Delmarva Power filed for gas rate changes with the Delaware Public Service Commission that if approved will result in a 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. Business rates will depend on usage and other factors.
For residential customers, 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 during the heating season. This will reduce the bill from $150.67 to $142.49.
Wholesale natural gas rates have risen slightly from historic lows, however supply costs other than the commodity costs are lower.
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.
The rate request is filed this time of year to reflect the ups and downs of natural gas prices and to minimize severe price swings. Prices have been down, due to new supply from Marcellus Shale deposits in Pennsylvania
