Delaware Electric Cooperative’s Board of Directors is considering a rate decrease for all 93,000 members.
Co-op CEO Bill Andrew has requested the rate change and, if approved by the board, rates for those served by Delaware Electric Cooperative would drop by about five percent.
The rate decrease would save the average family using 1,000 kilowatt-hours of electricity $6 per month, or $72 per year.
While the co-op’s rates have increased over the last decade, they remain the lowest in the state of Delaware. Co-op members save $300 per year in energy costs, compared to the average rates charged by Delaware’s other electric utilities, a release stated.
Delaware Electric serves rural areas that were not part of the territories of Delmarva Power or municipal utilities in Dover, Lewes and other towns and cities.
According to CEO Bill Andrew, “Electric cooperatives were founded to provide safe and reliable energy to members at the lowest possible cost. We are excited to be able to lower rates for everyone at a time when the cost of everything else seems to be going up. Wholesale power costs are falling and at DEC, we work hard to keep other costs under control, maintain an efficient workforce and promote programs like Beat the Peak.”
Beat the Peak is a voluntary program where members conserve energy during times when the price of energy is high. Since its inception in 2008, the program has saved co-op members $24 million. Beat the Peak is being used by nearly 100 not-for-profit utilities across the country.
The rate decrease would result from a series of changes to how members’ bills are calculated. The Power Cost Adjustment would be lowered and the delivery charge would be increased, resulting in a net five percent decrease for all members in all rate classes.
The co-op’s board will hold a public hearing on the proposed changes on Feb. 15, at 6 p.m. at Delaware Electric Cooperative’s headquarters, 14198 Sussex Highway, Greenwood. After hearing comments from members, the board will vote, during the meeting, on the proposal.
While the co-op is able to lower rates at present, there is no guarantee rates will not have to be changed in the future. “The energy markets are constantly fluctuating and changes in the weather, natural gas supplies and government regulations could all result in rate changes down the road,” said Andrew.
Jeremy Tucker, director of marketing and communications, said the Delaware Electric is one of the nation’s fastest growing electric cooperatives, adding 2,000 members in the past year. That growth did not contribute to the decision to seek the rate derease, he said.
Delaware Electric is also a member of wholesale electric co-op supplier Old Dominion Electric Cooperative, which is building a natural gas-fired plant near Conowingo in northwest Cecil County, MD. Old Dominion is building the plant to ensure greater price stability for member cooperatives.
Delaware Electric serves portions of Kent and Sussex counties.e at www.delaware.coop.
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