Delmarva Power to Offer Pricing Incentive Program
Tuesday, December 20, 2011
Customers to Get Bill Credits for Reducing Energy Use at Critical Times
NEWARK, Del. – The Delaware Public Service Commission (PSC) today approved a plan to reward Delmarva Power’s Delaware customers who voluntarily reduce electricity use on hot summer days when both the demand and market price of power are especially high.
Company officials said the program initially would be offered next summer to approximately 7,000 residential customers who have Delmarva Power as their electricity supplier, also known as Standard Offer Service (SOS) customers. The program would then be phased-in for the remaining SOS customers, ranging from residential, small and medium-sized businesses, beginning in 2013 and running through 2014. Delmarva Power is the default energy supplier for approximately 300,000 Delaware homes and businesses.
“We’re going to help our customers understand that when they reduce electricity use on the hottest summer days, it will help reduce what we all pay for energy,” said Gary Stockbridge, President, Delmarva Power Region. “The more we encourage reduced energy use during those few peak hours of the year, the more influence we’ll have over keeping down the market price for power by relying less on the region’s most expensive electricity.”
Under the pricing incentive program, customers could earn money back on their monthly electricity bill when they reduce their usage during critical times, such as on a hot summer day when energy use is reaching its peak. Customers will be notified the day before an expected critical peak event, which would likely fall between the hours of noon and 8 p.m. They would then view their typical hourly electricity use and aim to reduce it further to get the maximum bill credit.
“With our smart meter technology now in place, we can begin to roll out the customer programs, such as this one, that will reward our customers with savings for using less electricity on those costly summer days,” Stockbridge said. “Additionally, these programs get us closer to meeting the state’s goal for reducing energy use 15 percent by 2015.”
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to more than 500,000 electric delivery customers in Delaware and Maryland and over 122,000 natural gas delivery customers in northern Delaware .