Delaware Governor Targets Delmarva Power Rate Model in 2026

Delaware Governor Matt Meyer is pushing state regulators and lawmakers to move before the end of the legislative session to protect ratepayers from a pending rate increase that would take effect July 9. Standing alongside legislators, consumer advocates, and the state's Public Advocate, Meyer called out Delmarva Power and Light by name, arguing that the utility's current profit structure is working against the people it serves.

"Delaware families are getting hit with electric bills they can't afford, all while Delmarva shareholders are raking in record profits," Meyer said at the June 16 event. "

What Delmarva Is Asking For and When

The immediate trigger is Delmarva's pending request to collect an additional $67.8 million annually from customers, with interim rates set to take effect July 9, 2026, subject to final commission review expected later in the year. Of that figure, $44.6 million represents new revenue. The remaining $23.2 million converts existing Distribution System Improvement Charge (DSIC) rates, which customers are already paying on a temporary basis, into permanent base rate costs.

Separately, new electric supply rates took effect June 1, 2026, adding approximately $14.64 per month to a typical residential customer's bill, a roughly 9% overall increase, according to Delmarva's own estimates. The two increases together are projected to raise average monthly bills by roughly 13%, or about $21, for a typical residential customer who currently pays around $157 per month. This is Delmarva's third base rate increase request in five years, following filings that have collectively sought $160 million in additional annual revenue from customers.

The timing drew pointed criticism from Meyer, who noted that Exelon, Delmarva's parent company, reported $7.24 billion in revenue this year, exceeding its own forecast by more than $300 million, at the same moment the utility is seeking more from Delaware ratepayers.

Four Actions the Governor Is Pushing Before June 30

Governor Meyer laid out a specific agenda rather than a general statement of concern. He called on Delaware Public Advocate Jameson Tweedie to file a petition with the Public Service Commission (PSC) asking the commission to reset Delmarva's profit model within six months, with Meyer signing on to that petition himself. If he follows through, he would be the first Delaware governor to formally join such a petition.

The profit model is the core of the dispute. Delmarva is currently seeking a 10.5% return on equity, up from the 9.6% approved in its last rate case. Delaware Public Advocate Tweedie called that request a "complete non-starter" given the affordability pressure customers are already facing. The Governor's intervention moves that challenge up the political chain, framing it as a structural question about whether a guaranteed return is the right model at all, or whether a competitive determination would better serve ratepayers.

The other three actions Meyer called for:

• An immediate PSC rate freeze to protect customers from further increases while the base rate case is reviewed
• Accelerated interconnection timelines for solar projects already approved but waiting to connect to the grid
• Passage of two pieces of legislation before the General Assembly adjourns. Senate Bill (SB) 326, sponsored by Senator Stephanie Hansen, and House Bill (HB) 233, sponsored by Representative Frank Burns, both target ratepayer protections and utility accountability.

HB 233 specifically addresses cost protections for residential customers when large energy users such as data centers seek to locate in the state.

The Broader Context for Energy and Facilities Teams

Delaware's situation is not unique, but the Governor's direct involvement makes it notable. The affordability pressure Delmarva's customers are feeling reflects conditions playing out across multiple utility territories: PJM capacity auction prices hit the Federal Energy Regulatory Commission (FERC) price cap for the 2026-2027 delivery year, supply costs are rising faster than infrastructure can absorb them, and interconnection delays are limiting how quickly new generation can enter the market to compete those prices down.

For energy and facilities managers with operations in Delaware, the July 9 interim rate increase is effectively set absent PSC intervention. The base rate case review continues through late 2026, with any excess collected subject to refund if the commission reduces the final award. Organizations that haven't updated their Delaware energy cost assumptions for the second half of 2026 should do so before July.