DPA Statement on High Winter Energy Bills
DPA Statement on Winter 2025-2026 Increasing Power Bills
The extended periods of unusually cold temperature in December 2025 and January 2026 have caused utility bills for many customers to increase dramatically and further undermine energy affordability for many Delaware families. The fundamental mission of the Delaware Division of the Public Advocate (DPA) is to advocate the lowest reasonable rates for consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes of consumers. We feel acutely the burden that high utility costs places on customers. DPA will vigorously advocate against future rate increases for regulated Delaware utilities and is continually looking for policy solutions to reduce the burden utility rates place on Delaware families. DPA can in some circumstances assist customers with complaints against regulated utilities, but we are unable to address bill increases that have already been approved by the Public Service Commission. If you do have a complaint against your utility provider, first contact that provider directly for assistance. If you are dissatisfied with the utility response or believe the utility has violated its tariff, Commission rules or state law, you may file an informal complaint with our office here: File a Complaint – Division of the Public Advocate (DPA) – State of Delaware and we will work with you and communicate with the utility to resolve the issue, where possible.
Ratepayer Assistance
If you are having trouble paying your bill, there are utility assistance programs that may help. For customers facing high bills, Delmarva Power and the State of Delaware have announced a customer relief fund (Governor Meyer Announces $6.5 Million Credit Program For Delawareans Struggling With Utility Bills – State of Delaware News), implemented through the Sustainable Energy Utility, to provide customer relief up to $500 and energy efficiency programs for many customers. Relief fund information can be found here: Delmarva Power Customer Relief Fund – Energize Delaware.
Additional utility assistance programs may also be available. Start by visiting our website at Utility Bill Assistance – Division of the Public Advocate (DPA) – State of Delaware You can also contact Delmarva Power directly for help with payment plans, budget billing and to help answer questions about your specific bill.
Understanding Your Bill
To better understand why Delmarva Power Bills are increasing, the DPA has a put together resources to explain the components of a Delmarva bill (Delaware PSC and DPA Help Customers Understand Their Delmarva Electric Bills – State of Delaware News) and a webpage explaining some of the drivers of increasing power bills (Why is my DPL Bill so High? – Division of the Public Advocate (DPA) – State of Delaware). On your electric bill, the biggest components are:
- Delivery (also referred to as distribution, or the charge for bringing power to your home), which is priced per-kilowatt hour and increases with higher usage;
- Supply (the charge for the power you use), which is priced per-kilowatt hour and increases with higher usage; and
- Transmission (which is included as a subpart of supply and is the charge for transmitting power over long distances between power generators and the distribution system), which is priced per-kilowatt and is based on your highest energy demand during the year multiplied by an annually fixed transmission rate.
On your natural gas bill, the biggest components are:
- Delivery (also referred to as distribution, or the charge for bringing natural gas to your home), which is priced per CCF (one hundred cubic feet of gas) and increases with higher usage; and
- Supply (also referred to as the gas cost rate or the gas system supply rate, the charge for the natural gas you use), which is also priced per CCF and increases with higher usage (more information on increases in these costs is available here: Delmarva Power, Chesapeake Utilities file Gas Rate Hikes, Raising Bills for Customers – State of Delaware News.
Electric Bill
Electric Delivery Charges
A particular area of recent confusion relates to the “Delivery” portion of bills, which consist of a fixed “Customer Charge” that remains constant each month, and a number of other charges that are charged on a per-kilowatt hour rate, meaning these portions of the delivery charge – which can be substantial – fluctuate with usage. Thus, both the supply portion and the delivery portion of a customer’s bill will increase with increased energy use. The more energy you use (particularly in summer and winter, when heating and cooling needs are greatest) the higher your delivery charges will be.
The specific components of a Delmarva Electric bill include:
- Customer Charge: The customer charge is a fixed amount, currently $13.50 per month for electric. This charge covers the utility’s cost for billing, metering, and other administrative costs. This charge is constant every month and does not change with usage.
- Distribution Charge: This is a per kilowatt hour charge designed to allow the utility to recover its investments in the poles, wires, transformers and other equipment necessary, along with other costs, to deliver energy to your home. This rate is set by rate proceedings before the Public Service Commission (as noted below, Delmarva Electric is currently seeking to increase these rates) and typically these represent the largest component of the delivery portion a customer’s bill.
- Although smaller portions of your bill, there are also legislatively mandated fees included in the total “Delivery” charge you see on your Delmarva electric bill:
- Low Income Fund: This is a legislatively mandated fixed per kilowatt hour fee, and thus will increase with higher energy use. Monies collected are used to assist low-income customers with weatherization. More information is available on the Weatherization Assistance Program website.
- Green Energy Fund: This is a legislatively mandated fixed per kilowatt hour fee, and thus will increase with higher energy use. Monies are used by the Department of Natural Resources and Environmental Control (DNREC) to incentivize solar adoption through programs, including grants for customers in Delmarva’s service territory. More information about the Green Energy Fund and programs to support residential solar, including, Low- to Moderate-Income Solar Program, are available on DNREC’s website Green Energy Program – DNREC
- Renewable Compliance Surcharge – Wind & Solar: To meet Delaware’s renewable portfolio standard, which provides for an increasing portion of Delaware’s electric power to come from solar and other renewable sources, Delmarva Power must purchase renewable energy credits (RECs) and solar renewable energy credits (SRECs) to meet legislatively established percentages of renewable energy (a cost protection mechanism allows the payment of an alternative compliance payment if REC or SREC costs rise above statutorily permitted levels). This rate is adjusted annually based on Delmarva’s actual costs to procure RECs and SRECs.
