Choptank Electric lowers rates
DENTON — Choptank Electric is lowering its energy supply rates, meaning the average residential customer will see a decrease of $5.34 a month, according to a press release from the company.
Effective Oct. 3, Choptank Electric’s energy supply rates will decrease due to a greater power cost adjustment (PCA) credit. With this change, the reduction is equal to a $5.34 savings per month for the average residential customer, considered to use 1,000 kilowatt hours a month.
The PCA is a billing component, which allows the cooperative to recover or refund the cost of electricity it procures for its members. When the cost of wholesale power goes down, the PCA rate is lowered.
This reduction reflects lower wholesale power costs from Old Dominion Electric Cooperative (ODEC).
“Choptank’s board actively watches ODEC’s wholesale power pricing on a monthly basis and any way that we can help the members save is essential to the co-op business model,” said John Burke, Cecil County board member and Choptank Electric’s representative on the ODEC board. “Co-ops operate on an atcost basis, so when our wholesale power costs are reduced, so are our members’ bills. This is how we add value to our membership, everyday.”
Choptank Electric is a one-eleventh owner of ODEC, whose power supply resources are a combination of owned generation, purchase power contracts including renewable sources and PJM market purchases.
Delmarva Power, who also has customers in Dorchester County, has proposed a rate hike. That electric company filed an application in July with the Maryland Public Ser vice Commission requesting the rate hike.
If approved, the impact on the typical residential customer who uses Delmarva Power will mean an additional $21.42 a month in their electric bills. The typical residential customer is defined as using about 1,000 kilowatt hours a month, but the rate hike applies to all classifications, including commercial customers.
Choptank Electric, a Touchstone Energy Cooperative, is a not-for-profit, memberowned, electric distribution co-op located on Maryland’s Eastern Shore serving approximately 53,000 members.