Tag: Delmarva Power

In Which We Find Delmarva Power Using Ratepayers For Capital Financing

Or, Delmarva wants its ratepayers to take on more of the risk of capital project construction while they retain the profits from the use of that project.  Via the NJ, they are touting this as an innovative rate approach — one that will allow customers some stability in their bills for a few years:

Under Delmarva’s new plan, the utility and the PSC would agree upon Delmarva’s spending ahead of time, planning four years into the future. Delmarva officials call the plan innovative, saying they are unaware of any other arrangement like this at comparable electric utilities around the country.

Delmarva officials say the plan would give regulators more input into the utility’s spending before it happens. “I think it’s a better process when you all work together on a plan,” said Glenn Moore, Delmarva’s regional vice president.

The plan would reduce what the utility calls “regulatory lag” – the time between when Delmarva spends money, and when the PSC approves Delmarva getting the money back from customers, along with a profit margin.

So. Delmarva charges you more and puts the excess in the bank to fund some future capital spending project.

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