People, Not Profits — Learn More About DEC's Business Model

   As a not-for-profit member-owned utility, Delaware Electric Cooperative is focused on people, not on profits. Our business model makes us different from the other utilities serving the First State, and is one of the many reasons why we offer the lowest electricity rates in Delaware. With so much recent media attention focused on the cost of power at neighboring utilities, we thought we’d explain the components of your monthly bill and how we are able to provide affordable electric rates.
   Let’s start with an overview of billing components. When you read your monthly bill, you see several charges. Supply charges and the Power Cost Adjustment (PCA) represent the Co-op’s cost to purchase or produce power for members. Delivery charges represent the Co-op’s cost to distribute power to member homes and businesses. Included in our delivery fees is the service charge, which covers the basic cost of providing service to each member, including the cost of electrical infrastructure, technology costs and labor that ensures reliable power is delivered throughout our service territory. We determine supply and delivery charges through frequent cost of service studies, which help our team understand the costs to provide service to members, and the most equitable way to spread those costs among those we power. 
   DEC has partial ownership of a diverse portfolio of power plants through a partnership with 10 other not-for-profit electric cooperatives. We also own or purchase solar and landfill gas energy from Delaware-based power-generating facilities. Owning generation means our Co-op doesn’t need to purchase the majority of its energy from the power markets, where prices can be volatile. Local solar and landfill gas generation also means DEC is able to avoid some of the costs associated with transmitting power from other areas to Delmarva. While owned generation helps keep Co-op power affordable, DEC has also spent more than a decade making strategic investments in system improvements that have resulted in record reliability and a reduction in the amount of electricity that’s lost in transmission from the power plant to your home. In addition to avoided energy costs and strengthening our local grid, the investments have also prevented the Co-op from having to spend as much money on emergency repairs and maintenance. Programs like Beat the Peak, which reduce energy use during times when it is expensive for the Co-op to generate or purchase power, have also helped keep rates affordable. Our Beat the Peak programs have saved our members tens of millions of dollars since 2008 and will be more important than ever this summer as power costs during the hottest days of summer are expected to rise. 
   The most important reason our rates are lower than our neighboring utilities is that we operate under a not-for-profit business model. While we need to post reasonable margins to ensure we can cover expenses, any profits we make are marginal compared to for-profit companies and are returned to members in the form of capital credits. We can’t guarantee that our rates will always be the lowest in Delaware – energy costs are expected to rise this summer and over the next several years. What we can promise you is that we will continue to make decisions that are in your best interest and will do everything in our power to provide you with cost-effective and reliable electricity. Thank you for letting us power your life!