Delmarva said that the proposed rate will increase the monthly bill of a residential customer by $6.99, or 8.1% of the total annual bill.
The company’s $11.9m request reflects rising capital investment costs required to continue to provide its northern Delaware customers with safe and reliable gas delivery service. The delivery rates are separate from the fuel (supply) rate.
Delmarva Power had last filed for an increase in its gas delivery rates in 2006. The company delivers natural gas to approximately 123,000 homes and businesses in northern New Castle County, Delaware.
Gary Stockbridge, president of Delmarva Power, said: “We understand these are difficult economic times and will continue to do all we can to control our costs and work with those customers who are in need of energy assistance and a flexible payment arrangement.”
Delmarva Power officials said a decision on the rate increase request is expected by February 2011. The company will, however, implement an interim rate increase, effective August 31, 2010 and subject to refund of $2.5m in additional revenue.
The monthly bill impact of the interim rate increase is $2.06, from $167.25 to $169.31, or 1.23%, for the typical residential customer who uses 120ccf of natural gas during a winter month.
