Milford electric rates will see a 2.4% power cost adjustment increase in June
The City of Milford, a community electric utility powered by the Delaware Municipal Electric Corporation (DEMEC), will be increasing the current Power Cost Adjustment (PCA) by $0.00353 per kilowatt-hour (kWh) to $0.02477 per kWh for energy usage beginning in June 2024.
The power cost increase is entirely due to market-driven capacity cost increases that impact all electric users on the Delmarva Peninsula. The pass-through results in a 2.4 percent increase in electric bills for the average residential and small business accounts in Milford. Commercial accounts in Milford can expect an increase ranging from about 2.3 to 3.0 percent depending on demand, load factor, seasonality, and time of use.
Even with this rate increase, bills are comparable to the City’s rates dating back more than six years. Additionally, the City’s overall electric rate continues to be among the lowest rates in the State of Delaware, while market forces are pushing power rates higher across the region for all electric customers – not just Milford residents and businesses.
“DEMEC strives to represent the City of Milford and all public power cities and towns in Delaware with rate stability and cost control at the forefront of its goals,” Finance Director Lou Vitola said, “but the auction-based market for capacity is unpredictable. Fortunately, DEMEC has physical hedges in place that helped cut the rate impact of the auction results nearly in half.”
To help offset this increase, the City encourages customers to utilize Efficiency Smart (https://www.efficiencysmart.org/milford-delaware) for rebates and an electric usage monitor, insulating windows, purchasing a water heater jacket, utilizing the City’s budget plan and servicing their HVAC system. Reducing your household energy consumption by about 6 kWh per day will completely offset the cumulative effect of all wholesale power costs passed through since 2020.
Questions regarding utility billing or the upcoming PCA can be directed to the City’s Customer Service Department at 302-422-6616.
About the City of Milford: (www.cityofmilford.com) The City of Milford, incorporated in 1807 and located in Kent and Sussex Counties along the Mispillion River, is home to 11,000+ year-round residents, 500+ retail businesses and non-profits, local restaurants, parks, trails, small town events, major healthcare providers, an historic shipyard, and its own school district. Known throughout the state as River Town, Art Town, Home Town, the City celebrates the beauty of its natural resources, the ingenuity of its people and its commitment to quality of life.
About DEMEC: (www.demecinc.net) DEMEC was incorporated in 1979 as a public corporation constituted as a Joint Action Agency and a wholesale electric utility. DEMEC represents and serves the following municipal electric distribution utilities located in the State of Delaware: City of Newark, MSC of the City of New Castle, Town of Middletown, Town of Clayton, Town of Smyrna, City of Milford, Lewes Board of Public Works, and City of Seaford.