Delmarva Power is lowering its charges for gas customers by 18 percent from the current rate, beginning in November due to natural gas price decreases.
Based on this adjusted rate, a residential gas customer, using an average of 56 CCF per month, would see a total monthly bill decrease of $16.30.
Delmarva Power applied for approval from the Delaware Public Service Commission to lower its supply charges for gas customers in August.
The natural gas supply charge, also known as the Gas Cost Rate, is a direct pass-through cost to customers with no markup and is typically adjusted annually but may be adjusted during the year due to rising or falling market prices. Delmarva makes its profits through service charges for maintaining its natural gas system in northern New Castle County.
“We know cost is top of mind for our customers and this adjusted rate ahead of the winter months can make a difference for the customers we serve,” said Doug Mokoid, Delmarva Power region president. “We are thrilled to be able to offer this second reduction within months. Our efforts to maintain affordability will always be at the forefront of all we do at Delmarva Power.”
As part of the effort to reduce the impact of gas price volatility, Delmarva Power purchases and stores about half of the natural gas needed to meet winter demand in the summer months when prices are generally lower. Locking in prices, also known as hedging, seeks to limit the impact of wholesale price changes that may occur.