Consumer Energy Education Group

Frequently Asked Questions

How much will my electric bill increase?
As a result of the competitive bidding process to procure electric supply service for its residential customers in Delaware, Delmarva estimates an increase of 59 percent for the typical residential customer, beginning in May, 2006. This increase in cost 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.

Why is my electric bill going up?
Since the passage of restructuring legislation in 1999, electricity prices have been capped for customers of Delmarva Power and the Delaware Electric Cooperative. In accordance with the legislation Delmarva Power residential customers received a 7.5 percent rate reduction. In 2003, the PEPCO/Conectiv (now Delmarva Power) merger settlement increased rates about 1 percent system-wide, but extended the rate freeze for Delmarva customers until May 2006. Several minor adjustments to rates have been permitted since then pursuant to the settlement, but rates for Delmarva residential customers are still about 4.5 percent lower today than they were prior to the passage of the legislation ion 1999. Rate caps were lifted for the Delaware Electric Cooperative in March 2005, and will be lifted for Delmarva Power in May 2006. We know that rates will increase for Delmarva customers at the end of the freeze, because the cost of producing electricity has increased significantly since 1999 and substantial rate increases have been experienced in all our neighboring states when their rate caps were lifted. Rates for Co-Op customers have increased about 6 to 8 percent since their rate freeze was lifted and are expected to increase further in early 2006.

What questions should I ask potential suppliers?

Is the supplier certified by the DE Public Service Commission?

What is the total price per kilowatt-hour (kWh)?

Does the price stay the same or does it vary?

Does the price depend on usage?

What is the length of contract?

Are there any other fees such as a monthly service charge?

Is there a fee for early cancellation of the contract?

What billing options does the supplier offer?

Will you receive one bill or two?

Is there a bonus for signing up?

Are there any additional services offered?

What fuels are used to produce the electricity?

Contact name and phone number

Customer service hours

What are current market rates and why do they affect my electric bill?
Current market rates are the rates charged by wholesale companies that sell electric power to utility companies. Delmarva Power and Delaware Electric Cooperative solicit bids from competitive electricity suppliers and then purchase electricity from one or more of those suppliers.

What factors affect the price of energy?
Market prices change depending on a number of factors including the amount of supply and demand for electricity. These prices rise and fall the way home heating oil, gasoline and some grocery prices change.

How is electricity delivered?
There are three steps to getting electricity: generation (production of electricity), transmission (sending high voltage power to distribution points) and distribution (delivering power to your business or home).

Generation: Electricity is produced or generated at a power station. Electricity providers either generate the power themselves at power stations they own or they purchase it from other providers and resell it to consumers. These companies generally are called electricity suppliers.

Transmission: Electricity generated in a power station is delivered from the station by way of high-voltage transmission lines, usually mounted on large wooden poles or steel towers, out to the communities where it is used by homes, businesses and factories.

Distribution: When electricity is delivered close to where customers live and work, the voltage is reduced and it is transferred to smaller distribution lines that carry it to houses and businesses.

How am I charged for electricity?
The amount of electrical power you use is measured in kilowatt hours (kWhs). Major users of electricity include space heaters, water heaters, air conditioners, refrigerators, freezers and clothes dryers.

What can I do to lower my bill and conserve energy?
There are good ideas about ways to lower your energy bills and conserve energy on this website and several others.

Partnerships for Home Energy Efficiency (www.energysavers.gov)

Delaware Public Service Commission (www.state.de.us/delpsc)

Will I be affected if I am not a Delmarva Power or Delaware Electric Cooperative customer?
Customers who receive electricity from municipalities were not affected by the legislation. Municipalities that provide electricity are: Clayton, Dover, Lewes, Middletown, Milford, Newark, Seaford and Smyrna.

Will the utility companies offer any special payment plans to help people deal with unpredictable market rates?
Check with your electric supplier to see if budget billing is available. Budget billing evens out your energy costs so that you pay about the same each month, making it easier to manage your monthly expenses. Budget billing is based on your past energy use patterns.

What is the Consumer Energy Education Group?
The Consumer Energy Education Group (CEEG) includes people from the Public Service Commission, Delaware Public Advocate’s Office, Delaware Economic Development Office, the Energy Office of Delaware Department of Natural Resources and Environmental Control, Delaware Health and Social Services, Delaware Office of Education, Delaware Electric Cooperative, Delmarva Power, and electric suppliers such as Constellation NewEnergy, and several chambers of commerce. The group is focused on providing information to help consumers conserve energy.