Chesapeake Utilities, Dover, announced that customers in its Delaware service territory will see a reduction in the Gas Sales Service Rate (GSR) portion of their natural gas bills this winter.
The proposed reduction will result in a decrease of approximately $46, or 27 percent, for usage of 120 Ccf, the average winter month average for Chesapeake’s residential customers, and which will more than offset the company’s recent application for an adjustment to its delivery service rates.
Rates vary for business and industrial customers.
The overall net savings to a residential customer using 120 Ccf would be $41, assuming temporary delivery rates are approved. Both the GSR reduction and the delivery service rate adjustments are subject to approval by the Delaware Public Service Commission.
The GSR is a pass-through of the cost of the gas purchased for Chesapeake’s customers, and the delivery service rate is based on the cost of delivering the gas to the customer. The reduced GSR is the result of lower market costs for natural gas while the proposed increase to the delivery service rates is the result of rising operating costs since Chesapeake’s delivery rates were last adjusted, the utility noted.
“Chesapeake has not adjusted its delivery service rates in Delaware since 2007 when rates were increased less than 1 percent,” said Jim Moore, vice president of Chesapeake Utilities Corporation. “Thanks to the reduction in the cost of natural gas, our residential customers will be paying less for their gas service.”
The utility serves many communities in the state and the Delmarva Peninsula including Middletown and Dover. The company has been expanding its service, due to demand for natural gas, which has become more competitive with other fuels.
Most of northern New Castle County receives service from Delmarva Power, while portions of neighboring Cecil County, MD are now served by Chesapeake Elkton Gas provides natural gas service to the Cecil county seat.
