A PHI Company

We're connected to you by more than power lines.

Maryland Electric Rate Increase

Phase-in Option for New Rates

Delmarva Power announced on April 1, 2006 that, due to dramatic increases in the cost of fuel for generating electricity, rates for its Maryland residential customers would go up an average of 35 percent for an average Maryland customer using 1100 kWh of electricity beginning June 1, 2006. As a result of this increase, the Maryland Public Service Commission approved a plan to give Delmarva Power's residential customers the option to phase in the new rates over a one year period.  

The New Rates

  • Customers who did not choose the Phase-In Option saw the full rate increase beginning June 1, 2006.
  • They are not building up any deferral balance that will have to be paid off later.

The Phase-In Option

  • Customers who chose to defer a portion of the rate increase are paying less now than customers who did not opt to phase in rates, but they will pay more later when they are paying back the deferred amount.                                            
  • About 2,000 of Delmarva Power's residential customers in Maryland are enrolled in the Rate Deferral Plan. For those customers, their rates will:
    • Increase about 20.7 percent on June 1, 2007 (5 percent is the 2007 supply rate increase; 15.7 percent is the result of deferring 2006's supply rate increase).

•  Keep in mind customers' rates may change again (increase or decrease) effective June 1 of each year when Delmarva Power purchases additional electricity in the wholesale generation market on behalf of its customers.

 

•  The deferral payback is spread out over an 18-month period from June 1, 2007 to Nov. 30, 2008. During the payback period, the amount you pay will vary each month depending on how much electricity you actually use during that month.

 

•  Those customers who enrolled in the phase-in option and discontinue service prior to November 30, 2008, they will be required to pay back the total balance of the amount deferred. Any balance remaining for the deferred amount owed will appear on the customer's final bill   

  

•  For customers on the Budget Billing Plan who chose the phase-in option, the budget payment amount will be recalculated and may be adjusted to reflect the decision on the phase-in option.  

 

•  Customers can choose an alternative electricity supplier at any time regardless of their decision on the phase-in option. If a customer on the phase-in option switches to an alternative electricity supplier, they will continue to participate in the phase-in. This means they will receive credits through May 31, 2007 and participate in the recovery of the amounts deferred from June 1, 2007 through November 30, 2008.

 

Softening the Impact of Higher Rates 

  • To help customers who are eligible for financial assistance , additional funding has been made available through various state administered Energy Assistance Programs. In addition, the income eligibility limits from Maryland 's Office of Energy Programs have been increased. For more information on these programs, customers statewide can call the Office of Home Energy Programs at 1-800-352-1446.  In Cecil County , the Help Center may be reached at 410-996-0241.  The Community Action Center in Harford County is 410-638-3240.  In Wicomico County , more information is available by calling the Salvation Army at 410-749-3077.  
  • The most effective way to help offset the increase in rates is to conserve energy and use it wisely. Delmarva's energy saving brochure, “ 85 Ways to Save Money and Energy ,” can be printed directly from the Web site. Additionally, Delmarva has added Energy Know How Solutions , a comprehensive energy analysis tool to our web site. This interactive program will enable individual customers to identify energy saving ideas specific to their situation.