Delmarva Power is seeking a 6.5 rate increase in its natural gas delivery rates in northern New Castle County.
The increase would amount to about $6 a month for the typical customer’s winter bill.
Delmarva cited the costs for work done over the past two years to modernize its system.
The work includes replacing existing cast iron natural gas mains and service lines with new plastic pipe. The plastic pipe improves safety, durability and reliability.
Recent work is also adding capacity to the natural gas delivery system.
The system saw record demand in 2018. 2019 turned out to be a warmer year.
Demand for natural gas has been increasing among residential and commercial customers as supplies remain ample due to Marcellus discoveries in neighboring Pennsylvania
The delivery charge is separate from the cost of the natural gas itself. Delmarva buys those supplies and passes on the cost without a mark-up.
Natural gas customers are added in cases where neighborhoods seek the service. The cost of additional hook-ups is not borne by existing customers.
Delmarva Power’s territory is above the Chesapeake and Delaware Canal in New Castle County.