BPW predicts drop in Lewes electric rates
Lewes’ Board of Public Works is retooling its electric policy. Under the proposed changes, city residents would pay more for the ability to turn their lights on, but less to keep them on.
| The Lewes BPW will present water and electric rates to the public at a workshop set for 7 p.m., Wednesday, April 28, at Bethel Church on West Fourth Street. |
If adopted, the cost of connecting to the Board of Public Works (BPW) grid for a Lewes resident will rise from $10 to $14. But a reduction in the cost of wholesale electricity should cause usage fees to fall, making for an all-around slimmer bill in the mailbox.
“Everyone will have a reduction in their electric bill,” said BPW General Manager Ken Mecham. Connection fees will also rise from $11 to $31 for commercial users who cool their stores with motor-powered air conditioners; industrial users such as the Cape May-Lewes Ferry Terminal and SPI Pharma will see their connection charge shoot from $26 to $111.
The connection fee increases might look steep, Mecham said, but the BPW plans to buy wholesale power at $79 per megawatt hour instead of $105. While he can’t say what the change in hourly rates will be – the numbers are still being crunched – Mecham said the difference will be enough to offset the connection fee increase.
Board member Jim Gayhardt said the connection fee will help the BPW recover some lost revenue.
A rate weighted more toward consumption clearly favors vacationers, he said, who stay connected to the grid but use it only during summer months.
“If you put it all in consumption, they’ve got quite a deal,” he said. “We’re maintaining this whole system, and they’re only paying for five months of it.”
Mecham said the board’s new policy secures its financial margins while rewarding residents for energy conservation.
“The cost of providing the service will be recovered,” he said, “but when you use less, your bill will reflect it.”
BPW customers won’t see savings immediately, he said, because of a two-month lag in the board’s billing. Customers will consume electricity at the new rate in June, Mecham said, but the wholesaler won’t bill the board until July, and the difference won’t be obvious until August. The BPW will present water and electric rates to the public at a workshop set for 7 p.m., Wednesday, April 28, at Bethel Church on West Fourth Street.
