This project again demonstrates that DEMEC
and its municipal utility members are leaders in the deployment of solar generation resources in Delaware," said DEMEC
President and CEO Patrick E.
DEMEC is a leader in the development and support of renewable energy," said DEMEC President and CEO Patrick E.
DEMEC is headquartered in Smyrna, Delaware, and represents and serves the nine municipal electric distribution utilities located in the State of Delaware.
The continued goal and mission of DEMEC is to advance the principles of public power and provide competitive, reliable energy supply and services to its member's communities at the lowest possible cost.
APM's agreement with DEMEC
allows it to continue its focus on lowering member rates while outsourcing certain electricity, natural gas, and energy scheduling management functions.
Cost of Power: The addition of the planned second unit at Beasley and the Fremont Energy Center PPA (Fremont) should enable DEMEC to have more control over its power costs especially during peak periods.
DEMEC owns a 45-megawatt (MW) peaking unit, but historically obtained most of its power requirements through bilateral contracts and market purchases.
While weak compared with other Fitch rated systems, DEMEC benefits from an absolute call on members for unexpected liquidity needs.
DEMEC is a joint action agency providing wholesale energy to nine municipal electric systems in the state of Delaware (GO rated 'AAA' by Fitch) serving 10,000 number of customers.
Going forward, DEMEC expects its members' demand for both peak and base load power to increase fairly rapidly, and management is exploring several options to meet this growth.
Fundamental strength for the rating is provided by the financial stability of DEMEC and the individual project participants the project's favorable economics, and DEMEC's importance to the member systems as a voice on regional transmission and reliability issues.
The existing arrangement has been beneficial to DEMEC
, both on a power supply and price basis, and at this time, it is somewhat unclear what the future power supply mix will look like.