Delmarva Power Files Annual Natural Gas Cost Rate Adjustment
Friday, August 29, 2008
WILMINGTON , Del . – Higher wholesale natural gas prices have resulted in Delmarva Power filing for an increase in its annual gas cost rate adjustment. The proposed 14.8 percent increase in the typical residential customer’s monthly heating bill follows two years of decreases for the company’s natural gas customers. While global supply uncertainty and worldwide growth in demand continue to keep prices above last year, the recent decline in wholesale energy prices did lessen the impact of this winter’s gas rate adjustment.
The gas cost rate reflects the price Delmarva Power pays to purchase the fuel for its customers. Delmarva Power purchases natural gas for its customers from the wholesale market and passes the costs through to its natural gas customers without adding any profit. These costs appear in the “supply charges” section of the monthly bill. The delivery portion of the bill, which covers the cost of bringing the fuel to homes and businesses, remains unchanged.
The proposed increase in the gas cost rate portion of the bill is from 96.571 ¢ to 117.560 ¢ per centi-cubic foot (ccf is the unit used to measure residential usage). In addition to the gas cost rate adjustment, Delmarva Power also filed a reduction in the natural gas Environmental Surcharge. The combined effect of the two rate changes is a total bill increase of $25.17 for a typical household using 120 ccf in a winter month, taking the bill from $170.37 to $195.54. The rate increase for commercial and industrial customers, as a percent of their total bill, ranges from less than one percent up to 22.3 percent, depending on load and usage characteristics.
The rate changes, which will affect the company’s approximate 121,000 gas customers in northern New Castle County, will take effect November 1 and are subject to the approval of the Public Service Commission.
To learn more about mitigating the impact of rising energy prices, customers can visit Delmarva Power’s Web site, www.delmarva.com , and click “Manage Your Winter Energy Costs.” From there, customers can use the free online energy audit tool to learn how to save energy and money in their home. Customers can also enroll in the company’s Budget Billing program online or by contacting Customer Care at 800-375-7117. Frequently Asked Questions.
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Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric and natural gas delivery services to nearly 500,000 customers in Delaware and Maryland.