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Understanding Newark’s Utility Rate Increase

Understanding Newark’s Utility Rate Increase

Posted on November 1, 2022

The City of Newark, a community electric utility operated by the Delaware Municipal Electric Corporation (DEMEC), is increasing the current Revenue Stabilization Adjustment (RSA) by $0.01367 per kilowatt-hour due to circumstances beyond its control (kWh).

This rise in electricity costs is mostly due to federal restrictions that compelled NRG energy’s Indian River Power Station in Dagsboro, Delaware, to continue running for transmission system reliability considerations after it filed to close.

The regulations will affect all electric users on the Delmarva peninsula and Cecil County for the next 4.5 years.

The pass-through raises electricity prices by 8% for the average Newark residential and small business account.

Commercial clients in Newark should expect a 9 to 11 percent rise, depending on demand, load factor, seasonality, and time of usage.

If you have any questions about utility bills or the anticipated rate adjustment, please contact the Payments and Utility Billing Division at 302.366.7000 or send an email to paymentsandutilitybilling@newark.de.us

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