Chesapeake, Delmarva file for double-digit natural gas rate hikes

Delmarva filed to increase its “gas cost rate” (“GCR”) by about  43% while Chesapeake filed to increase its annual “gas sales service rate” (“GSR”) by about 30%.

 Delmarva estimates that customers will see an overall increase of $11.33 a month or 13%, since the GCR is only one portion  of a customer’s bill. Chesapeake estimates that customer bills will increase by $16.51 a  month or 18.6% for a typical customer.

Both Delmarva and Chesapeake requested that the respective rates become effective on November 1, 2025, subject to a final order by the commission.

“This is a dramatic increase that will make utility bills more expensive for both Delmarva and Chesapeake customers,” said Jameson Tweedie, Delaware Public Advocate. “My office will carefully review both corporations’ applications to ensure customers are not overcharged, but because the GCR and GSR are pass-through costs, there is limited ability to challenge these increases.”

Delmarva and Chesapeake charge their customers to recover their natural gas supply costs each year, based on a 12-month   period from November 1^st through October 31^st.

Through the pass throughs,  Delmarva and Chesapeake recover their costs for natural gas purchases, transportation, demand, storage, capacity charges, and hedging costs. Delmarva and Chesapeake do not earn a return on these costs. 

Delmarva serves approximately 140,000 natural gas customers in New Castle County. Chesapeake serves approximately 77,000 natural gas customers in Delaware.

The pass through  is separate from Delmarva’s gas base rates, but both the GCR and gas base rates contribute to the total bill paid by customers. In September 2024, Delmarva also filed a request seeking an increase of $42  million in base rates, which Delmarva estimated would increase the monthly bill of a typical residential customer using 33 ccf per month by $13.06 or 23.2%. DPA opposes Delmarva’s request, which is still pending before the Commission.

 The GSR is separate from Chesapeake’s gas base rates, but both the GSR and gas base rates contribute to the total bill paid by customers. In August 2024, Chesapeake also filed a request seeking an increase of $12.1 million in base rates. DPA opposed this rate increase, and Chesapeake’s gas base rate increase request was resolved via a settlement, approved by the Commission in June 2025, allowing an increase of only $6.1 million (approximately $6 million less than Chesapeake’s original request).