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Delmarva Power to Adjust Gas Delivery Rates in New Castle County

Thursday, January 27, 2011

Residential Natural Gas Bills to Increase by 3.72 Percent, Effective Feb. 2

WILMINGTON , Del. – Delmarva Power will implement its gas delivery rate increase request, effective Feb. 2, 2011. This adjustment is subject to potential refund with interest after the Delaware Public Service Commission concludes its review.

The total bill impact of this rate increase on a residential natural gas heating customer with average usage during a winter month is about $6.30, from $169.28 to $175.58, or 3.72 percent. During non-heating months, the monthly increase would be about $2.09, from $37.49 to $39.58, for the typical residential customer. The impact on larger commercial and industrial customers will vary by usage.

Delmarva Power filed for the gas delivery rate increase in July 2010. According to Delaware law, a utility is permitted to put the requested rate increase into effect seven months after its filing date. This rate increase is subject to refund to customers, with interest, if the Commission’s final approval of gas delivery rates is less than the rates implemented by Delmarva Power.

The delivery rates, which represent about 35 percent of a customer’s bill, are separate from the supply rate, which makes up about 65 percent of the total bill. Delivery rates reflect the costs of providing the gas infrastructure (such as pipes, storage facilities, etc.), employees and services necessary to move gas through the local distribution system to customers. The company said the $10.1 million additional revenue request reflects rising cost of operations, maintenance and capital investment required to continue to provide its northern Delaware gas customers with safe and reliable service. Delmarva Power delivers natural gas to approximately 123,000 homes and businesses in New Castle County, Delaware.

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Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to more than 500,000 electric delivery customers in Delaware and Maryland and over 121,000 natural gas delivery customers in northern Delaware.