WILMINGTON — With air conditioning units blasting cold air to counter the heat wave sweeping Delaware this week, the largest electric provider in the state has announced a new fund to help customers offset high power bills.
Pepco Holdings, an energy distribution company and subsidiary of Exelon Corporation, has announced a new $4.5 million Customer Relief Fund. Energize Delaware has also committed $2 million to expand its Home Energy Check-Up & Counseling Program to Delawareans.
The one-time fund was created after months of outcry from Delawareans who saw their Delmarva Power bills escalate after the 2024 energy auction held by the region’s grid operator, PJM Interconnection, saw energy prices jump from $2 billion to $14 billion.
State regulators also approved Delmarva Power’s rate structure, which will increase the average consumer’s bill by $10 a month, rolled out in June.
Delaware Gov. Matt Meyer announced that his office reached a deal last week with Energize Delaware and Pepco Holdings, the parent company of Delmarva Power. Meyer said on Monday that the deal shows what’s possible when the private and public sector work together to find a path forward.
“This is one example of a problem, and the problem is not solved. No one is saying energy prices are going to be low. But this is one small step forward to provide relief as we’re expecting an extremely hot summer,” the governor said during a press event held at the CSC Station at the Riverfront.
The Customer Relief Fund will provide a $300 credit for customers that are low- and moderate-income Delmarva Power customers. This would impact 20,000 Delawareans; Delmarva Power has 312,000 electric accounts in the First State.
Tyler Anothony, President and CEO of Pepco Holdings, recalled when he met Meyer for the first time in the winter, he was told that people were financially hard-pressed and what could they do to assist.
“When you think of the 100-degree weather, we’re using more energy [with air conditioners] and that just compounds it,” Anothony said. “I talk with my employees that these high bills have eroded the trust our customers have in us. There’s nothing like getting that bill and going, ‘How are we going to handle this?’ This is our way of giving back.”
In addition to the $300 credit, all Delaware and Maryland residents will now have access to the Home Energy Checkup and Counseling Program through Energize Delaware. This program allows consumers to have an advisor walk through their home and check on insulation, heating and air conditioning units and more to identify where energy can be saved. That could result in another $190 in savings if all energy saving measures are met.
In a later interview with the press, the Pepco Holdings CEO reiterated that while the fund was a one-time deal, there were prospects to work with Meyer’s office to find other ways to offset costs, as the supply costs, or the cost of energy consumed, continue to rise.
He added that the PJM Interconnection was trying to find solutions for supply and demand, but with technology breakthroughs in electric vehicles and artificial intelligence, coming at a fast pace — data centers cropping up to serve them — there’s more strain on the electric grid now than ever.
“There’s different things increasing demand, and you’re also seeing a lot of construction and permitting for solar in the queue for PJM. That will help curb that need,” Anothony said. “What we need to do is bridge that and get more power sources that are more base load units for those long-term needs.”
Meyer, who campaigned on innovation and creation of next generation tech jobs, said he would be looking at what needs to be done to lead Delaware to produce more energy for businesses.
“That’s not what we’re talking about today. We’re talking about making sure that Delaware working families don’t get squeezed this summer,” he said.
Applications for the Customer Relief Fund will open in July. For more information, visit www.delmarva.com/my-account/customer-support/assistance-programs-de/customer-relief-fund.
