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Electricity prices in City of Milford set to increase

Milford_city_hall_alt.jpg
Milton Pratt
/
Delaware Public Media

Electric prices in the City of Milford are about to rise.

The Delaware Municipal Electric Corporation is increasing its Power Cost Adjustment.

Milford’s economic development and community engagement administrator Sara Bluhm says this is the second adjustment. The first was in January for a natural gas increase.

“And this one is for the suspension of the Indian River Power Plant retiring," she said. "They wanted to shut the plant down. And due to regulation(s), they were not allowed too. So they are raising their rates to cover their costs and we’re passing that along to the customer.”

Bluhm says PJM cited the need to strengthen the grid prior to a shutdown of the the coal-fired, Dagsboro-area Indian River Power Plant to ensure reliability.

Milford does not get its electric from the power plant, but Bluhm says PJM’s decision has a ripple effect.

“It’s interesting," she said. "We do not receive any electricity from this particular Power Plant, but it’s a regional transmission aspect. And their raising rates affects everyone in Delaware.”

Bluhm notes starting Saturday, the power cost adjustment will go up by $0.00804 per kilowatt-hour, a 6.2% increase.

City officials estimate the average bill for Milford residents will pay a little more than $7.50 a month extra; that’s based on residents using 950 kilowatt-hours a month.

The increase will show up starting with November bills, but Bluhm notes that even with the increase, customers will pay less than they were five years ago.

Bluhm adds commercial electric accounts in Milford can also expect an increase - ranging from 5.9 to 7.9% - depending on demand, load factor and time of use.

Kelli Steele has over 30 years of experience covering news in Delaware, Baltimore, Winchester, Virginia, Phoenix, Arizona and San Diego, California.