Electric Co-op Today

Whenever Delaware Electric Cooperative asked its consumer-members to help “beat the peak” to reduce demand, they turned off lights, adjusted thermostats and delayed power use. Now co-op directors are on the verge of cutting rates to reward members for months and years to come.

“We’ve been able to provide a very cost-competitive product and that’s meant big savings for our members,” said Bill Andrew, president and CEO of the Greenwood, Del.-based co-op.

Since launching the “Beat the Peak” program in 2008, the co-op has repeatedly issued member alerts on peak demand days, giving members a critical role in reducing the need for high-cost, spot-market power purchases.

The co-op’s board has given preliminary approval to a 7.2 percent rate cut. Final approval is expected during a Dec. 16 public meeting, with the lower rates taking effect Jan. 1.

“When we can save our members an average of $108 a year on their electric bills, that’s real money,” said Andrew. Residential bills will be cut an average of just over $9 per month. The Delaware co-op has state authority to regulate its own rates.

Declining member demand for electricity and the economic downturn have contributed to lower wholesale power usage and the co-op is passing on the savings to its members, Andrew said.

The co-op’s board also is considering new energy efficiency and conservation programs that could save consumer-members more than $10 million next year.

The savings from these programs, coupled with the rate reduction, are expected to place electricity costs for co-op members 35 percent below Delaware’s state­wide average, Andrew said.

The co-op’s directors have enthusiastically supported the reduction proposal, said Bill Wells, Delaware E.C.’s board chairman.“This is good news when our members can use the savings the most.”

Tags: Business and Finance, Efficiency and Conservation, Energy Conservation, Power Rates