Chesapeake Utilities granted a $6.1 million natural gas rate increase

Chesapeake customers pay a rate for maintaining the natural gas system and fluctuating prices for natural gas itself. 

For an average residential home heating customer, this will result in an increase of  about $5.37 per month, and for an average residential non-heating customer, an increase of approximately $2.74 per month.

 Chesapeake filed its rate case on August 12, 2024, initially seeking an increase in its revenue of $12.1 million, raising the requested increase to $12.8 million in later filings. Chesapeake’s rate case was its first request to increase base gas rates in nine years. Utilities have been facing rising costs, due to rising costs and higher inflation in some years.

Through the settlement, the amount of the overall rate increase was reduced from Chesapeake’s initial request of $12.1 million to a final settlement of $6.1 million.

 “We know every dollar counts for Delaware families, so we pushed to cut Chesapeake’s original request by half,” said Jameson Tweedie, Delaware Public Advocate. “This agreement keeps monthly fixed charges the same and helps limit the impact on customer bills.”

The settlement also ensures there will be no increases to monthly fixed customer charges or miscellaneous charges by Chesapeake. This settlement is the result of negotiations between the Division of the Public Advocate, staff for the PSC, and Chesapeake and reflects a mutual balancing of various issues and positions, a release stated.

Chesapeake implemented interim rates on May 1,  that match the settlement amount. As a result, Chesapeake customers will not see a change in rates on future bills. The settlement does not resolve a rate design issue that was raised in the case; that will be addressed through a continuing Public Service Commission proceeding.

 Chesapeake serves businesses and consumers in areas south of the Chesapeake and Delaware Canal. Delmarva Power provides natural gas service north of the canal.