Maryland Commission Reviews Delmarva Power's Annual Filing and Tax Issues

In a recent meeting held by the Public Service Commission of Maryland, significant discussions centered around the annual informational filings from Baltimore Gas and Electric Company and Delmarva Power. These filings are crucial as they directly impact ratepayers and the financial operations of these utility companies.

The meeting addressed item number 8, which pertains to Baltimore Gas and Electric's 2024 annual informational filing. Ruthie Hermann, representing the staff, sought permission to discuss this alongside item 12, which concerns Delmarva Power's case. This collaborative approach highlights the interconnected nature of utility regulation and oversight.

Delmarva Power's filing, submitted on April 1, 2025, included details on its distribution rate base and operating income for the previous year. The staff from the accounting investigation division reviewed the filing and determined that Delmarva should provide a credit to its ratepayers amounting to $855,000, which includes carrying costs. The staff urged the commission to approve this credit promptly, ideally by May 30, 2025. Additionally, Delmarva proposed changes to its MYP adjustment rider, which is set to take effect on July 1, 2025. The commission's timely approval of these changes is essential for maintaining transparency and fairness in utility billing.

Another critical topic discussed was the pending income tax issue involving Delmarva Power, which is currently under review by the Internal Revenue Service. Delmarva has expressed its agreement with the staff's recommendations regarding potential refunds if the IRS determines that certain normalization procedures were not required. However, the staff advised the commission to postpone any ruling on interest related to this matter until the IRS provides its decision.

For Baltimore Gas and Electric, the meeting revealed that there were no over or under recovery issues with their rate year 1 filing. The only outstanding matter is the income tax issue, which is also pending federal review. The staff recommended that the commission refrain from making any rulings on interest until further clarity is provided by the IRS.

In summary, the discussions during this meeting underscore the importance of regulatory oversight in the utility sector, particularly in ensuring that ratepayers are treated fairly and that companies comply with federal regulations. The commission's upcoming decisions will be pivotal in shaping the financial landscape for both Baltimore Gas and Electric and Delmarva Power, as well as their customers.