Winter 2017 Rate Changes

Delaware Electric Cooperative's Board of Directors has approved a rate decrease, which will lower the power cost adjustment, raise the delivery charge and roll the energy efficiency charge into the distribution charge. The average residential member using 1,000 kWh per month will see a five-percent decrease in their monthly electric bill. The rate changes will take effect on March 1st. The Board of Directors of the Cooperative voted upon the proposed rate changes at a member meeting held on:

Date:    February 15, 2017

Time:   6:00 P.M.

Place:   Delaware Electric Cooperative Headquarters Building at 14198 Sussex Hwy., Greenwood, DE 19950

Here’s what you need to know about the rate changes:

Question: What rate classes will be affected by the changes?

Answer: The changes will impact all our rate classes. Every Cooperative member will see their rate decrease.

Question: What Does This Mean for My Electric Bill?

Answer: A member on our residential rate, who uses an average of 1,000 kWh per month, will see an $6 dollar per-month decrease in their electric bill. The average Co-op member will save about $72 per year.

Question: Who Approves Rate Changes?

Answer: The Cooperative is governed by a Board of Directors, who are elected by Cooperative members. The Board is responsible for considering any rate changes and then voting upon the proposals. 

Question: Why is the Power Cost Adjustment going down?

Answer: The cost of power is a “pass through” for the cooperative, we make no margin or profits on the sale of energy. Recently, Old Dominion Electric Cooperate reduced the wholesale rates supplied to its member owners, of which DEC is an owner, and we in turn are passing those rate reductions along to all members. 

Question: Why is there an increase in the delivery portion of the bill?

Answer: The costs for building and maintaining the electrical infrastructure continues to rise. We spend approximately $65,000,000 per year to run the enterprise and to build new lines, upgrade older lines and install smart devices to maintain a high degree of reliability. The increase in the delivery charge will off-set some of our need to borrow funds for this effort.

Question: Will rates continue to go down?

Answer: That is very difficult to predict. However, our outlook for rates in 2017 is stable – meaning that as we see the energy markets today we are not anticipating any rate changes.

Question: I don’t use 1,000 each month. How do I calculate my savings?

Answer: The net change to all rates is a reduction of $0.006 per kWh. Take a look at your bill and find the kWh usage either by the month or year and multiply that usage times $0.006 per kWh to determine the monthly/annual savings.

Example:

   

kWh Usage

 

Savings per kWh

Monthly Savings

   

 

2015

Dec

899

x

$0.006

$5.39

2016

Jan

985

x

$0.006

$5.91

 

Feb

1014

x

$0.006

$6.08

 

Mar

966

x

$0.006

$5.80

 

Apr

973

x

$0.006

$5.84

 

May

827

x

$0.006

$4.96

 

Jun

1210

x

$0.006

$7.26

 

Jul

1308

x

$0.006

$7.85

 

Aug

1849

x

$0.006

$11.09

 

Sep

1668

x

$0.006

$10.01

 

Oct

914

x

$0.006

$5.48

 

Nov

805

x

$0.006

$4.83

 

Dec

977

x

$0.006

$5.86

         

$86.37

Question: How do our rates compare to other utilities?

Answer: Our rates are the lowest in the state of Delaware, although again, that may not always be the case. Co-op members save roughly $300 a year or $25 a month on energy costs when compared to the average electric rate paid by Delawareans served by other utilities.

Question: Why is the Energy Efficiency Fund being eliminated?

Answer: The Energy Efficiency Fund is proposed to be combined with the Delivery Charge – no impact to your rate. In addition to spending the revenue collected from the Energy Efficiency Fund we also spend some monies collected from the Delivery Charge on efficiency and thus there is no real reason to have a separate fund. We have and will continue to fund energy efficiency, conservation and demand side management projects across our service area.

Question: What is the impact of combining the transmission, ancillary and supply charges?

AnswerThere is no impact to rates whatsoever. These are all elements of the supply charges are being combined into one charge to make the bill a little easier to read and understand.

The rate changes, if approved, will take effect on March 1st, 2017.

For more detailed information on the changes, please click HERE.

Click HERE to read the proposed tariff.