For Immediate Release
Delmarva Power Announces Results of Bidding For Delaware Standard Offer Service
Delmarva Power today announced the results of a competitive bidding process to procure electric supply service for its residential customers in Delaware. During three rounds of bidding, eleven different wholesale electric suppliers submitted bids which resulted in an increase of 59% for the typical residential customer. This increase in costs will mean that a typical monthly electric bill will go up about $54, from $91 per month to $145 per month, based on usage of 1000 kWh.
The competitive bidding process, which is similar to one used in surrounding states, is needed to establish the Standard Offer Service rates that Delmarva Power customers will be charged for electricity once a rate freeze put in place in 1999 expires in May of this year. Since 1999, the cost of generating electricity has increased substantially as a result of dramatic increases in the costs of coal, oil, and natural gas - the fuels most often used to generate electricity. Delmarva Power and the Delaware Public Service Commission estimate that the Delaware economy has benefited from customer savings of approximately $1 billion during the time the rate freeze has been in effect.
Delmarva Power Regional President Gary Stockbridge said, "The bidding process has established a wholesale market rate for electricity through a fully competitive process overseen by the Delaware Public Service Commission that is in line with many other electricity providers in the region."
Delmarva Power electric customers have the option to be served by a competitive supplier. Customers not served by a competitive supplier are scheduled to begin receiving Standard Offer Service on May 1, 2006 .
Stockbridge said, "We are sensitive to the impact of these rate increases and are actively working with policy makers to explore options for addressing the issue. In the meantime, we will continue to encourage customers to use electricity wisely in order to do what they can to minimize the impact of higher rates."
"It was important for Delmarva Power to talk about this dramatic increase in rates as soon as we had the information," said Stockbridge. "Along with the information about higher energy costs we are also working hard to provide customers with information about how they can cut their energy usage," Stockbridge added.
New rates for small business and industrial customers vary depending on the type of service they receive but are significantly higher as a group, reflecting the extended price freeze and higher underlying fuel costs noted above. All rates will be posted on Delmarva Power's website by February 10th so that customers have a benchmark to consider offers from competitive suppliers before the new rates take effect.
To access individual information on conserving energy and saving money in your home: Home Energy Saver Calculator http://hes.lbl.gov/
For information about energy efficiency tax credits:
For information on low-income energy assistance:
For more information about conserving energy: http://www.delmarva.com/home/education/conserving/