Starting in November, Delmarva Power is lowering the gas cost rate by 18 percent. It said that it’s its second decrease this year.
Based on this adjusted rate, a residential gas customer, using an average of 56 CCF per month, would see a total monthly bill decrease of $16.30.
The decrease affects just the cost the gas, which Delmarva says is “a direct pass-through cost to customers with no markup and is typically adjusted annually but may be adjusted during the year due to rising or falling market prices.”
The rate is just one of 17 lines on the bill for a residential customer who gets both electricity and gas from Delmarva.
As part of its effort to reduce the impact of increases in the cost of gas, Delmarva Power purchases and stores about half of the natural gas needed to meet winter demand in the summer, when prices are generally lower. “Locking in prices, also known as hedging, seeks to limit the impact of wholesale price volatility that may occur throughout the year,” it said.
Good thing the rate is going down now: The World Bank warns that “a major escalation of the war between Israel and Hamas … could send oil prices surging as much as 75 percent,” the New York Times reports.
So far this year, Delmarva Power has connected financially strapped customers in Delaware with more than $5.3 million in energy assistance.
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