MILFORD, Del. - Homeowners in Milford will see a 2.4% increase in their electric rates starting in June.
The City of Milford, which is a powered by electric utility company Delaware Municipal Electric Corporation, will be increasing the current power cost adjustment by $0.00353 per kWh to $0.02477 per kWh for energy usage. According to the city, the increase is due to market driven capacity cost increases that impacts all electric users on the Delmarva Peninsula. Commercial accounts can expect an increase ranging from 2.3 to 3.0% depending on demand, load factor, change in seasons, and time of use. Despite the new increase, the city says their overall electric rates continue to be among the lowest rates in the state.
"But the auction based market for capacity is unpredictable. Fortunately, DEMEC has physical hedges in places that helped cut the rate impact of the suction results nearly in half," said Finance Director Lou Vitola. Customers are encouraged to use Efficiency Smart for rebates, insulated windows and purchasing a water heater jacket, which the city says are steps to cut costs following the increase.