For Immediate Release
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. This
represents the fourth straight year of gas cost reductions for Delmarva Power
Delmarva Power filed 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 or after Nov. 1 with proration.
The decrease associated with these two
changes (GCR decrease and ESR increase) will result in an overall monthly bill
decrease of $10.17 or about 7.3 percent for residential customers who use 120
CCF of natural gas per month during the heating season. This will reduce the
average residential bill from $139.33 to
$126.16. The savings will vary
based on customer usage.
The proposed rate decrease is a result
of lower market costs for the gas. The gas cost rate is a dollar-for-dollar
pass-through to customers for the gas Delmarva Power buys for its customers.
The utility is permitted to recover its costs for buying the gas but not to
earn a profit on the sale. The request was included in the company's annual gas
cost rate filing.
industrial customers' rates also would decrease in the range from 3.5 percent
to 12.8 percent. 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.