Last week, a friend brought me two room leases and asked for my opinion. One had a slightly lower rent but charged separately for electricity, while the other was a bit more expensive but included utilities.

Honestly, I faced the same dilemma when I first moved in. So this time, I did some proper calculations.

To cut to the chase, this winter, it's essential to calculate before making a choice. Electricity rates are not the same as last year.

Q. How much have electricity rates increased?

According to Delmarva Power, starting from June 1, 2026, the standard supply rate for residential customers has increased. The winter rate rose from $0.094804 per kWh to $0.114049 per kWh, which is about a 20% increase.

One thing to note here: this is the supply rate for purchasing electricity, and delivery charges are separate.

Delmarva states that for an average household using about 811 kWh per month, the bill will increase by approximately $14.64, or about 9.34%. Since a studio apartment often uses less than this, you shouldn't directly apply this number to your bill; you need to adjust it based on your actual usage.

Also, this rate is temporarily approved by the Public Service Commission (PSC), so if the final decision changes later, you will receive a refund with interest.

What's even more surprising is the long-term trend. According to the Delaware Public Advocate, the residential winter supply rate has increased by 92.4% compared to 2021. Almost doubling in five years seems excessive.

But that's not all. Delmarva has also applied for a base rate increase of $67.8 million in January 2026, and the temporary rate was set to take effect on July 9. The final decision will depend on the PSC's judgment.

The reason for the rate increase is primarily due to rising wholesale electricity supply costs. Fortunately, the burden from renewable energy fees has decreased somewhat, but that doesn't provide much relief.

Q. Is everyone in our area served by Delmarva?

This is a point that can be quite confusing. The city of Newark is a member of the Delaware Municipal Electric Corporation (DEMEC), so there are areas where the city directly supplies electricity.

So even in the same college area, the rate can differ depending on whether your studio is served by the city or Delmarva. Before signing a lease, make sure to ask the landlord or management office for the name of the electric company. Just knowing this can make calculations much easier.

If you're in a city electric area, the best way to confirm the latest rates is to check newarkde.gov or call the city utility department. The numbers you find online can vary from site to site, so it's hard to trust them completely.

Q. So is renting with utilities included a better deal?

To put it in food terms, renting with utilities included is like a buffet, while separate utilities are like ordering à la carte.

For someone who consumes a lot, a buffet is a great deal. Conversely, if someone who eats little goes to a buffet, they end up losing out.

If you have an older studio that uses electric heating and has drafts coming through the windows, your winter usage will significantly increase. In such cases, renting with utilities included is likely more advantageous.

On the other hand, if you have gas heating or a well-insulated new building, the situation changes. Since you'll use less electricity, separate utilities might be cheaper.

The calculation method is simple. Find the difference between the rent with utilities included and the separate rent, and compare it to the winter electricity bill for that unit.

For example, if the difference is $60 per month and the winter electricity bill for that unit is less than that, then separate utilities would be better. Over a year, you also need to consider that summer bills will be lower, so average it out.

Q. How do I find out the electricity bill for that unit?

This is more important than you might think. Even for studios of the same size, winter bills can vary significantly based on windows, heating methods, and floor levels.

The best approach is to ask the previous tenant to show you their actual bill. If the landlord doesn't know, you can inquire with the electric company about the average usage for that address.

Renting with utilities included also has its pitfalls. There may be a usage cap in the lease, and if you exceed it, you could face additional charges. Be sure to read the terms carefully.

Additionally, if you have roommates, renting with utilities included can help maintain peace. There won't be arguments over who turned the heater up more or who used the hairdryer longer. This structure can play a surprisingly significant role when people with different lifestyles live together.

There are also basic tips for reducing winter electricity bills. Using insulation film on windows, draft stoppers on doors, turning off heaters in unused rooms, and slightly lowering the hot water temperature can all help reduce usage. None of these are costly.

If it were me, I would go for a rent with no cap on utilities if the insulation is questionable, and for a new building, I would choose separate utilities with a smart thermostat.

During times when rates are rising like this, just looking at the rent numbers can lead to real losses when choosing a place. Make sure to do the math at least once before winter sets in.