Dan Cannon is a resident of Seaford. This letter was also sent to the city’s mayor, Matt MacCoy, and to City Council on Aug. 30.
On Aug. 21, I read a news article reporting that, in January, Delaware had received a $25 million-plus settlement for a complaint about electricity producer NRG overcharging Delaware customers during the shutdown of the Indian River Power Plant. The settlement was distributed among Delaware electricity providers Delmarva Power ($10.9 million), the Delaware Electric Cooperative ($5.6 million), the Delaware Municipal Electric Corp. ($3.3 million) and others. DEMEC is the electricity provider for Seaford and seven other municipalities.
Delmarva Power and the Delaware Electric Co-op used settlement moneys to lower customer bills “earlier this year,” in line with the recommendation from the Delaware Public Service Commission, which initiated the complaint with NRG. However, Seaford customers like us are still waiting for refunds/lower bills.
According to the article, “Seaford received almost $283,000. City Manager Charles Anderson said the city will likely use the money to offset any potential electricity rate increases next year.” Mr. Anderson’s statement has been echoed by Seaford Councilman Alan Quillen.
My observations
The $238,000 settlement for Seaford was the direct result of a complaint by the Delaware Public Service Commission for overcharging by NRG.
NRG overcharges were paid by customers like me, making the settlement funds “lost” assets belonging to us, Seaford customers, not the Delaware Municipal Electric Corp. or the city of Seaford.
Withholding the settlement funds from customers by administrative fiat is a political decision.
There has been no action by the mayor and City Council to review and/or approve this decision.
My position
Mr. Anderson’s comments about the use of the settlement funds come after multiple Seaford utility rate increases in 2024. These increases have pushed my July electricity bill to nearly $300, even as I was away on vacation for 10 full days, with my house’s thermostats set no lower than 78 degrees. By personal observation, my account is virtually negligible compared to other customers who are struggling mightily to pay extraordinarily high July electric bills.
Given a brutally hot summer with the resulting giant utility bills, withholding settlement funds for hypothetical “electricity rate increases next year” appears extremely callous, especially when a bit extra of our own money now could help everyone, especially those struggling to keep up.
As a city of Seaford customer, I formally request that an action item for an immediate rebate of the $238,000 in settlement funds be placed on the Sept. 9 agenda, to be considered and acted on by the mayor and City Council.
Bottom line: Be compassionate/ethical. Give us back what we were overcharged now.
Thank you for your attention.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
