Delmarva Customers Face Rising Bills Amid PECO Rate Changes

DOVER, Del. – Starting March 1, PECO customers will see a minor drop in their electric rates, while Delmarva Power customers will face significant increases in their utility bills.

According to PECO’s announcement, electric customers using 700 kilowatt-hours (kWh) per month will experience a decrease of $0.33, from $143.89 to $143.56. This represents a reduction of 0.23%, primarily due to a decline in generation charges, which are the costs passed from suppliers to customers. Residential generation charges will fall by 0.048 cents to 8.381 cents per kWh.

Meanwhile, small commercial customers using 10,000 kWh monthly will see generation charges drop by 1.166 cents, resulting in a total charge of $717. Despite these decreases, natural gas costs are set to rise significantly.

Homeowners using 80 hundred cubic feet (Ccf) of natural gas monthly will see bills increase by $8.70, from $112.41 to $121.11, marking a 7.74% rise. For commercial customers employing 400 Ccf, the jump is even steeper, with bills surging by $43.45 to reach $496.17, a 9.60% increase.

Delmarva’s customers, particularly, have raised concerns over their drastically rising utility bills, which they claim have doubled or even tripled since winter began. The issue has attracted the attention of Delaware Governor Matt Meyer, who announced plans to appoint a new advocate for affordable utility bills.

“Just as aggressively as [Delmarva] presents a case for its rates, we have to ensure that the Public Advocate and Public Service Commission protect ratepayers and try to keep rates as low as possible,” Meyer stated. He criticized the current situation, citing it as unacceptable for working families attempting to manage their energy expenditures.

Social media platforms have seen an influx of complaints from concerned Delmarva customers. A Facebook group dedicated to the cause has amassed over 14,000 members, highlighting widespread dissatisfaction. “Delmarva really seems out of control. Greed has definitely set in!” one user wrote.

Delmarva Power attributes the rising costs to increased usage for heating amid colder-than-average temperatures observed across the state. January’s heating demand reportedly reached an all-time high, with average temperatures in Delaware dropping substantially, as confirmed by the National Oceanic and Atmospheric Administration.

Philip Vavala, regional president for Delmarva Power, explained that extreme cold necessitates greater energy consumption. “Heating systems struggle in extreme weather conditions, and it’s recognized by the industry that there was significant cold this January,” he said. PECO reported similar patterns during this period, as their customer usage also reached near-record levels.

In response to customer complaints, Delmarva has halted late payment fees, extended repayment periods, and ceased utility shutoffs as a temporary relief measure.

While the rise in gas prices is a central concern, Governor Meyer is pushing for legislative measures that would ensure clearer communication regarding rate hikes and renewable energy policies. He supports proposed changes to the state’s rate-making procedures to improve accountability for energy utility costs.

Legislative proposals include altering the standards utilized by the Delaware Public Service Commission to curtail unjustified rate increases. Currently, these rules allow utilities to raise rates based solely on profit-driven criteria. On the other side of the aisle, some Republican lawmakers criticize the focus on renewable energy target compliance which they argue complicates the market.

As customers continue to bear the brunt of these rising costs, energy-saving tips such as maintaining thermostats at lower settings and utilizing energy-efficient appliances have been recommended. Utility leaders are also encouraging homeowners to understand their energy usage better to lessen their bills effectively.

In light of these developments, as PECO lowers electric rates while Delmarva’s bills see steep rises, consumers are urged to stay informed about their energy consumption and explore supportive legislative measures being proposed.