Delaware Electric Rate Increase
Phase-In Plan
As part of the Delaware electric delivery rate Phase-In plan, customers who participated in the rate Phase-In plan are now being billed for the deferred amount from the May 2006 rate increase.
Delmarva Power is billing the amount of the phase-in charges in 17 equal monthly payments. This is the Monthly Recovery Charge and is being added to customers’ monthly bill beginning this month, January 2008.
The amount of the deferred balance will continue to be displayed in the Electric Phase-In Summary section of customers’ bills, which is listed as Phase-In Credits to Date. This section also contains a new line indicating your Monthly Recovery Charge and the number of months remaining for this charge. No interest was charged on the deferral amount. Also, the Monthly Recovery Charge does not include any interest.
Background:
In the spring of 2006, following a seven-year rate freeze, the Delaware Public Service Commission approved the rate Phase-In Plan as part of a rate increase. The plan gave customers a choice. They could opt out of the Phase-In Plan and begin paying the higher rates immediately. Or, were automatically enrolled in the rate Phase-In Plan if they took no action.
FAQs:
Q: Why does my bill have an additional charge?
A: As a part of the Delaware electric rate phase-in plan, your January 2008 bill reflects your obligation to begin paying back the amount deferred from the May 2006 rate increase. The Electric Phase-In Summary section has been included on your bill since the rate increase took effect.
Q: I don’t remember getting a credit for a rate increase, what does that mean?
A: In 2006, you were enrolled in the Delaware Electric Rate Phase-In Plan and that meant you did not pay the new full rate for electricity beginning in May 2006. At the time of the rate increase, you received credit on your bills from May 2006 through December 2007, which deferred the full rate increase from taking effect. Now, you must pay back the accumulated bill credits.
Q: How will the Phase-In charges be billed?
A: Delmarva Power is billing the phase-in charges in 17 equal monthly payments starting in January 2008. The monthly charge was calculated by dividing your Phase-In Credits to Date by 17 (the number of months the charges were deferred). On your bill, this charge is listed as the Monthly Recovery Charge.
Q: How will I know when I have completed my payments?
A: The Electric Phase-In Summary section of your bill contains detailed information on your payback obligation. The total amount is listed as Phase-In Credits to Date. Phase-In Charges to Date is the amount you’ve been billed so far. The number of months remaining indicates the number of bills left to complete your payment obligation for the Phase-In Charge.
Q: I’ve already arranged my bill to be at an amount that I can afford. With this increase, I can no longer afford what I arranged to pay each month. How can you help?
A: Customers currently on a Deferred Payment Arrangement, who may need to change the amount they pay monthly because of the increase associated with the deferred balance, are encouraged to contact the Call Center to discuss.
Q: What has the Company done to prepare customers for this increase on their January bills?
A: The Company has been communicating with its customers in the Rate Phase-In Plan directly since April 2006. This information included the accrual of credits and charges associated with deferring the higher electricity rates. In addition, the Company ran a December bill message reminding customers that the payback period would begin on Jan. 1, 2008 and an article in its December customer newsletter, Lines. A bill insert is included in the January 2008 bill for Delaware customers.
Links to Other Phase-In Customer Communications
