Delaware: Governor Backs Petition to Review Delmarva Power's Profit Model to Protect Ratepayers
Delaware Governor Matt Meyer announced in Dover on October 21 that the Division of the Public Advocate has filed a petition with the Delaware Public Service Commission (PSC) asking it to investigate utility return on equity (ROE) and explore reforms to how utility profits are determined.
According to the Governor's Office, ROE is the return a utility is authorized to earn on the equity portion of its capital investments, and it is a significant driver of utility rates, accounting for more than 10% of a typical customer's electric bill. Regulated utilities such as Delmarva Power currently receive a set return on equity of almost 10%. In June, Meyer called on the Public Advocate to file a petition asking the PSC to act within six months to reset the utility profit model.
The petition filed October 21 supports that effort, asking the PSC to examine current ROE and consider whether to adopt an alternate approach, including a competitive mechanism, for determining utility returns.
Published by GSM · USA (original Chinese edition)
Photo: 图：特拉华州立法大楼（Dover）。摄影：Adavyd，CC BY-SA 3.0（Wikimedia Commons）。Photo: Delaware Legislative Hall in Dover. Photo by Adavyd, CC BY-SA 3.0 (Wikimedia Commons).
