Delmarva Power adjusts natural gas delivery rates to fund system improvements

Credit to: Coastal Point

Delmarva Power recently announced that it is “reaffirming its commitment to further improve the experience for its natural gas customers across northern Delaware, expanding efforts to connect customers with programs and services that help manage rising energy supply costs while delivering the reliable service customers have come to expect.”

The company said it is continuing to “balance affordability with the critical investments needed to deliver safe, reliable natural gas to local homes and businesses.”

To support these investments, representatives said, Delmarva Power is adjusting natural gas delivery rates following an approved settlement that received stakeholder review and offered opportunities for community input. The effort, they said, supports investments focused on enhancing the safety and reliability of the local natural gas system, improving the customer experience and saving customers an estimated $1.85 million in energy supply costs through updates at the company’s liquified natural gas facility.

“We know any rate change can be difficult for our customers, which is why we focused on achieving a settlement that balances affordability with the investments needed to keep natural gas service safe and reliable for our customers,” said Marcus Beal, Delmarva Power region president.

“We are committed to being a strong community partner — listening to customer feedback, making thoughtful and prudent investments in our system that will have long-term impact, and expanding the support we provide for customers who need help with their bills. Every decision we make reflects both the needs of our customers today, and the safety and resiliency of the natural gas system they depend on for years to come.”

Delmarva Power, representatives said, “is committed to expanding resources for customers who may be struggling with rising energy supply costs. These efforts include expanding the company’s work to connect customers with vital state and federal support programs while expanding the company’s community-focused resource events like the one held recently at The Resurrection Center in Wilmington.”

“Many households across northern Delaware are feeling the strain of higher living costs, and access to safe, reliable energy remains a basic necessity,” said First State Community Action Agency Executive Director Bernice Edwards. “Delmarva Power’s work to modernize its natural gas system — while expanding outreach and support for customers who need help — reflects a real commitment to equity. From their infrastructure improvements to their partnerships on energy assistance programs, the company is taking meaningful steps to support communities that are often most vulnerable to rising costs.”

Delmarva Power’s efforts to modernize the local natural gas delivery system have improved safety and reliability for customers across northern Delaware, they noted, saying that thanks to ongoing natural gas pipeline replacement work, customers experienced 22 percent less natural gas leaks in 2024, compared to the previous three-year average, and a nearly 48 percent reduction in service interruptions, compared to 2023. Key projects that contributed to these improvements include:

• Liquified natural gas (LNG) facility upgrades. Modernized systems were installed at the Wilmington LNG Plant to meet the growing energy needs of the community while allowing Delmarva Power to purchase and store gas year-round and manage customer costs.

The upgrades prevent the natural gas from freezing in cold temperatures and allows the company to refill the tank, even in winter cold, while boosting customer reliability.

“These systems help ensure service remains reliable for all customers during the most critical times of the year,” they said.

The new systems are also estimated to save customers $1.85 million per year in natural gas supply costs.

• Cast-iron replacement project. Each year, the company makes the local natural gas system safer by replacing more than 8 miles of natural gas mains with new plastic pipe, which enhances safety, is more durable and improves reliability, they noted.

The comprehensive modernization work began in 2006 and is slated for completion in 2027, five years ahead of schedule. Each year, approximately $25 million of Delmarva Power’s capital budget is dedicated to the retirement or replacement of cast-iron and bare-steel natural gas main and service lines.

The projects are part of a broader strategy, representatives said, to make the natural gas system smarter, stronger and cleaner, supporting customer expectations for safe and reliable service.

Based on the approved settlement, gas delivery rates for the typical residential customer using 56 CCF per month will increase by $2, or 3 percent, per month beginning Jan. 1, 2026. Gas delivery rates were already adjusted by $8 per month for the typical residential customer when interim rates were implemented in April 2025 as part of this rate review.

“Recognizing that any rate change can be challenging, Delmarva Power remains committed to helping customers manage their energy use and lower their bills,” they added.

In partnership with community organizations and local agencies, customers can access support, including:

• Energy assistance and relief programs, such as the $4.5 million Delmarva Power Customer Relief Fund, a one-time support program funded through a charitable contribution from Exelon and administered by the Delaware Sustainable Energy Utility (SEU). Eligible limited- to moderate-income residential customers can receive a one-time grant of up to $300, applied directly to their Delmarva Power bill, to help manage past-due balances and high energy costs.

As part of the program, customers also participate in the Energize Delaware Home Energy Checkup & Counseling (HEC2) program, which provides personalized guidance to help reduce energy use and lower bills over time. Assistance is available for qualifying electric and natural gas customers across the Delmarva Power service area.

• Budget Billing, which averages annual energy costs for more predictable monthly payments.

• My Account contains tools and detailed energy usage information that allows customers to track energy use, compare usage trends and discover the results of energy-saving practices.

• The Assistance Finder tool, which connects customers to local, state and federal programs, and Single Stop which helps customers access additional benefits, such as housing, healthcare and childcare.

The company continues to host community engagement events where customers can connect directly with energy advisors for one-on-one support. Information on these events and assistance options is available at delmarva.com/BillSupport.