DOVER, Del. (Oct. 3, 2025) — Delaware utility customers could see significant increases in natural gas bills after Delmarva Power & Light and Chesapeake Utilities Corporation filed requests with the Delaware Public Service Commission to raise rates. Delmarva seeks to increase its gas cost rate by about 43 percent, which the company estimates would raise the typical customer’s monthly bill by $11.33, or 13 percent. Chesapeake is requesting a roughly 30 percent increase in its annual gas sales service rate, projected to raise bills by $16.51 per month, or 18.6 percent, for most customers. Both companies requested that the respective rates become effective on November 1, 2025, pending the Commission’s final order.
The proposed increases cover the costs of purchasing and transporting natural gas, including storage, capacity, and hedging, through the gas cost rate for Delmarva and the gas sales service rate for Chesapeake. Neither company earns a profit on these pass-through costs, and any refunds from suppliers are credited back to customers. “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 serves approximately 140,000 natural gas customers in New Castle County. Chesapeake serves about 77,000 customers statewide. Both companies are required to file annual estimates for these rates and reconcile any over- or under-recoveries from the previous year.
The GCR is separate from Delmarva’s gas base rates, but both contribute to a customer’s total bill. In September 2024, Delmarva filed a separate request seeking a $42 million increase in base rates, which it estimated would raise the monthly bill of a typical residential customer using 33 ccf per month by $13.06, or 23.2 percent. That request is still pending before the Commission.
Chesapeake’s GSR is separate from its base rates, which also contribute to the total bill. In August 2024, Chesapeake filed a request for a $12.1 million base rate increase. That request was opposed by the Public Advocate and later resolved via a settlement, approved by the Commission in June 2025, allowing an increase of $6.1 million, approximately $6 million less than originally requested. Applications for the new gas cost and sales service rates are under review by the Delaware Public Service Commission. Filings, documents, and official notices are maintained by the Commission for public record.
