For Immediate Release
Proposed $3.6 million gas rate reduction would take effect March 1
NEWARK , Del. - Delmarva Power filed a request Monday with the Delaware Public Service Commission to lower its natural gas rates for the Company's residential, commercial and industrial natural gas customers in New Castle County.
The primary reason for the decrease is that projected gas commodity prices for the period through October 2009 are estimated to be lower than those reflected in the current rate, which is adjusted annually on Nov. 1.
This interim adjustment would decrease the amount Delmarva Power's customers pay by about $3.6 million.
"Because these costs are passed directly on to our customers, we are able to pass through this decrease in natural gas prices to them as well," said Delmarva Power Region President Gary Stockbridge.
Gas commodity prices affect the Gas Cost Rate (GCR) component of a customer's bill. This component reflects the changing market prices that the Company must pay to secure a reliable supply of natural gas for its customers. Delmarva Power does not make a profit from the GCR.
If approved, the decrease would go into effect with usage on and after March 1, 2009. The proposal would lower the Gas Cost Rate from $1.18 per ccf (hundred cubic feet) to $1.10 per ccf. For a residential customer who uses 120 ccf of gas per month in the winter, the bill would decrease by 4.8% or $9.30 a month, from $195.62 a month to $186.32. The impact on commercial and industrial customers will vary depending on usage.
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 .