The State Public Service Commission is slated to name Direct Energy as “Electric Retail Supplier Exclusively Contracted by the State of Delaware.”
A ceremony to mark the designation is slated for Wednesday on the back steps of Legislative Hall in Dover.
The designation, which came after bids from a half a dozen companies, allows Direct to offer longer fixed price packages and related products for the 315,000 residents and businesses in the Delmarva territory, and for Delaware Electric Cooperative’s 84,000 customers.
The company will kick off its efforts in Delaware with a free Nest climate control system. The Nest technology is said to save 10 to 15 percent on electric bills. It is estimated that residential customers may save on average $15 per month with Direct Energy’s fixed electricity prices, set at 10 to 18 percent below Delmarva’s current price, a release stated.
Small businesses can save 5 percent off of Delmarva’s current price, the release stated.
The new energy provider is the result of competitive process and selection by the Delaware Public Service Commission.
More than 15 years after energy deregulation, only 10 to 12 percent of Delawareans proactively select their electricity supplier, compared to 30 to 40 percent of the residents in surrounding states.
Deregulation got off to a rocky start in Delaware with the merger of Conectiv and Pepco Holdings. The merger included a rate freeze that was followed by a 60 percent increase in electric rates.
Under deregulation, Delmarva Power makes its profits off of power distribution. Costs of the electricity itself are passed through on a break-even basis.
The utility has continued to seek rate increases in working to improve the reliability of its system.
Delaware is also a small state regarding size and population, making it less attractive for alternate energy suppliers who like to see a larger customer base.
Energy prices have been declining in Delaware, due to a lot of generating capacity and lower demand brought on by conservation efforts. The state has also seen the shutdown of large electricity users such as GM, Chrysler and Evraz Claymont Steel.
Direct Energy is already marketing rates that will be locked from six months up to 25 months. Click here for further information.
Direct Energy is one of North America’s largest competitive retail energy and energy services providers. It is owned by Centrica plc, a British utility company.
Comments are closed.