Choptank Electric Cooperative Members to see Increase in Monthly Bills

Beginning this month, Choptank Electric Cooperative members will see an increase in their monthly bills – of about $9.49. This is a direct pass-through of the cost of purchasing the electricity that is distributed to members. The delivery portion of the bill will remain unchanged.

Additional information from Choptank Electric Cooperative:

We are doing everything we can to hold down internal costs, but we cannot control the increase in national and international energy markets.

As a member of a not-for-profit electric cooperative, you have the benefit of a dedicated staff working to bring reliable, affordable electric service to your rural location – at cost. Since our inception in 1938, the member-leaders of Choptank Electric Cooperative have prioritized the families, farmers and small businesses in the communities we serve. We do not have stockholders, so we do not have to make a profit to pay dividends. We work for you. Any revenue margins are returned to you through our capital credit program.  

In fact, we recently announced that the annual capital credit general retirement this spring is the largest in Choptank Electric Cooperative’s history, totaling $3.5 million, which will be issued to members as a credit on May electric bills. The average capital credit issued will be $79.89 per member, based on energy use in the years 1995, 1996 and 2023.  

We belong to Old Dominion Electric Cooperative (ODEC), a generation and transmission entity owned by 11 electric distribution cooperatives. We buy 100% of our electricity through ODEC, which is similarly formed as a not-for-profit to generate and transmit electricity at cost.  

From a generation perspective, ODEC has been subject to the significant increase in U.S. prices for energy commodities such as crude oil, natural gas, gasoline and diesel fuel. The high winter demand for natural gas coupled with cold temperatures in January and February increased the price of natural gas and caused significant market volatility on some days, driving short-term prices even higher. These higher prices, coupled with increased electricity usage during periods of extreme winter weather, necessitate a mid-year PCA adjustment to rebalance power costs. 

Here at Choptank, we take rate increases very seriously and are aware this will impact our members. We hope this increase in energy prices is temporary. If the past is any indication, the cost of energy fluctuates from year to year. Over the last several years, our annual power cost adjustment has resulted in a credit to members. When the cost of energy stabilizes, we look forward to passing those savings on to you again.

You can be assured that the member-elected Board of Directors and the leadership team here at Choptank are working hard to serve our 57,000+ members on Maryland’s Eastern Shore. We recognize your concern about prices and we are committed to providing you with the best options available during these uncertain times.