For Immediate Release
Salisbury , Md. - Delmarva Power today announced the results of competitive bids to supply electricity to its Virginia Standard Offer Service (SOS) customers for one year beginning June 1, 2006 . The proposed new rates are subject to the approval of the Commonwealth of Virginia's State Corporation Commission
Due to significant increases in the cost of fuels used to generate electricity, an average residential customer would see a bill increase of about 42 percent or $44.34 a month, from $106.75 to $151.09, when the June 1st price increases are fully reflected in customer bills.
For Delmarva Power's small commercial customers in Virginia , the new supply rates would increase the average bill about 48 percent. For the company's larger-sized business and industrial customers in Virginia , the new supply rate increases would increase about 59 percent. Individual customer impact will vary according to usage and seasonality.
The increases reflect sharp price increases in the fossil fuels commodities market that sets wholesale electricity rates. During the past year, the price of fuel oil rose 76 percent and natural gas prices increased 67 percent ¹ .
The proposed new rates reflect bid prices received by Delmarva Power for wholesale power to supply retail residential and commercial SOS customers in Virginia who do not buy their electricity from an alternative supplier. Competitive bidding was conducted using a process similar to the one used by Delmarva Power in Maryland and Delaware , and the results are comparable.
"We fully understand that these increases are substantial and that all of our Virginia customers will feel their impact." said Gary Stockbridge, Regional President for Delmarva Power.
"Although we can't do anything to change the costs of energy commodities, we can help our customers significantly reduce their consumption of electricity, thereby lessening the impact of these higher rates," Stockbridge added. "We know this is easier said than done, of course. That is why we have launched "Energy Know-How," a major education and information campaign to help educate and inform our customers on how to use energy wisely."
Stockbridge also urged customers to enroll in the company's Budget Billing program, which spreads their bills evenly over the year, thus avoiding the jumps that come with higher usage in summer and winter.
Delmarva Power will also continue to actively help income-eligible customers enroll in the energy assistance programs administered and supported by the Commonwealth of Virginia and Delmarva Power.
Customers should visit www.delmarva.com for information on energy conservation, low-income customer assistance programs and more information on rates (click on "Your Home" or "Your Business," and then on "Choices and Rates" for either residential or commercial rate information). Customers can also call 800-375-7117 for information and assistance with registering for Budget Billing or energy assistance programs and to request any of Delmarva Power's brochures, including "85 Ways to Save Money and Energy," available in both English and Spanish.
In the coming weeks, Delmarva Power's residential and commercial customers in Virginia will receive detailed individual notification of the new supply rates that are scheduled to take effect June 1, 2006 .
1 U.S. DOE/Energy Information Agency; U.S. DOL/Bureau of Labor Statistics
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, Maryland and Virginia and over 118,000 natural gas delivery customers in northern Delaware .