Delmarva disputes OPC's push for expedited rate case filing amid resource concerns

January 18, 2025 | Public Service Commission, Independent Agencies, Organizations, Executive, Maryland


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Delmarva disputes OPC's push for expedited rate case filing amid resource concerns
The Public Service Commission of Maryland convened on January 15, 2025, to discuss significant matters regarding utility rate cases, particularly focusing on the ongoing case involving Delmarva Power. A key point of contention arose over the timing and nature of rate filings, with differing opinions from the Office of People’s Counsel (OPC) and other stakeholders.

During the meeting, representatives highlighted a request from Delmarva Power to delay the filing of a rate case, citing resource constraints. This request echoes a previous case involving Pepco, where similar delays were granted to avoid undue burdens on the parties involved. The OPC, however, opposed the delay, arguing that the commission should not waive the requirement for a historic test year filing, which is due by June 4, 2025. They contend that Delmarva has sufficient time to prepare this filing and that the commission should not allow for alternative forms of rate-making, such as a New York-style rate plan (NYP).

Delmarva Power representatives countered that the OPC's insistence on a historic test year eliminates the flexibility provided by law to file an NYP. They referenced a previous commission order that affirmed the utility's right to choose its filing method, as long as it includes a historic test year. The discussion also touched on the validity of current rates, with Delmarva asserting that their existing rates have been deemed just and reasonable by the commission and should remain in effect unless compelling evidence suggests otherwise.

The meeting underscored the ongoing debate over regulatory flexibility and the balance between ensuring fair utility rates and accommodating the operational realities of utility companies. As the commission deliberates on these issues, the implications for both consumers and utility providers remain significant, with potential changes to rate structures on the horizon. The next steps will involve further examination of the arguments presented and a decision on the appropriate course of action regarding the rate case filings.

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