Kent County Today

Approximately 35% of Delmarva Power’s medium and large business customers may be paying higher rates than they should be, due to a policy that automatically increases a customer’s rate based on increased usage, but does not decrease that rate when usage declines.

That practice by Delmarva was uncovered during a recent investigation by the Delaware Division of the Public Advocate and Delaware Public Service Commission.

"About 5,200 commercial customers of Delmarva Power are paying more than they have to," said Drew Slater, Delaware’s Public Advocate. "They qualify for a lower rate classification which could save them hundreds of dollars a month based on the fact that they are paying a demand charge now and may not have to."

Slater said that the higher rate comes from an automatic switch that happens on Delmarva’s end when a customer exceeds a usage threshold for two consecutive months. A customer exceeding the threshold for back-to-back months is automatically switched to the higher rate for the next year.

Yet, the customer is not automatically moved back to the lower rate after those 12 months have elapsed, Slater said.

The solution for businesses that believe they are being charged an improper rate is to reach out to Delmarva, he said.

"It's very customer driven and the utility is not going to reach out to these customers and say you qualify for a lower rate," he said.

Customers who wish to find out whether their business is being charged the appropriate rate can call 1-800-375-7117 to confirm their current rate matches their usage.

Last year, a business customer in Sussex County lodged a complaint over Delmarva’s practices. It was the first complaint about the situation.

After the Public Service Commission ruled in favor of the complainant, additional complaints from affected businesses flooded the office.