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Delmarva Power Seeks Adjustment in Delaware Natural Gas Delivery Rates

Friday, December 07, 2012

Request Supports Reliability, Safety and Improved Future Infrastructure

NEWARK, Del. – Delmarva Power, a subsidiary of Pepco Holdings, Inc., today asked the Delaware Public Service Commission to authorize an adjustment in natural gas delivery rates to bolster the company’s ongoing efforts to maintain safe and reliable service and provide enhanced customer service technology.

If approved, the proposed $12.1 million request would result in a 6.1 percent adjustment on a typical Delaware residential customer’s bill, effective July 2013. The monthly bill for a residential natural gas customer using 120 CCF during heating season would increase by $8.67 per month, from $141.79 to $150.46. The impact on commercial and industrial customers would vary by usage. In addition to the rate adjustment request, Delmarva Power is submitting proposed tariff changes to the Public Service Commission designed to make the choice to use natural gas available to more Delaware residents.

“We have asked for an adjustment in the natural gas delivery rates to recover ongoing costs to improve reliability and safety and to invest in new facilities and equipment,” said Gary Stockbridge, President of Delmarva Power. “We are confident that the necessary upgrades and sound investment in our natural gas delivery system will generate long term customer benefits and allow Delmarva Power to provide continued customer service excellence.”.

Delmarva Power officials said a decision on the rate adjustment request is expected in 2013. The company will, however, implement an interim rate adjustment, effective February 5, 2013, of $2.5 million. The monthly bill impact of the interim rate adjustment is $2.11, from $141.79 to $143.90, or 1.5 percent, for the typical residential customer who uses 120 CCF of natural gas during heating season.

Delivery rates cover the cost of continuing to provide customers with safe and reliable service, investment in new natural gas service technology and improvement in service capabilities to keep pace with growth and increasing demand. These rates are different than supply rates which are adjusted annually for Delmarva Power’s Delaware customers to reflect the cost of natural gas that the company is required to buy on behalf of its customers.

Recently, Delmarva Power filed its annual Gas Cost Rate adjustment (supply) on August 31, 2012 which went into effect with gas usage on November 1, 2012. An adjustment to the gas Environmental Surcharge was filed the same day, also taking effect on November 1, 2012. The combined effect of these two changes resulted in an overall monthly bill decrease of $23.79, or about 14.4% for residential customers who use 120 CCF of natural gas per month during the heating season.

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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 122,000 natural gas delivery customers in northern Delaware .