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Understanding Utility Rate Increases
As a way to give notice to our customers, the letter and graphic below were in a previous edition of the newsletter and on our City website. We also had it posted to social media and in the newspaper. A copy of the letter was mailed to every utility customer. This way we could guarantee that every utility customer was notified and did not rely upon you viewing it online or in the newspaper.
Unfortunately with inflation costs, we are not alone in this. Many utility customers throughout the state have seen increases as well.
So how did we get here?
City Council approved the rate increase on June 13, 2022 with the final approval being June 27, 2022 during the final budget reading that made it effective for bill dates beginning July 1, 2022.
This involved many conversations throughout the Budget Hearing process.
One of the main focal points of their discussion was should we do a property tax increase or a utility rate increase to fill the deficit?
Included in their conversation was that we (in the City of Dover) have so many properties that qualify as tax exempt
(Think about all of the government facilities, churches, schools, nonprofits etc.)
In order to make up the cost differences, rates had to be raised.
Next, they discussed the HOW part and asked...
Is it better to spread the cost amongst all properties in Dover or only those that pay taxes?
They agreed that it was better for the majority of the costs to be split amongst everyone.
(Utility costs versus all of it on a property tax increase).
The first thing people have noticed was the Power Cost Adjustment that used to be shown as a credit on the bill. (There was a balance in an account so we returned those monies to the utility customers in the line of a credit showing on your bill).
Then a 3 cent per kWh charge was added on. That 3 cent charge per kWh is listed in the power cost adjustment where you used to see that credit.
What did not help for the shock value of the bills is the fact that we had unusually high temperatures (that seemed never ending). Look at your usage kWh that your electric ran for and you will see that is where your increase is at, increased usage. The oppressive heat caused many people to run air conditioners more, or their central air unit was kicking on and off more just to keep your home/business cool.
Electric bills are something that each of us has some control over.
Instead of keeping your air conditioning at 72 turn it up to 76 for example.
(See the tip sheet below for more tips or CLICK HERE to view as a pdf)
So what if you do all you can do to save and you still need help?
There are many organizations that have offered utility bill assistance in the past. We have compiled the listing and it can be viewed by clicking Assistance Programs . It is contingent on their availability of funds and you will have to meet their criteria (income etc).
Energize Delaware also has various programs available for more information please go through Energize Delaware's website at the links provided below.
Energize Delaware.
Some individuals have asked how does the costs of other things impact my cost for electric?
To get a little more technical on how the cost of natural gas and other variable inflated costs have impacted our costs as well as how we purchase electric to provide to our customers please read the attached letter from our Electric Director by clicking below:
Power Cost Increase - Letter from Electric Director
It is our hope that this provides you with some of the answers many may have been looking for. It is also our hope that each of you looks at distributing the costs across both avenues was a better way, or at least a more equitable way, so now all will pay their share of the increase.
A lot of time and effort was put forth by staff and Council to try and be fair and equitable to all.
Thank you for taking the time to read this!
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