Three local towns are among the 16 members representing 75 accounts in the newly-formed Bethany-Fenwick Area Chamber of Commerce-led electric cooperative, boosting the Chamber’s efforts.
]Selbyville, which was one of the co-op’s first members, alone accounts for more than 30 of the accounts registered. South Bethany and Frankford have also already registered with the Chamber and Executive Director Karen McGrath expects more towns — including Millville, where representatives picked up an application earlier this week — and businesses to sign up as the June 30 registration deadline approaches.
“The last week of the month is when we’re expecting the most activity, so to have 15 already — I think we’ll definitely have more than 30,” McGrath said, adding that officials from CQI, the electric aggregation firm working with the Chamber, said that 25 to 30 registered members would be a “good group.”
“We’ve got more coming in every day,” she said.
The co-op, which was formed by a unanimous board vote in early May to counter Delmarva Power rate hikes, is open to Delmarva Power commercial customers in Delaware and Maryland who are members of the Chamber. Registration in the co-op costs a one-time fee of $250 per location.
Richard Anderson, a principal with CQI — a Columbia, Md.-based firm — said earlier that members of the cooperative can expect an 8 to 25 percent savings from their current Delmarva Power bill.
Anderson said that small businesses — depending on rate class — will likely see an 8 to 10 percent savings, while medium-sized businesses could see a 12 to 16 percent savings. Large businesses could see savings in excess of 25 percent by joining the co-op, he said.
Robert Daisey — the president of the Frankford Town Council and who registered his business, Delaware Appliance, with the co-op — said registering the town was “one of those no-brainers.”
“It makes perfect sense,” Daisey said. Frankford’s street-light account alone increased almost $200 with a full month’s implementation of the Delmarva Power increase, rising from $785.97 to $985.18. The town has five other accounts separate from the street-light bill. “We’re trying to save on electric bills for the town.”
Gary Taylor, Selbyville’s town manager, agreed with Daisey, calling registration in the co-op a no-brainer. The more than 30 accounts in the town of Selbyville generated summer bills of up to $12,000 before the Delmarva Power rate hike. Facing nearly a 100 percent hike at some of its locations, Selbyville could — without joining such a cooperative effort — begin to sign off on $20,000 summer-month energy bills. Sill, Taylor said he has some concerns.
“One of the things that does bother me about is if the market does drop down even further, we don’t get the advantage of the drop down,” said Taylor, who already registered the town and its more than 30 accounts with the co-op. “That’s the gamble you take. If he comes in with a good rate, it will be worth our while.”
McGrath and Anderson said that they hope to bid out for lower rates in July, allowing members to switch supply companies by the end of next month, but it depends on market conditions. If bids are less than attractive, McGrath said that the Chamber and its energy consultant will “sit” on the applications and wait for market conditions to subside, likely sometime in the fall or winter.
To take advantage of benefits of the co-op, prospective members must register before the end of this month. The Chamber, McGrath said, has already received almost a half-dozen new members — including the town of Frankford — who want to take advantage of possible lower rates.
To join the Chamber and become eligible for membership in the co-op, call its office at 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. McGrath announced the Chamber’s partnership with CQI on May 8. CQI is currently working with 19 other chambers throughout the region on similar cooperative efforts to counter rising prices.
On May 1, because of high supply contracts based on rising fossil fuel prices, Delmarva Power commercial customers’ electric rates increased from 47 to 117 percent. McGrath said that recent receipt of the first bills since the increase encouraged registration with the co-op.
“We’ve had a lot of interest in the past week because a lot of people got their first bill,” she said. “It wasn’t even a full 30 days but they saw significant increases. Now it’s a reality.”
The Chamber started looking into the cooperative alternative in February, when the electric company first announced the then-pending rate hikes. Government and residential cooperative efforts have also stemmed from the rising prices.