For Immediate Release
Monthly Bills Would Drop About 14 Percent
WILMINGTON, Del . - Delmarva Power has asked state regulators to reduce the rate it charges customers for natural gas. Under the proposal, the monthly bill for a Delmarva Power residential gas customer that uses 120 centi-cubic feet (ccf) per month would drop $23.79 per month, or 14.4 percent. The monthly bill would decrease from $165.61 to $141.82. The adjustment is scheduled to take effect Nov. 1.
The proposed rate decrease is a result of lower market costs for the gas. This represents the second straight year of gas cost reductions for Delmarva Power customers. In November 2011, there was a reduction of $6.29 per month, or 3.7 percent, for a residential customer using 120 ccf per month.
The gas cost rate is a dollar-for-dollar pass-through to the customer for the gas Delmarva Power buys for its customers. The utility is permitted to recover its costs for buying the gas, but not earn a profit on the sale. The request was included in the company's annual gas cost rate filing.
Commercial and industrial customers' rates also would decrease. The monthly bill impact among those customers varies with usage. The rate changes are subject to review and approval by the Delaware Public Service Commission (PSC).
The natural gas market is subject to sudden and sharp price spikes and dips. The company files each year at this time to reflect the changing cost of the commodity. Delmarva Power's purchasing, which is overseen by the PSC and includes the cost of natural gas as well as its transportation to the region, seeks to minimize the impact that severe price swings can have on customers.
Delmarva Power encourages customers to visit www.delmarva.com for information on saving energy and money in their home or business. The company also offers customers Budget Billing, a fixed payment plan based on the customer's 12-month average bill. Customers can enroll online or by calling 1-800-375-7117.
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 124,000 natural gas delivery customers in northern Delaware.