Delaware Public
Service Commission

Natural Gas Regulation

Table of Content

Role of the Commission
Regulated Utilities
Consumer Information
Important or Pending Cases at the Commission
Local, Regional, and National Issues
Natural Gas Regulation Archives

Role of the Commission

The Delaware Public Service Commission regulates only the distribution of natural gas to Delaware consumers. The delivery and administrative costs associated with natural gas distribution are determined in base rate proceedings before the Commission. The recovery of costs associated with the natural gas used by customers is determined annually as part of fuel adjustment proceedings. As a result of this process, rates for natural gas will typically change at least once a year. Fuel adjustment rates for natural gas may also change during the annual recovery period when the projected recovery of gas costs exceeds limits set for the over or under-collection of gas costs. Occasionally, natural gas distribution companies are permitted by their tariff to collect additional fees, often called ‘riders’, to recover unanticipated or extraordinary expenses. For instance, both regulated natural gas distribution companies have an ‘environmental rate rider’ to recover costs associated with the clean up of pollution from old manufactured gas sites. These rider rates are determined in separate proceedings before the Commission.

The Commission does not regulate the costs charged by propane gas providers: questions related to propane costs should be directed to the specific provider. The Commission does administer the Natural Gas Pipeline Safety Program for the U.S. Department of Transportation’s Office of Pipeline and Hazardous Materials Safety Administration Opens in new window which relates to the operation of both propane and natural gas distribution systems.

Regulated Utilities

Consumer Information

For general consumer information, including how to file a formal complaint, please visit our Consumer Assistance page.
Delaware Public Service Commission Frequently Asked Questions (FAQs)
Both Chesapeake Utilities Corporation and Delmarva Power Opens in new window provide important customer information on billing, customer service issues, and safety.
https://depsc.delaware.gov/customer-assistance/The following websites offer important consumer information about natural gas issues, including energy conservation, energy and the environment, green energy, and others:
- Delaware Division of Energy and Climate
- Federal Energy Regulatory Commission (FERC)
- Energy Information Administration (EIA)
- Naturalgas.org Opens in new window (this site has been developed and is maintained by the Natural Gas Supply Association)

Important or Pending Cases

A complete list of all natural gas related cases filed with the Commission is available on the Commission’s Regulated Utility Filings. Cases filed after July 7, 2014 are available through the DelaFile E-filing system Opens in new window page.

Following is a list of cases that have, or are likely to, generate a significant amount of public interest. To assist the public with participation in these matters, summaries with docket numbers are provided below along with a link to our Delafile system for related documents.

PSC Docket No. 24-1044 DELMARVA POWER & LIGHT COMPANY NATURAL GAS BASE RATES – On September 20, 2024, Delmarva Power & Light Company (“Delmarva”) filed an application seeking approval for an increase in its natural gas base rates and limited changes to its natural gas tariff. Delmarva’s proposed $42.0 million increase to natural gas base rates includes $6.4 million revenues from its existing Distribution System Improvement Charge (“DSIC”). The application can be viewed in DelaFile

Docket No. 24-0906 Chesapeake Utilities Corporation Natural Gas Base Rates Case-On August 12, 2024, the Delaware Division of Chesapeake Utilities Corporation (“Chesapeake” or the “Company) filed with the Commission an application seeking approval of: (1) an increase in its natural gas base rates of $12,117,293, which is 15.4% of total operating revenues; (2) a transfer into base distribution rates of $996,660 of revenues currently recovered through the Distribution System Improvement Charge (“DSIC”); (3) two new Miscellaneous Service Charges; (4) a restructuring of its rate schedules; (5) certain modifications to its transportation program; (6) implementation of a weather normalization mechanism for residential and small commercial customers; (7) a name change to Chesapeake Utilities of Delaware, Inc., following completion of an internal corporate reorganization; and (8) other tariff changes to its tariff as described in the Application, which can be viewed in DelaFile.

All case related documents are available for review by appointment at the Commission Office in Dover, Delaware.

Chesapeake Utilities Corporation – Delaware Division

PSC Docket No. 12-292 Opens in new window – (Filed June 25, 2012), Archived

PSC Docket No. 13-383 Opens in new window – (Filed October 1, 2013), Archived

Delmarva Power & Light

PSC Docket No. 12-546 – (filed December 7, 2012), Archived

On December 21, 2010 Order No. 7882 was approved by the Commission. The order grants Delmarva Power & Light Company’s Motion to consolidate PSC Docket No. 09-277T, the Company’s application to institute a modified fixed variable rate design for gas customers, and 10-237, its gas base rate case. Documents related to the dockets can be found below.

PSC Docket No. 10-237 – (filed July 2, 2010), Archived

Local, Regional and National Issues

Liquefied Natural Gas (“LNG”)- With the increase in natural gas prices and pressure on existing domestic supplies, the use of Liquefied Natural Gas is increasingly viewed as a viable alternative. Historically, LNG has been significantly higher in cost than natural gas, which has hampered efforts to make it available in large commercial quantities. Increasing natural gas prices have narrowed the pricing gap and new import facilities, such as Cove Point in Virginia and a proposed site at Crown Landing in New Jersey, are bringing permitting, siting, and safety issues to the forefront as pressure increases for fuel supplies. To find out more about LNG, visit the Center for Liquefied Natural Gas.
Natural Gas Choice – Beginning in May of 1999, a natural gas choice pilot program was initiated for a limited number of residential and general (small commercial) customers. Five third party suppliers were certified to participate in the program and approximately 7,000 customers enrolled in the program. Due to rising natural gas prices in the latter part of 2000 and the subsequent withdrawal of the third party suppliers, the Commission and Delmarva Power through a settlement agreement, terminated the program as of October 31, 2001. Interested parties continued to meet quarterly through April 2002 to review the status of natural gas choice; however, there are no proposals pending by either natural gas company.
The National Association of Regulatory Utility Commissioners- (“NARUC”) has two committees dedicated to addressing issues faced by the natural gas industry: the Natural Gas Committee and the Natural Gas Subcommittee. The Delaware Public Service Commission is represented on both committees.

Natural Gas Regulation Archives