Delaware Launches Probe Into Utility Profit Limits

Regulators unanimously agreed to solicit proposals for an investigation as Delmarva Power seeks a $67.8 million revenue increase.

Updated on Nov. 6, 2026 in Utilities

Delaware Launches Probe Into Utility Profit Limits

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Should Delaware lower the profit limit that utilities like Delmarva Power can earn?

The Delaware Public Service Commission voted unanimously on Wednesday to solicit proposals for an investigation into the state's limits on utility profits. The inquiry follows a request from Public Advocate Jameson Tweedie and a call from Gov. Matt Meyer.

Why it matters

Regulated utilities earn profit when regulators approve rate increases that recover infrastructure costs plus a return, so limits on that return directly shape what Delaware households pay. The probe comes as Delmarva Power asks regulators for a rate increase that would be the largest in the state's history if approved.

Delmarva Power is seeking a $67.8 million revenue increase, and the state's typical profit limit sits at about 10%, while the company earns roughly 10 cents on each dollar invested in infrastructure upgrades. Whether the probe will alter that request has not been determined.

The players

Delaware Public Service Commission

The state body that regulates utilities in Delaware, setting the rates companies may charge customers and the profits they may earn.

Delmarva Power

A regulated electric utility serving Delaware customers, whose pending request for a rate increase has drawn attention to the state's profit limits.

Jameson Tweedie

Delaware's Public Advocate, the official who represents consumer interests in utility proceedings and who requested the profit-limit investigation.

Matt Meyer

The Governor of Delaware, who had previously called for an inquiry into utility profits.

The details

Commissioners agreed that their own staff would be too busy to conduct the investigation, prompting the solicitation of outside proposals. Tweedie said new research suggests utilities across the country earn more profit than necessary, and he wants the study completed by the end of the June legislative session next year.

Last month: Public Advocate Jameson Tweedie requested the profit-limit inquiry.
Wednesday, November 4, 2026: The Public Service Commission voted unanimously to solicit investigation proposals.
June of next year: Target completion date for the profit investigation at the end of the legislative session.

Market Landscape

Tweedie's justification rests on research indicating that utilities across the country earn more profit than necessary, which positions Delaware's inquiry as a state-level test of that national finding. The outcome could shape how the commission weighs profit returns against infrastructure spending in future rate cases.

If the commission approves Delmarva Power's request, the average homeowner's utility bill could rise by about 4%. The profit-limit investigation may eventually affect how much of that increase households are asked to cover.

The takeaway

Ratepayers should watch both the Delmarva Power rate case and the forthcoming profit investigation, since the two could together determine how much of utility spending reaches household bills. The study's findings will show whether Delaware's profit limits are set appropriately.

What happens next

Tweedie wants the investigation completed by the end of the June legislative session next year, and the Public Service Commission will select a firm to conduct the study.