Delmarva Power Announces Rate Decreases for Maryland Customers
Tuesday, May 03, 2011
Summer residential electric bills to decrease about $25.00 a month
SALISBURY , Md. – Electricity supply rates will decrease for Delmarva Power Maryland customers this summer because of lower-priced contracts taking effect June 1, 2011. For the average residential customer, summer monthly bills will decrease by 15.7 percent, resulting in a monthly savings of about $25.00. Additionally, summer monthly bills for the company’s small business customers in Maryland will decrease about 16.7 percent, on average.
The rate decreases are a result of lower commodity fuel prices, which were obtained through a competitive bid process to supply electricity to Delmarva Power’s Standard Offer Service customers. Supply refers to the generation of electricity. Under deregulation, customers can choose to buy electricity from competing suppliers. Or, if they do not choose an alternate supplier, the utility buys power for them and passes along the cost. This is called Standard Offer Service.
As current contracts expire, Maryland’s bidding process requires Delmarva Power to solicit a series of two-year contracts twice a year with total contracts covering approximately 25 percent of the anticipated amount of electricity required to meet the needs of customers. The current contracts expire in May 2011.
“The declining wholesale market price for fuels used to produce electricity is certainly good news for our customers, particularly during these tough economic times,” said Gary R. Stockbridge, President, Delmarva Power Region. “We also encourage customers to conserve energy to help further reduce their monthly bills.”
Delmarva Power encourages its customers to visit its Web site, www.delmarva.com, for information on saving energy and money in their home or business and to get the latest supply information to help in choosing an alternate supplier that fits their needs. The company also offers its customers Budget Billing, a fixed payment plan based on the customer’s 12-month average bill, which they can enroll in either online or by contacting Delmarva Power Customer Care at 800-375-7117.
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to nearly 498,000 electric delivery customers in Delaware and Maryland and over 123,000 natural gas delivery customers in northern Delaware .