Delmarva Power rates rise
Effective Jan. 9, Delmarva Power’s electric supply rates increased as part of the utility’s annual “reasonable allowance for retail margin” filing, made Nov. 9, 2009, with the Delaware Public Service Commission.
The monthly increase for the typical residential customer using 1,000 kilowatt hours is $1.27, from $149.21 to $150.48, according to a company press release.
The increase was caused by several factors:
• An increase in the company's cash working capital requirement because PJM, the regional power grid operator for 13 states and the District of Columbia, changed from a monthly to a weekly settlement schedule. This resulted in fewer lag days for paying expenses and more upfront dollars;
• An increase in the written-off dollars for uncollected payments from disconnected customers;
• Administrative expenses associated with obtaining supply for Delmarva Power’s default “standard offer service” customers;
• The company’s allowable profit margin for default “standard offer service” customers.
Delaware Electric Co-op drops rates
The Delaware Electric Cooperative (DEC) Board of Directors approved an average annual rate decrease of 7.22 percent, effective Jan. 1.
Customers using 1,000 kilowatt hours per month will see a drop in their monthly bills of $9.04, from $121.95 to $112.91, according to a DEC press release.
“The cooperative is proud to announce this rate reduction especially during these tough economic times when our members could use the savings the most,” said Bill Wells, chairman of the DEC board of directors.
The cooperative highlighted the members’ involvement in the “Beat the Peak” program as a key contributor to lower rates. The program encourages use of appliances at times of lower demand, so DEC can buy more power at “off peak” prices. In addition, DEC through their power supplier, Old Dominion Electric Cooperative, has taken advantage of their asset-based portfolio, declining markets, experienced staff, and long-term strategies to secure lower cost power for their members.
“Because we are a not-for-profit, member-owned cooperative, when we save money we pass that savings on to our members,” said Bill Andrew, DEC president and chief executive officer.
