DEC seeks purchase of Lewes BPW electric system

Delaware Electric Cooperative is offering Lewes Board of Public Works $1 million a year over 25 years to purchase the utility provider’s electric distribution system.

But at the board’s Sept. 28 meeting, the panel unanimously passed a resolution stating it has no interest in selling the electric distribution system. The board’s electric system serves approximately 3,600 accounts.

Delaware Electric Co-op announced interest in buying the system in a Nov. 4 press release.

Based on a report the board received in June from consultants J. W. Wilson & Associates Inc. and Whitfield Russell Associates. on providing cost-effective utility services, the board found ‘It is not in the best interest of the health, safety and welfare of the city to sell, in whole or in part, the Lewes Board of Public Works’ electric utility.’

C. Wendell Alfred, BPW president, said he was aware of the co-op’s press release but said he couldn’t comment on it because he has not seen it.

The system’s value is set at $16 million but including financing, the co-op has set the value at $1 million a year for 25 years, in the press release.

The co-op asked the board for an official response by Monday, Dec. 19.

Bill Wells, DEC board chairman, said in the press release the co-op’s acquisition of the electric distribution system would be a win-win.

“The board of directors and staff at Delaware Electric Cooperative are very excited about the opportunity to create a superior organization benefiting the residents of the City of Lewes and the members of DEC.

“Not only would this opportunity bring lower rates to consumers in Lewes, but it will help to stimulate economic development within Lewes and make it very attractive to new business looking to relocate,” Wells stated.

He said the sale would make it possible for BPW customers to realize low electric rates and dependable service.

If a sale and transfer were to take place, the co-op would offer to employ all qualified BPW electric workers. BPW electric customers would become co-op members and they would pay co-op electric rates. Wells estimated the acquisition would save BPW ratepayers $2 million a year.

If a sale were closed, all BPW power supply, renewable energy, energy efficiency and demand-side management compliance would become the responsibility of the co-op through existing contracts.

The co-op, founded in 1936, was started under the Rural Electrification Act.

Delaware Electric Cooperative is a member-owned electric utility serving more than 84,000 member-owners in Kent and Sussex counties.