Delmarva Power Secures $3.6-million in Savings for Natural Gas Customers

Delmarva Power natural gas customers are catching a break – in the manner of $3.6-million in relief to their natural gas bills. This is the result of the resolution of a multi-year federal pipeline rate case that would have increased natural gas transportation costs – and impact the supply portion of your bill. The settlement will bring lasting benefits to Exelon/Delmarva Power customers. Average Delmarva Power natural gas residential customers using an average of 56 cc per month will see a savings of about $1.52 per month.

Additional information from Exelon/Delmarva Power:

Delmarva Power natural gas customers will receive $3.6 million in relief to their natural gas bills following the successful resolution of a multi-year federal pipeline rate case that would have instead increased natural gas transportation costs, which would impact the supply portion of a customer’s bill.

The collective actions of Delmarva Power and parent company, Exelon, will return more than $13 million across three Exelon operating companies (PECO, Delmarva Power, and Baltimore Gas and Electric) in the form of refunds and lower long-term costs. This advocacy also helped avoid more than $12 million annually in additional costs that would have otherwise been passed onto customers.

Advocating for Customers as Costs Rise

The win for customers comes at a time when energy supply costs are rising and reflects Delmarva Power’s continued efforts to advocate on behalf of customers through the Exelon Promise to keep bills as low as possible. 

“The Exelon Promise was launched because we share our customers’ frustration with rising energy costs. While we don’t control the market supply prices that drive many of these increases, we are taking meaningful action to deliver savings and support where we can,” said Tyler Anthony, president and CEO of Pepco Holdings, which includes Delmarva Power. “That means pulling every lever on the costs we can control—strengthening protections so customers aren’t unfairly burdened, expanding relief and flexible options for those who need it most, and advocating for longer-term solutions that bring costs under control while keeping energy reliable for the communities we serve.”

The savings stem from Delmarva Power’s and Exelon’s participation in a proceeding before the Federal Energy Regulatory Commission (FERC) involving a proposed rate increase from Transcontinental Gas Pipeline Company (Transco), a major natural gas interstate transporter in the Mid-Atlantic. Exelon companies intervened and challenged the proposal, ultimately helping to secure a settlement that reduced costs, returned over-collection, and prevented new surcharges.

Meaningful Benefits for Customers

The settlement delivers multiple, lasting benefits for Exelon customers:

• Refunds returned to customers: The refund Delmarva Power received for over‑collections is returned to customers through the normal gas cost recovery process, reducing future charges.  
• Lower long‑term rates: By pushing back on higher pipeline rates, Delmarva Power helped reduce ongoing costs, helping keep energy bills more manageable over time.    
• Elimination of new surcharges: A proposed “Modernization Surcharge Tracker” was eliminated, protecting customers from additional, less transparent pipeline surcharges in future years.  
• Stronger regulatory oversight: By intervening and challenging the filing, Delmarva Power helped ensure the ultimate rates approved by FERC were transparent and fair.    
• Rate stability: The settlement prevents Transco from seeking further base rate increases before August 31, 2027.
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No action is required by customers to receive refunds or benefit from the reduced rates as the refund will be factored into purchase gas cost rates. Average Delmarva Power natural gas residential customers using an average of 56 cc per month will see a saving of about $1.52 per month.

The Exelon Promise is our commitment to deliver immediate relief, strengthen customer protections, and pursue solutions that keep energy reliable and costs as low as possible. For more information visit: https://www.exeloncorp.com/company/exelon-promise.