Delmarva Power Files to Reduce Natural Gas Rates
Monday, August 31, 2009
Residential bills to decrease an estimated 10 percent
NEWARK, Del. – Delmarva Power, for the second time this year, has filed a request to lower natural gas rates for its residential, commercial and industrial customers in New Castle County, Del. The proposed rate decrease, filed Monday with the Delaware Public Service Commission, is attributed to lower gas commodity prices driven by lower consumer demand and record-high supply levels.
Under the proposed rate adjustment, a typical residential customer who uses roughly 120 ccf (centi-cubic feet) of natural gas per month during the heating season would see a total bill decrease of 10.2 percent, or $19.02 per month, from $186.32 to $167.30. The impact on commercial and industrial natural gas customers would vary according to usage, with most of those customers seeing overall bills fall anywhere from 6 percent to as much as 16 percent.
The proposed decrease would take effect Nov. 1, pending the Commission’s approval. It would be the second decrease in natural gas rates this year for Delmarva Power’s customers. In March, rates decreased by 4.8 percent for the typical residential customer due to lower gas commodity prices. The current request to decrease rates is part of Delmarva’s annual Gas Cost Rate (GCR) filing.
“The declining price of natural gas is good news for our customers, particularly during these tough economic times,” said Delmarva Power Region President Gary Stockbridge. “This proposed decrease, coupled with an earlier decrease in the spring, should bring down utility bills this winter for those customers who use natural gas to heat their homes and water heaters as well as operate stoves and other appliances.”
Gas commodity prices affect the supply portion of a customer’s bill, which reflects the costs the company incurs when it buys natural gas on the wholesale market on behalf of its customers. The company passes these costs to its customers without making any profit.
Delmarva Power encourages its customers to visit its Web site, www.delmarva.com, for information on saving energy and money. The company also offers its customers Budget Billing, a fixed payment plan based on the customer’s 12-month average bill, which they can enroll in either online or by contacting Delmarva Power Customer Care at 800-375-7117.
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to nearly 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware.