Delmarva Power and Chesapeake Utilities Increasing Gas Rates, Raising Bills

DELAWARE – Delmarva Power & Light and Chesapeake Utilities Corporation have filed with the Delaware Public Service Commission to increase natural gas rates, subsequently raising customer bills.

The rates reflect Delmarva Power’s and Chesapeake Utilities’ cost of purchasing natural gas and other incurred costs, which are then passed through to customers.

According to the Delaware Division of the Public Advocate, Delmarva Power filed to increase its “gas cost rate” (GCR) by 43 percent on Aug. 28. The company estimates that customers will see an overall increase of $11.33 per month, or 13 percent. These changes will impact nearly 140,000 customers receiving natural gas from Delmarva Power in northern Delaware.

The same report indicates Chesapeake Utilities filed to increase their “gas sales service rate” (GSR) by 30 percent. The company estimates that customer bills will increase by $16.51 per month, or 18.6 percent for the typical customer. These changes will impact over 77,000 customers receiving natural gas from Chesapeake Utilities across the state.

“This is a dramatic increase that will make utility bills more expensive for both Delmarva and Chesapeake customers,” said Jameson Tweedie, Delaware Public Advocate. “My office will carefully review both corporations’ applications to ensure customers are not overcharged, but because the GCR and GSR are pass through costs, there is limited ability to challenge these increases.”

Both Delmarva Power and Chesapeake Utilities requested that the respective rates become effective on Nov. 1, subject to a final order by the Commission.

To view the report in its entirety, click here.