Delmarva Power is gearing up to make customers aware of changes aimed at allowing an expansion of natural gas service to more small business and residential customers in New Castle County.
“We have seen an uptick in inquiries,” says Bridget Shelton, Delmarva customer advocate, who is heading up the marketing effort for the utility based near Newark. Shelton and Delmarva Power President Gary Stockbridge say it comes after an expensive winter for customers using all types of fuels.
Requests for service have been driven by lower prices and abundant supplies of natural gas from Marcellus Shale deposits in Pennsylvania. That has led large gas users, like DuPont, to seek natural gas service for the Experimental Station near Wilmington, with residential and small commercial users are also taking another look at the fuel.
Delmarva’s request to the Delaware Public Service Commission to make changes to the previous system was approved by the Public Service. In the past, PSC regulations – aimed at making sure that existing customers did not have to foot the bill for new customers – left many unable to obtain service.
With the easing of some of the restrictions and more stable prices reducing shorter payback times for installation of lines and furnaces, natural gas could prove to be an attractive option, utility officials say.
Shelton says 7,500 homes are already in neighborhoods with gas lines running by properties.
Work is also under way to identify lower income households that might qualify for programs that could use natural gas and related equipment to cut heating bills.
Neighborhoods can petition for natural gas service under a process that determines whether it is economically feasible to provide that service without affecting rates of other customers.
Properties that might benefit typically use fuel oil or propane. Both fuels saw price spikes over the winter. Many newer subdivisions in the county use heat pumps. Gains in heat pump efficiency have made utility bills in those communities more competitive with those of natural gas.
Proponents of natural gas point to the added comfort of natural gas during times when heat pumps struggle to deal with low temperatures and growing demand among amateur cooks for gas ranges.
Delmarva has about 124,000 business and residential gas customers in New Castle County. Potentially, another 50,000 customers could be added. The remainder of the state is served by Chesapeake Utilities, Dover, which is expanding its system into new areas. Shelton says a number of customers seek gas service from Delmarva, but do not realize that another utility provides natural gas service in their area.
