|
Virginia Standard Offer Service (SOS) Rates
Effective January 1, 2005, energy supply rates for our Virginia customers will increase. The rate increase is pending regulatory approval and, therefore, is subject to change.
The rate increase is being driven by a new energy supply contract and the rising cost of fuel products used to produce electricity. In summer 2004 Delmarva Power held a competitive bid process for a new energy supply contract in Virginia. While Delmarva Power selected the lowest bidder, the new contract calls for an energy supply price increase.
The impact of the increase will depend on usage; the more electricity one uses, the greater the impact. For residential customers, the total annual bill will increase about 10.7% on average. For commercial and industrial customers, a total annual bill increase will range from 8 percent to 19 percent. While this rate increase is unavoidable, it should be noted that our Virginia customers saw their electricity rates decrease once in 2000, twice in 2001, and again in 2003.
|
