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Delmarva Power Sets Interim Natural Gas Rate Adjustment

Wednesday, February 06, 2013

WILMINGTON, Del. On Dec. 7, 2012, Delmarva Power filed a request with the Delaware Public Service Commission (PSC) to adjust natural gas rates by $12.1 million or 6.1 percent. The rate adjustment will allow the company to continue its ongoing efforts to maintain safe and reliable service and provide enhanced customer service technology through public safety driven projects, including but not limited to pipe rehabilitation and replacement programs throughout the system. The PSC’s final decision is expected in late 2013.

In the interim, the company implemented a temporary rate adjustment, effective Feb. 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 the 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.

On Aug. 31, 2012, Delmarva Power filed its annual Gas Cost Rate adjustment (supply) which went into effect with gas usage on Nov. 1, 2012. An adjustment to the gas Environmental Surcharge was filed the same day, also taking effect on Nov. 1, 2012. The combined effect of these two changes resulted in an overall monthly bill decrease of $23.79, or about 14.4 percent 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 nearly124,000 natural gas delivery customers in northern Delaware .