- Renewable Compliance Surcharge – Qualified Fuel Cells: This is a surcharge paid by all Delmarva customers and is mandated by State law as a passthrough of costs Delmarva is required to purchase for RECs and energy produced by qualified fuel cells, offset by the energy production from the fuel cells. This rate is adjusted annually.
- Distribution System Improvement Charge (DSIC): This is a surcharge that allows Delmarva Power to recover infrastructure investments between base rate increase requests. It is a percentage of total distribution costs (excluding the customer charge and other fees) and can be changed annually on January 1 and June 1. The total percentage allowed is capped at 7.5%, and no semi-annual change can exceed 5%. The percentage rate is applied only to your delivery charges, excluding the customer charge and other delivery surcharges. Both electric and natural gas bill may be subject to a DSIC surcharge.
- Energy Efficiency Surcharge: This is a per-kilowatt hour charge through which Delmarva funds energy efficiency programs. Delmarva is required by State law to administer energy efficiency programs to help its customers reduce the amount of energy they use. Every three years, Delmarva creates a portfolio of efficiency programs, which are reviewed by the Energy Efficiency Advisory Council, and then presented to the Public Service Commission for approval, sometimes with modifications. A per kilowatt hour rate is calculated, allowing Delmarva to recover the costs of the portfolio. Visit Delmarva Power’s Ways to Save website to learn about these programs.
Electric Supply Charges
The “Supply” portion of your Delmarva electric bill recovers the costs Delmarva incurs to purchase energy for its Standard Offer Service (SOS) customers; that is, customers who have not elected to purchase energy from a third-party supplier. Supply charges include two components:
- Transmission Capacity Charge: This represents the allocation of transmission costs to deliver the power to Delmarva’s distribution system used by a customer. Unlike other charges, this is calculated based on your peak kilowatt energy use at one time during the year.
- Standard Offer Service Charge: For customers who have elected Delmarva’s standard offer service for electricity, the default supplier of electricity for customers in Delmarva territory, this is the per-kilowatt hour cost for electricity. The rate is based on competitive bids under a process overseen by the Public Service Commission. SOS rates are changes annually on June 1.
- If you elected to enroll with a Third Party Supplier (TPS), we strongly encourage you to review and fully understand your contract and its rates/charges. Some TPSs will offer a low introductory rate, then change it to a higher fixed or variable rate after the conclusion of the introductory period. Importantly, TPS rates are not regulated by the Public Service Commission and your service can be terminated by Delmarva Power for failure to pay TPS charges.
Delmarva Electric Requested Rate Increase
On December 9, 2025, Delmarva Power filed a request for an electric distribution rate increase with the Public Service Commission (PSC Docket No 25-01555). Information about this rate case is available on the PSC’s electronic docket platform, Delafile. The DPA has already hired experts in utility regulation and ratemaking to assist in the review of this case and will vigorously represent Delmarva’s residential and small commercial customers in this proceeding. Delmarva customers can also voice their opinion through public comments in the docket. Visit State of Delaware – Public Service Commission – Delafile to enter your concerns, being sure to reference PSC Docket No. 25-1555. Also look for notifications for Public Comment Sessions in this matter where you are able to voice your concerns to a Hearing Examiner and who will place those comments into the record.
To stay up to date on utility filings, Delafile allows the public to subscribe to receive alerts about specific utility filings, or filings in a particular docket. Registration is not necessary and is limited to parties in a docket.
Natural Gas Bill
Natural Gas Delivery Charges
A particular area of recent confusion relates to the “Delivery” portion of bills, which consist of a fixed “Customer Charge” that remains constant each month, and a number of other charges that are charged on a volumetric basis (per CCF), meaning these portions of the delivery charge – which can be substantial – fluctuate with usage. Thus, both the supply portion and the delivery portion of a customer’s bill will increase with increased energy use. The more energy you use (particularly in winter, when heating needs are greatest) the higher your delivery charges will be.
The specific components of a Delmarva Natural Gas bill include:
- Customer Charge: The customer charge is a fixed amount, currently $17.00 per month for natural gas customers. This charge covers the utility’s cost for billing, metering, and other administrative costs. This charge is constant every month and does not change with usage.
- Distribution Charge: This is a per CCF charge designed to allow the utility to recover its investments in the infrastructure and other costs, to deliver energy to your home. This rate is set by rate proceedings before the Public Service Commission (the Public Service Commission approved an increase in Delmarva Power natural gas rates, through a settlement, in December 2025) and typically these represent the largest component of the delivery portion a customer’s bill.
- Distribution System Improvement Charge (DSIC): This is a surcharge that allows Delmarva Power to recover infrastructure investments between base rate increase requests. It is a percentage of total distribution costs (excluding the customer charge and other fees) and can be changed annually on January 1 and June 1. The total percentage allowed is capped at 7.5%, and no semi-annual change can exceed 5%. The percentage rate is applied only to your delivery charges, excluding the customer charge and other delivery surcharges. Both electric and natural gas bill may be subject to a DSIC surcharge.
Natural Gas Supply Charges
- Gas Cost Charge: For Delmarva’s natural gas customers, the commodity gas of natural gas is recovered through the Gas Cost Rate (GCR). The GCR is calculated on a per CCF basis (i.e. a volumetric basis) and thus fluctuates with a customer’s usage of natural gas. During periods of increased usage, particularly during winter heating months, this amount can increase substantially. This per CCF rate is based on Delmarva’s projected gas costs for the upcoming year and is adjusted annually on November 1 after a filing by Delmarva. Any over- or under-recovery of gas costs are trued up in the following year by changing the Gas Cost Rate for the upcoming year. In 2025, the Gas Cost Rate increased by approximately 40%, as explained further here Delmarva Power, Chesapeake Utilities file Gas Rate Hikes, Raising Bills for Customers – State of Delaware News.
We understand this is a great deal of information to understand. If we can answer any questions, or be of any other assistance.
