The party also announced it will have 71 manifestos for the Assembly elections -- one main and one each for 70 constituencies.
After Dikshit's office accepted to receive the letters, AAP decided to call off their march but gathered at Jantar Mantar. The Arvind Kejriwal-led party had earlier threatened to go ahead with the march if Dikshit refused to receive the letters.
AAP leaders said they have attained their "first victory" when they got a call this morning and the Chief Minister agreed to receive the protest letters written by 10.5 lakh Delhiites.
The letters were handed over at Dikshit's residence in the afternoon by a delegation led by Kumar Vishwas, Sanjay Singh and Manish Sisodia.
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Kejriwal said the protest would not cease until the prices of power and water are reduced.
He also announced that on May 19 the party would gherao the local MLAs irrespective of the party they belong.
"People would go to the houses of their local MLAs and ask them what were they doing when prices of water and electricity were being unfairly hiked," Kejriwal said.