The City of Newark joined Milford in updating residents on an upcoming electric rate increase.
Newark is a member of the Delaware Municipal Electric Corporation (DEMEC), which is increasing rates.
This change is reflected on all utility bills for usage after September 1st, the date when wholesale cost changes became effective. DEMEC absorbed the cost increase in June and July to allow for enough data on the cost to be able to accurately predict the monthly increase, a release noted.
This power cost increase is primarily due to a decision to keep the Indian River Power Station in Sussex County open.
Grid operator PJM wanted the coal-fired power plant open while improvements are made to the electric infrastructure around the plant.
NRG had planned to shut down the plant this summer, due to its costs not matching up with those of natural gas-powered generators.
The regulations impact all electric customers on the Delmarva peninsula and Cecil County with the elevated rates expected to continue for 4.5 years.
The pass-through results in an 8 percent increase in electric bills for the average household and small business accounts in Newark. Commercial accounts in Newark can expect an increase ranging from about 9 to 11 percent depending on demand, load factor, season and time of use.
Neither DEMEC nor the City of Newark directly receive any of the power supplied by the Sussex County coal-fired plant but are connected to the same transmission system.
The city stated that officials are working with local, state, federal and business leaders to find solutions for reducing costs where possible. Until a resolution is identified, the city advised customers to find ways to conserve power.
Reducing household energy consumption by two to three kWh per day will offset the rate increase.
The City of Milford issued a similar advisory on a rate increase last week.
Questions regarding utility billing or the upcoming rate change can be directed to the Payments and Utility Billing Division at 302.366.7000 orpaymentsandutilitybilling@newark.de.us.
