Warm winter, lower prices trigger Delmarva natural gas rate cut


The Delaware Public Service Commission approved a 23% decrease in Delmarva Power’s natural gas costs, effective April 1st.

Late last month, Delmarva Power filed an application to amend its Gas Cost Rate due to a warmer-than-expected winter and lower-than-expected natural gas prices over the past several months. The rate represents the total purchased gas cost for natural gas service. Providing the service is a separate expense and goes up with inflation.

Delmarva Power supplies natural gas north of the C&D Canal, with Chesapeake Utilities supplyiing the remainder of the state.

An average residential gas customer will see a $5.41 decrease in their bills for use on and after April 1st.

Natural gas prices spiked over concerns about a cutoff of gas supplies to Europe by Russia following the invasion of Ukraine. Europe also had a warmer winter and found alternate sources, such as liquid natural gas.


“We realize customers have seen higher utility bills over the winter as natural gas costs increased last year. We’re pleased that the Commission took this action and that we’re able to tell customers that a modest amount of relief is on the way,” said Matt Hartigan, executive director of the Public Service Commission. December bills were affected by a short burst of nearly record cold weather.

The commission approves natural gas commodity costs on an annual basis, usually every November. The rates can be adjusted throughout the year to ensure that regulated utilities are not over or under-collecting the amount allowed by the Commission.

For energy saving tips, contact:

Low-income Delawareans who are in need of financial assistance to meet their home energy costs may be eligible for the Low-Income Home Energy Assistance Program (LIHEAP), a program administered jointly by the Delaware Division of State Service Centers (DSCC) and Catholic Charities, Inc. Eligible households can apply to receive grants to help pay for fuel assistance for home heating, which includes electricity, natural gas, kerosene, propane, coal, or wood. Grants are made to both homeowners and renters.

Crisis assistance funding is available to help households in crisis during the winter months. Income eligibility for LIHEAP is defined as 200% of the federal poverty level. For more information on LIHEAP or to apply, click here.

TheDelaware Public Service Commissionwas established to provide oversight of investor-owned public utilities in the State of Delaware. The Commission works to ensure safe, reliable, and reasonably priced electric, natural gas, water, and wastewater services. The Commission also has limited regulatory authority over telephone and cable television rates and services.