Choptank Electric Cost Increase Effective Beginning in May
Choptank Electric is facing rising costs for electricity and beginning in May, most members will see an increase in their monthly bills of approximately $5.45. This is a direct pass-through cost from their not-for-profit wholesale power provider, Old Dominion Electric Cooperative (ODEC), where Choptank purchases the electricity that is distributed to you.
Choptank鈥檚 internal costs, the delivery portion of the bill, remain unchanged. Choptank is doing everything it can to hold down costs, but can’t control the increase in national and international energy markets. They want our members to understand what goes into their bill, why bills are affected and what ODEC and Choptank Electric are doing to help.
Additional information from Choptank Electric Cooperative:
Extreme winter weather and prolonged cold temperatures in January and February 2026, especially with Winter Storm Fern, increased natural gas prices and caused significant power market volatility, driving wholesale power prices even higher. These elevated prices coupled with increased electricity usage during periods of severe winter weather necessitate a mid-year PCA adjustment from ODEC to re-balance power costs.
While Choptank owns generation facilities through our ownership of ODEC, making us less impacted by the power market鈥檚 daily fluctuations, no utility is fully insulated during prolonged regional fuel price spikes. A portion of power must be purchased at market prices, which rose dramatically during the coldest days. We will continue working with ODEC to control costs, increase efficiency and expand our energy supply.
As a co-op, Choptank Electric does not have stockholders, so we don鈥檛 have to make a profit to pay dividends. Any revenue margins are returned to you through our capital credit program. The annual spring capital credit general retirement will total $3 million, which will be issued to members as a credit on May electric bills. The average capital credit issued will be $67.35 per eligible member, based on energy use in the years 1997 and 2024.
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 credits to members. When the cost of energy stabilizes, we look forward to passing those savings on to you again.
You can be assured that your member-elected Board of Directors and the leadership team here at Choptank are working hard to serve our 57,000+ members on Maryland鈥檚 Eastern Shore. We recognize your concern about prices, and we are committed to providing you with the best options available during these uncertain times.