More than 50 businesses from Delaware and Maryland attended the informational meeting on Tuesday about the Bethany-Fenwick Area Chamber of Commerce-led electric cooperative, and one business has already joined.
The co-op, which will shop for cheaper electricity rates through Maryland-based aggregator CQI associates, is open to Delmarva Power commercial customers but businesses must be Chamber members to join. Joining will cost $250 per location and could save businesses from 8 percent to 25 percent on electric bills, according to CQI principal Richard Anderson. Businesses must sign up before June 30. Downloadable applications will be available at www.bethany-fenwick.org on the Internet or business owners can call Chamber Executive Director Karen McGrath at (302) 539-2100.
Scott Fornwalt, owner of the Fenwick Crabhouse, attended the meeting but said he is unsure whether he’ll join the cooperative effort.
“It sounds like the Chamber has done a good job in trying to find some solutions to the business problem,” said Fornwalt, who pays up to $3,000 on monthly electric bills in the summer. Fornwalt said the co-op is attractive because its 24- to 36-month flat rates would not include demand charges, which account for about one-third of his summer bills, he said.
“Even if the price per kilowatt hours in the contract is higher than what DPL is quoting, it may be worth it still to go with the co-op,” Fornwalt said. But, he added, “I think it warrants additional investigation.”
McGrath said that she and CQI hope to bid out for rates in mid-July. If market prices are unattractive at that time, CQI will “sit” on the applications until the fall or next spring, when market prices are usually lower.
“The idea is to get people a better rate, not any rate,” McGrath said, adding that the more businesses that sign up, the better the rate.
Anderson said that small businesses — based on rate class — will likely see an 8 to 10 percent savings, while medium-sized businesses could see a 12 to 16 percent savings from their current Delmarva Power bill. Large businesses could save in excess of 25 percent by joining the co-op, he said.
Any businesses who join the co-op, however, will receive one bill from Delmarva Power, which will be delivering the energy. Customers who join should still contact that company if there is a problem with the service.
“Everybody is concerned about the increase in power rates,” said Tom Neville, the president of the Chamber’s board and a co-owner of the Cottage Café in Bethany Beach, in an earlier interview. “This looks like something that is going to help.”
To join the Chamber and become eligible for membership in the co-op, call its office at (302) 539-2100. Prospective Chamber members will have to complete an application and pay an annual charge. For an average business of one to six employees, that charge is $195.
The Chamber’s board voted unanimously on May 3 to form a co-op for its members because of high energy costs, and announced its aggregator on May 8. CQI has been working with chambers of commerce on cooperatives since 2001. It currently serves as an aggregator to 19 other chambers throughout the region.
On May 1, because of high supply contracts based on rising fossil fuel prices, Delmarva Power commercial customers’ electric rates increased anywhere from 47 to 117 percent.
The Chamber started looking into the cooperative alternative in February when the company first announced the hikes in prices. Government and residential cooperative efforts have also stemmed from the rising prices.