Delmarva Power rate hike tops $75 million as regional energy costs spike

Delaware consumers face a pending rate increase from Delmarva Power that could add roughly $75.8 million to annual base-rate revenue. The utility initially requested a $67.8 million increase in December 2025, but officials later updated the figure to $75.8 million. The Delaware Public Service Commission approved an interim increase of about $34.3 million in July while the full request remains under review. Delmarva has appealed the interim decision, arguing the commission improperly accounted for an existing infrastructure charge.

The financial pressure on household budgets stems from rising costs across all three components of electric bills. According to a report from the Delaware Division of the Public Advocate released in April 2026, residential distribution rates have more than doubled since 2006. Transmission rates climbed 93.5% between 2020 and 2025, and residential summer electricity supply rates jumped 114.1% between 2021 and 2026. Tweedie noted that capacity-market prices have increased approximately 1,000% over the last three years, a trend that reflects growing demand for reliable power.

Jameson Tweedie, the state’s Public Advocate, discussed these trends on Monday’s A Better Discussion podcast with Jane Brady. Tweedie stated that the regional power system is struggling to keep new generation in line with growing demand, particularly from large data centers. While Delaware has substantial installed generating capacity, the state still relies heavily on electricity produced elsewhere. Data from the U.S. Energy Information Administration shows Delaware generated approximately 4.8 million megawatt-hours of electricity in 2024, while retail customers purchased approximately 11.4 million megawatt-hours.

A PJM Interconnection study identified nine proposed generation projects in Delaware, totaling nearly 1.8 gigawatts of capacity. The list includes three natural-gas facilities, four solar projects, and two energy-storage projects. However, an independent review noted that a 1.5-gigawatt natural-gas project in Sussex County was withdrawn, leaving uncertainty about how much of the proposed generation will actually move forward. Projects must pass technical and financial reviews before construction can begin.

Legislators recently passed measures to address the cost burden of large data centers. Gov. Matt Meyer signed House Bill 233 and House Bill 445 in August. House Bill 233 creates a separate utility rate classification for major electricity users, while House Bill 445 requires qualifying large energy facilities to secure enough new generation to meet their power needs. The legislation aims to prevent additional infrastructure costs from being passed to residential and small-business customers.

Tweedie’s office is reviewing the Delmarva Power request and plans to challenge expenses it deems unjust or unreasonable. The Public Advocate represents residential and small-business customers before the Public Service Commission and in regional and federal proceedings. Customers with billing disputes or concerns about disconnections can contact the office at 302-241-2555 or visit publicadvocate.delaware.gov for more information.