How Your Co-op Works to Keep Rates Affordable

For generations, Delaware Electric Cooperative has provided reliable and affordable power to the communities we serve — and as we celebrate our 90th birthday, that commitment remains unchanged. Over the past year, dozens of local news stories have been published focused on the skyrocketing cost for electricity being passed on to consumers from other utilities. Because of this renewed interest in energy, DEC has been inundated with questions from members and state leaders wondering why our electric rates are lower than those offered by other companies. 
 

First, our business model is unique in Delaware. We’re the only member-owned, not-for-profit utility in the state. We’re focused on people, not profits, and our goal is to provide the most affordable power possible. Additionally, any profits or margins we make are returned to members in the form of billing credits. According to DEC President and CEO Rob Book, “The cooperative business model puts those we power first. We don’t serve customers, we serve members who own our Co-op and are entitled to our profits.”
  

In addition, DEC’s strong partnerships with other nonprofits pay dividends for members. 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. DEC and 10 neighboring electric cooperatives own power plants through a generation and transmission cooperative based in Virginia. By pooling resources, the cooperatives are able to produce much of the power needed to meet member demand and purchase the rest from the regional energy market. 
  

Our Co-op is also 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. 
  

Finally, 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 cooperatives nationwide.
  

Because of this proactive approach to managing energy costs, DEC members save more than $500 per year when compared to those served by other utilities. That’s more money in your pocket and more money for small businesses and farmers to invest back into their operations. While we cannot control every driver behind member electric bills, we remain committed to carefully managing the costs we can control — all while maintaining the high level of reliability and affordability our members expect.