New utility rate reductions for Delaware customers in 2019

Delaware Public Advocate Drew Slater has announced additional rate reductions for utility customers in Delaware, in addition to the reductions approved last year for Delmarva electric and gas ratepayers. Thank you to the hard work of Mr. Slater and thirty-eight of my fellow legislators and all the other citizens who fought to ensure that the recent federal corporate tax cuts would go to help ratepayers.

Please see the press release below for additional information on the most recent rate reduction.

John Kowalko
State Representative
25th District


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Public Service Commission Approves Additional Rate Reductions, Returning Tax Cut Savings to Customers

Thursday, January 31, 2019

DOVER – The Delaware Public Service Commission on Thursday approved an overall rate reduction for regulated utilities related to the overcollection of federal corporate taxes due to the Tax Cuts and Jobs Act of 2017.

Last year, the Public Service Commission approved an overall rate reduction for Delmarva Power electric and natural gas customers, which is already in effect.

Federal tax savings realized by additional Delaware regulated utilities will be passed on to residential customers in the following average dollar amounts per billing cycle:

Utility Company Average – Usage Billing Cycle Savings – Yearly Residential Customer Savings
Artesian Water Company – $2.35 per bill (4.58% savings) – $28.20 per year
Long Neck Water Company –$2.04 per bill – $24.48 per year
Suez Water – $1.71 per residential bill (4.5% savings) – $20.52 per year
Chesapeake Utilities – $1.52 per residential bill (1.57% savings) – $18.20 per year
Sussex Shores – $1.71 per residential bill – $6.84 quarterly
Tidewater Utilities – $8.17 per residential bill (4.21% savings) – $32.68 quarterly

*Customers of Broadkill Beach, Wilkerson Water Company, and Inland Bay and Artesian Wastewater Management, Inc. will not see a change as these utilities did not collect more than 21 percent federal tax prior to the enactment of the Tax Cuts and Jobs Act.

In January 2018, the Public Service Commission granted the Delaware Public Advocate’s petition to reduce the rates of all regulated utilities due to the reduction of the federal corporate tax rate from 35 percent to 21 percent. Thursday’s decision is the culmination of the PSC’s efforts to reduce the rates for customers of regulated utilities in Delaware. Overall, the rate reduction to Delaware’s regulated utilities totals more than $18 million.

“These are substantial savings for all regulated utility customer classes and especially the residential sector. I want to thank the Commission for approving our petition to reduce rates last year, the 38 members of the General Assembly for their support of that petition, led by Representative John Kowalko and Representative Kim Williams, and for today’s approval of the final rate reduction due to the Tax Cuts and Jobs Act of 2017. These reductions, coupled with the overall reduction from Delmarva Power’s electric and natural gas rate cases, have ensured all excess taxes flow back to customers in the form of reduced rates,” said Public Advocate Drew Slater.

“We appreciate the Commission’s leadership on this issue and we are ecstatic that these lower gas rates come just in time for the winter heating season,” said Raj Barua, PSC’s Executive Director.

The Delaware Public Service Commission (“PSC”) works to ensure safe, reliable and reasonably priced electric, natural gas, wastewater, and water services for Delaware customers. The PSC is made up of five part-time Commissioners, appointed by the Governor and confirmed by the Senate. The Commissioners are supported and assisted by a staff of full-time state employees.

The Division of the Public Advocate advocates for the lowest reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes of consumers.

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Posted in Announcements.