place in us every day.