For Immediate Release
Summer residential electric bills to decrease about $3.78 a month
NEWARK , Del. - This summer, Delmarva Power's supply rates will decrease for its Maryland customers due to lower-priced contracts, which will take effect June 1, 2010. For the average residential customer, summer monthly bills will decrease by 2.3 percent, resulting in a savings of $3.78 per month. Additionally, summer monthly bills for the company's small business customers in Maryland will decrease about 3.8 percent, on average, resulting in a savings of $18.78 per month.
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 alternative supplier, their utility buys power for them and passes along the cost. This is called Standard Offer Service.
Maryland 's bidding process requires Delmarva Power to solicit a series of two-year contracts twice a year with each contract covering approximately 25 percent of the anticipated amount of electricity required to meet the needs of customers. The current contract expires in May 2010.
"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 would also encourage our 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. 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 more than 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware .