Delaware residents who rely on natural gas for home heating and other purposes are facing a rate hike, the first of its kind in nearly a decade, after a decision made by the Delaware Public Service Commission (PSC) on June 18. According to the Delaware government press release, Chesapeake Utilities Corporation's base gas rates will rise by 6% for residential heating customers and by 6.5% for non-heating customers following the Commission's approval of the settlement.
This adjustment will result in an additional $5.37 per month for the average residential home heating customer and a $2.74 increase for the average non-heating residential customer. The company initially requested a $12.1 million revenue increase, which was later revised to $12.8 million. Following negotiations, the final approved increase was set at $6.1 million.
Chesapeake's rate case, filed on August 12, 2024, marked the end of nine years without a base rate adjustment for gas. The negotiation process reduced the originally proposed increase, resulting in a lower final rate adjustment than initially requested.
The recent gas rate increase reflects a negotiated settlement allowing Chesapeake to recover a portion of its operating costs associated with delivering gas to homes and businesses. The rate change may lead to higher monthly bills for customers. Additional information on the rate adjustment and its implications can be found in the official government announcement.
