Board Approves PCA Change

Delaware Electric Cooperative’s Board of Directors approved an adjustment to the Power Cost Adjustment (PCA) during a public hearing on April 2. The PCA is a component of members’ electric bills that reflects the cost DEC pays to purchase or produce electricity.

Much of the electricity used across Delmarva is generated by natural gas–fueled power plants. The cost of natural gas fluctuated over the past year and spiked to 25-year highs during the record cold our area experienced in January. This increased DEC’s cost to purchase and produce the energy delivered to your homes. To account for these higher costs, the Board approved increasing the PCA from -0.0015 to 0.012161 cents per kilowatt-hour (kWh), effective May 1. The average member using 1,000 kWh per month will see an increase of approximately $13 on their monthly bill.

Even with the PCA adjustment, DEC members will continue to be provided with some of the lowest electric rates in the region — saving more than $500 per year compared to neighboring utilities.

We understand that many families are facing financial challenges, and any increase in energy costs is unwelcome. While we cannot control the price of natural gas, we remain committed to transparency and to carefully managing the costs we can control — all while maintaining the high level of reliability our members expect.

Here are some of the ways we are working to control rising energy costs:

• Our engineers are using advanced technology to identify aging power lines and equipment for targeted replacement. This proactive approach improves grid efficiency, reduces long-term maintenance costs and saves members money.
• DEC partners with other not-for-profit organizations to purchase utility poles, secure long-term financing and generate power — often at more affordable rates than for-profit providers.
• We actively negotiate competitive contracts for the materials needed to maintain our electrical system, ensuring quality while preventing members from overpaying.
• DEC maintains strict financial controls and an A+ stable credit rating, which provides access to low-cost financing for reliability projects.
• Our Beat the Peak program helps manage power costs by encouraging members to reduce electricity use when energy is most expensive to produce. Since 2008, the program has saved members more than $45 million and is now used by more than 100 not-for-profit utilities nationwide.
• DEC leaders are also working with Delaware lawmakers to protect members from the potential cost impacts of large-load growth, including data centers. Proposed changes would streamline permitting for new power generation and give the Co-op the authority to decline service to projects that could negatively affect members.

For generations, our goal has been to provide reliable and affordable power to the communities we serve — and that commitment remains unchanged. DEC also offers bill assistance programs and energy-saving resources to help members manage costs. Members can learn more about energy saving resources HERE.

As a not-for-profit electric cooperative, DEC only passes along increased costs to members when necessary. Our Board of Directors and employees will continue to do everything possible to keep electricity reliable and affordable.

Members with questions about the proposed rate change are encouraged to email [email protected].