DEC Board Progresses Toward Rate Reduction

DEC Board progresses toward rate reduction

The Board of Directors at Delaware Electric Cooperative today tentatively approved an across the Board electric rate reduction subject to final Board approval at a Public Hearing on Wednesday December 16, 2009, 1:30 p.m. at the Cooperative. This is the second step in a three step process followed by the Board when they are adjusting rates for their members.

The Board of Directors for Delaware Electric Cooperative is proposing an average annual rate decrease of 7.22% beginning on January 1, 2010, which would lower electric bills by $9.04 for a residential member using 1,000 kWh per month and lowers the residential rate to $112.91 for 1000 kWh per month.

“The Cooperative is proud to announce this rate reduction especially during these tough economic times when our members could use the savings the most,” said Bill Wells, Chairman, Delaware Electric Cooperative Board of Directors.

The Cooperative identified many reasons why they are able to offer the rate decrease, but highlighted the members’ involvement in the “Beat the Peak” program as a key contributor to lower rates. In addition, the Cooperative through their power supplier ODEC has taken advantage of their asset based portfolio, declining markets, experienced staff and long term strategies to secure lower cost power for their members.

“Because we are a not for profit, member owned cooperative when we save money we pass that savings on to our members in the form of lower rates and excellent service,” stated Bill Andrew, President/CEO, Delaware Electric Cooperative. “Your cooperative is focused on providing high valued service and stable prices for the long term,” he continued.

In addition to the rate decrease the Board of Directors and Staff outlined a new Energy Efficiency Programs charge to keep the cooperative on the leading edge in energy efficiency and conservation efforts. Overall, the additional member savings are estimated to exceed $10 million in 2010. Incorporated with their already low rates this decrease will place the cost of power for cooperative members 35% below the average cost of other electric consumers in the state.

Delaware Electric Cooperative is a member-owned utility serving over 77,000 Kent and Sussex County member-owners.