For Immediate Release
FOR IMMEDIATE RELEASE Contact: Bridget A. Shelton, 302-283-5808
Conectiv's residential customers to see 5.6 percent increase, effective June 1
SALISBURY, Maryland - Electricity rates for Conectiv Power Delivery's customers in Maryland will increase on June 1, following the results of a competitive bidding process monitored by the state Public Service Commission for obtaining electricity supply.
On average, Conectiv's residential customers can expect their monthly bills to increase about $4 a month, approximately 5.6 percent of the annual total bill. The impact on small to mid-sized business customers will range between 5.2 percent and 6.7 percent of the average annual total bill. The impact of the rate increase will depend on usage, with the more electricity used, the greater the impact.
The new rates are the result of a competitive bidding process to secure the lowest available market rate for power. The increase in electricity rates is a reflection of Conectiv paying more for wholesale power.
"Given the rising costs of fuels used to generate electricity - natural gas, coal, oil - during the past year, it was expected that the market-based supply rates would be higher this year," said Mack Wathen, vice president of Regulatory Affairs for Conectiv Power Delivery. "However, the competitive bid process enables Conectiv to meet its electric needs at the lowest possible prices for our Maryland customers."
On average, the total monthly electric bill (including supply and delivery) for a Maryland residential customer using 750 kilowatt hours will increase from $71.70 to $75.72, effective June 1.
Energy prices across the board have risen sharply in the last few years at both the wholesale and retail level. Since 2000, for instance, the price of coal has soared 112 percent; the price of natural gas has jumped 68 percent; and home heating oil is up 81 percent.
Maryland's transition to competitive, market-based electric rates began in 2000 when Conectiv's rates were reduced by 7.5 percent and capped to give time for a competitive market to develop. The cap on electric supply expired July 1, 2004 and the rate for Standard Offer Service - the power sold by Conectiv to customers who did not choose an alternate supplier - rose to reflect the higher market-based price. The rates Conectiv charges for delivery of electricity have not changed.