Thank you to the many Delaware Electric Cooperative customers who have reduced their demand for electricity, saving DEC tens of millions of dollars and subsidizing lower KwH rates for their entire customer base. You’ve helped DEC avoid major expenses, from new grid capacity to maintenance costs. And you’ve helped them reduce the use of fossil fuels and make progress toward carbon reduction goals.
On March 20, DEC’s board of directors will consider a rate restructuring proposal to shift more than $14 million of additional costs into fixed rates. If it is approved, many folks who have reduced usage via energy efficiency and renewable investments will see their bills go up – despite using less electricity. So will customers who have cut electricity usage to save money or can’t afford to pay for more.
DEC is not regulated, so it can move distribution costs into fixed rates without external review. This third major increase in recent years would raise DEC’s fixed rates another 75%, putting them 86% higher than Delmarva Power.
DEC prefers to talk about high-usage customers whose bills will go down due to an offsetting reduction in KwH rates, but the fact is that many customers will pay more. The less you use, the more your bill will go up.
DEC’s board of directors should reject this proposal.
Net meter customers will be hit again this March when DEC takes their banked credits, which are credits earned for providing excess renewable electricity to DEC that is used to satisfy demand and generate revenue. Net meter customers made significant long-term investments in their systems; they deserve compensation for all power provided to DEC.
A University of Delaware study last year reported that solar already represented 20% of in-state electricity consumption in California, while Delaware was only generating 1.8%, with less than 1.3% from net metered systems. Delaware is ranked in the top five states for risk from climate change. It has goals to reduce greenhouse emissions by 50% by 2030 and reach net zero carbon emissions by 2050. It has a long way to go.
California grandfathers net meter customers for 20 years under the terms and regulations in place when they install their systems to protect their substantial investment. Delaware does not. The cost of solar is coming down, and the Delaware Legislature is reviewing net meter incentives for future customers, as they should. But they should not degrade terms for existing customers. The annual gifting of banked credits to utilities in last year’s interim legislation was wrong.
The Delaware Legislature needs to grandfather existing net meter systems.
Many Delawareans are pursuing energy efficiency, renewable solutions and lower electricity use. They should be applauded, not penalized with higher bills, lost credits and other disincentives. They are working hard to help meet climate goals, but they cannot do it alone. They need support from political and corporate leadership to succeed.
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