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Largest Eastern Shore Power Provider Pleads For Rate Increase

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The largest Eastern Shore electric company is asking to raise monthly delivery rates, which are calculated by the cost of the poles and the wires that carry the electricity.
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The largest Eastern Shore electric company is asking to raise monthly delivery rates, which are calculated by the cost of the poles and the wires that carry the electricity.

The leading electric company on Maryland's Eastern Shore is asks state legislators to allow it to increase monthly rates. The increase would essentially result in higher bills to over 200,000 homes.

Delmarva Power officials say a 2.8 percent increase in monthly delivery rates would generate almost $18 million they say they desperately need to cover rising costs and system upgrades in order to provide a safe service to their 200,000 customers.

If approved the increase would begin in late July of 2011.

Delivery rates are calculated by the cost of the poles and the wires that carry the electricity to homes -- whereas the supply rates are usually generated by the cost of fuel.

On average, Delmarva Power customers would see a $4 increase on their monthly bills.

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