For Immediate Release
NEWARK, Del. Delmarva Power today filed two gas rate changes with the Delaware Public Service Commission that will result in an overall decrease in rates for natural gas customers this winter. Delmarva Power filed on Wednesday its annual applications for the Gas Cost Rate (GCR) and the Environmental Surcharge Rate (ESR). Both of these proposed rates will take effect with usage on and after Nov. 1 with proration.
The combined effect of these two changes (GCR decrease and ESR increase) will result in an overall monthly bill decrease of $8.18 or about 5.4 percent for typical residential customers who use 120 CCF of natural gas per month during the heating season. This will reduce the bill from $150.67 to $ 142.49.
Delmarva Power's natural gas supply rates will decrease for customers this year. Wholesale prices have increased slightly, however supply costs other than the commodity costs are lower therefore resulting in the GCR decrease. This represents the third straight year of gas cost reductions for Delmarva Power customers. In November 2012, there was a reduction of $23.79 per month, or 14.4 percent, for a residential customer using 120 ccf per month.
Delmarva Power purchases gas on behalf of its customers and sets rates according to what it paid for the gas. This is a direct cost pass through with no profit margin for Delmarva Power. 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 will vary with usage. The rate changes are subject to the PSC's review and approval.
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.
About Delmarva Power: 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.