Delaware electricity plays a critical role as an "energy carrier," meaning its main function is to deliver energy to users in a more usable form than the primary energy resources used to produce it. Because of its convenience and versatility, electricity use is growing at a faster rate than any other form of energy.

There are, however, issues related to electricity consumption that have important implications on energy planning. Electricity is generated from other fuels, including coal, oil, natural gas and nuclear energy, and is delivered to consumers through an extensive transmission and distribution system. Converting fuels into electricity involves large losses of energy at power plants.

On average, about 70% of  the energy in the fuels used to generate electricity is lost. Smaller amounts of energy are lost in transmission and distribution to customers. The sum of these losses is an important factor in developing recommendations to improve the efficiency of electrical appliances and equipment.

Long-term electricity supply concerns include environmental damage from air pollution, price instability and the danger of supply interruptions. Potential price increases for electricity are another important concern for energy planners. Since the passage of restructuring legislation in 1999, electricity prices have been capped for residential and small commercial customers of Delmarva Power and all Delaware Electric Cooperative customers. In addition, Delmarva Power residential customers received a 7.5% rate reduction. Rate caps will be lifted for the Delaware Electric Cooperative in March 2005, and in May 2006 for Delmarva (see Who Uses Our Energy).

Where Our Energy Comes From

Since 1985, in-state generation of electricity has decreased and now approximately 45% of of the electricity sold in Delaware is imported from the PJM Interconnection. PJM is the regional transmission system operator, based in Valley Forge, PA. Utilities, electricity wholesalers and independent suppliers depend on PJM to balance the supply and demand of electricity within most of the Mid-Atlantic region, including Pennsylvania, New Jersey, Maryland, Delaware and the District of Columbia. Ninety-seven percent of the PJM electricity sold in DE is generated from non-renewable resources such as coal, oil, natural gas, and nuclear. (see where Our Energy Comes from)