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For Immediate Release


Delmarva Power Natural Gas Supply Rate Decreases

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. This represents the fourth straight year of gas cost reductions for Delmarva Power customers.

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.

Commercial and 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 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. 

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