First Rate Increase in 10 Years for Tidewater Customers

Public Service Commission approves settlement resulting in a 13% increase

On July 2, 2025, the Public Service Commission (PSC) approved the settlement of Tidewater Utilities, Inc.’s (“Tidewater”) water rate case. As a result of the settlement, Tidewater customers will see a rate increase of 13% and an increase in fixed monthly charges of 5%. For an average residential customer this will mean an increase of roughly $8 per month.

Tidewater filed its rate case on August 30, 2024, initially seeking an increase in its revenue of $10.3 million (or a 25.66% increase). Tidewater’s rate case was its first request to increase base water rates in ten years.

Through the settlement, the amount of the overall rate increase was reduced from Tidewater’s initial request of $10.3 million to a final settlement of $5.5 million, lowering by millions the impact of the rate increase to Tidewater customers. The settlement also specifies that monthly fixed customer charges for typical residential 5/8” and ¾” meter customers will only increase by 5% (from $17.11/month to $18.00/month), versus the company’s original request for a 13% increase. (Customers within the Town of Ocean View will continue to pay their current fixed customer charge, as set forth in Commission Order No. 10656.)

In addition, the settlement requires Tidewater to refund to customers $1.1 million to true up excess deferred income tax held by Tidewater. This credit will be paid to customers over six months, with interest, partially offsetting the impact of the rate increase.

“Any utility rate increase means tighter budgets for Delaware families,” said Jameson Tweedie, Delaware Public Advocate. “But this settlement reduces the increase by almost half, collectively saving Tidewater customers millions of dollars per year versus Tidewater’s application, requires Tidewater to refund to customers $1.1 million, and is the first Tidewater rate increase in a decade. As with any case, the staff of the Division of the Public Advocate worked hard to limit the impact to customers.”

This settlement is the result of extensive negotiations between the Division of the Public Advocate, staff for the PSC, and Tidewater and reflects a mutual balancing of various issues and positions.

Tidewater’s new rates will be implemented on or after July 3, 2025, but the change customers see on their bills will be reduced because Tidewater implemented part of the increase through interim rates on October 30, 2024.