Chesapeake Customers to Face First Base Gas Rate Hike in 9 Years

Public Service Commission approves settlement resulting in a 6%-6.5% increase

On June 18, 2025, the Delaware Public Service Commission (PSC) approved the settlement of Chesapeake Utilities Corporation’s (Chesapeake) natural gas base rate case.  As a result of the settlement, Chesapeake residential home heating customers will see a rate increase of 6% and non-heating customers will see a rate increase of 6.5%. For an average residential home heating customer, this will result in an increase of approximately $5.37 per month, and for an average residential non-heating customer, an increase of approximately $2.74 per month.

Chesapeake filed its rate case on August 12, 2024, initially seeking an increase in its revenue of $12.1 million, raising the requested increase to $12.8 million in later filings. Chesapeake’s rate case was its first request to increase base gas rates in nine years.

Through the settlement, the amount of the overall rate increase was reduced from Chesapeake’s initial request of $12.1 million to a final settlement of $6.1 million, lowering the impact of the rate increase on Chesapeake customers.

“We know every dollar counts for Delaware families, so we pushed to cut Chesapeake’s original request by half,” said Jameson Tweedie, Delaware Public Advocate. “This agreement keeps monthly fixed charges the same and helps limit the impact on customer bills.”

The settlement also ensures there will be no increases to monthly fixed customer charges or miscellaneous charges by Chesapeake. This settlement is the result of extensive negotiations between the Division of the Public Advocate, staff for the PSC, and Chesapeake and reflects a mutual balancing of various issues and positions.

Chesapeake implemented interim rates on May 1, 2025, that match the settlement amount. As a result, Chesapeake customers will not see a change in rates on future bills. The settlement does not resolve a rate design issue that was raised in the case; that will be addressed through a continuing Public Service Commission proceeding.

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The Division of the Public Advocate advocates for the lowest reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes of consumers.  

The Delaware Public Service Commission (PSC) works to ensure safe, reliable and reasonably priced electric, natural gas, wastewater, and water services for Delaware customers. The PSC is made up of five part-time Commissioners, appointed by the Governor and confirmed by the Senate. The Commissioners are supported and assisted by a staff of full-time state employees.