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11 April 2006 -- Delmarva Power residential and small commercial customers in Delaware have until April 28 to 'opt out' of a plan that would increase electricity rates gradually instead of all of at once, as a result of legislation passed by the General Assembly and signed into law by Governor Ruth Ann Minner.
If the power company's Delaware customers do not want the higher electricity rates to gradually increase, which will also cost the customers interest, they must notify the company by phone or online.
Delmarva Power President Gary Stockbridge said, "We want our customers to have the information they need to make the best decision for them. It's important that they understand that if they do nothing, the phase-in will take effect on May 1."
The phase-in option is intended to provide customers with the necessary time to adjust to the higher electricity rates driven by the rising cost of fuels used to generate electricity.
"Simply put, customers must decide by April 28 if they wish to pay less now, deferring payment for the higher rates on the energy they're using now and absorbing those costs later," Stockbridge said. "Or, they can begin paying the new higher rates immediately."
Stockbridge noted that the typical residential customer who does not opt out of the Delaware Rate Deferral Plan will build up a balance of approximately $395 that needs to be paid back with interest (approximately $30) between January 1, 2008 and June 1, 2009.
Stockbridge said, "The final legislation aligns with our earlier estimates of the total amount being deferred and the time frame for recovering that deferral balance. The legislation also provides appropriate assurances that the company will be able to fully recover any money it borrows to finance the deferral plan."
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