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ESMEC-ET Electric Supply Portfolio Report��May 14, 2026

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Portfolio Performance Snapshot

  • Overview:
      • FY25 electric supply cost of $12.3 million/151,454 MWhs for approximately 900 accounts located behind Delmarva Power for 26 separate local government entities. Portfolio unadjusted peak load capacity of 23.3 MW as of June 1, 2025 (ESMEC-ET members actively manage peak capacity).

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      • ESMEC-ET utilizes a managed portfolio approach with a dedicated PJM subaccount for its energy procurement program.

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      • Since inception of the managed portfolio program (FY 2007) through FY25, ESMEC-ET has avoided $44.0 million in actual supply costs when compared to the weighted average Delmarva Power standard offer rates.
  • Portfolio Results, Forecast, Billing Rates & Working Capital Balances:

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  • Noteworthy:
      • ESMEC-ET FY27 billing rate currently forecasted at $104/MWh, equal to the current billing rate for FY26, and significantly lower than the FY27 budgeted billing rate of $110/MWh (FY27 budget billing rate sent July 2025). Trust to decide/vote on FY27 billing rate.
      • ESMEC-ET recently purchased electricity blocks to get to strategy for FY28-FY29.
      • Summer 2026 System Peak Predictor season begins June 1. This program is becoming increasingly important as capacity rates are the highest on record and expected to stay high over the next four years. kWh shifting / reductions made this summer will reduce capacity costs Jun27-May28.
      • Forward market natural gas is at the lowest levels in the past year for the balance of 2026 and 2027. Low natural gas should yield reasonable spot market rates over this period, absent any major demand events.

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Portfolio Results

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Portfolio Hedge Strategy

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DPL DA ATC LMPs through May 12, 2026

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Billing Rates and Working Capital Position

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Option 1

Recommended

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Option 2

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Appendix

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  • 2027/28 BRA cleared at the price cap agreed upon by FERC and PJM

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  • PJM ran a simulation without the price cap and 2026/27 cleared at $388/MW-day, while 2027/28 cleared at $529.80/MW-day

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  • 2028/29 Base Residual Auction scheduled for June 2026

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  • PJM Board of Managers along with FERC agreed to extend the capacity market cap through 2030

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The average price for National Green-e Wind RECs remains low 2026-2030 ranging between $2.05/REC and $3.00/REC.

Wind RECs continue to trade in contango, meaning that RECs corresponding to further years out are priced at a premium compared to short-term RECs. 

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REC market trends�National Green-e Wind REC prices

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Noel Chesser �Principal Energy Advisor�noel.chesser@enel.com�443-573-1528��

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Eric Meyer �Senior Energy Advisor

eric.meyer@enel.com�443-743-1987��