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Public Service Commission accepts Chesapeake Utilities tariff consolidation, approves $3.5 million revenue increase
Summary
The Public Service Commission accepted revised tariffs from Chesapeake Utilities Maryland division, Sandpiper Energy and Elkton Gas tied to Phase 2 of case 9722, approving a $3,496,806 annual revenue increase and consolidating tariffs with different volumetric rates retained for each company; staff recommended an April 19, 2025 effective date.
The Public Service Commission on an administrative agenda accepted revised tariffs from Chesapeake Utilities Maryland division, Sandpiper Energy and Elkton Gas that implement a $3,496,806 annual revenue increase and consolidate three company tariffs into a single filing.
Staff attorney Evan Thomas told commissioners the revisions stem from the public utility law judge’s proposed order in Phase 2 of case 9722 and were filed March 27, 2025. “In total, the companies were granted an annual revenue increase of 3,496,806,” Thomas said. He told the commission the consolidated filing keeps separate volumetric rates for each company and includes an updated system improvement rider for Sandpiper customers that will recover costs such as bare-steel replacement and conversions from propane to natural gas.
The staff recommendation drew additional detail from a Chesapeake representative. Brian Quinn, speaking for Chesapeake Utilities, said the company expects the conversion work in Worcester County — including Ocean City, Ocean Pines and Berlin — to be nearly complete and that about 97% of customers previously on propane have been converted to natural gas.
Why it matters: the consolidated tariff changes affect monthly bills for residential customers in the affected territories and change how system improvement costs are collected. Thomas told the commission that an average Maryland division residential customer will see a 7% bill increase, an average Sandpiper residential customer a 12% increase, and an average Elkton residential customer a 13% increase in year one and 7% in year two. The Elkton residential and small general service classes will have those increases phased in over two years to mitigate rate shock, Thomas said. Staff also said Sandpiper’s system improvement rate will decrease from about $0.54 to $0.10 per therm.
The commission voted to accept the tariff for filing with an effective date of April 19, 2025. Commissioner Barbay voted aye. Commissioner Richard voted aye. The motion as recorded in the administrative minutes carried.
Background and next steps: the filing follows the administrative record in case 9722 and the public utility law judge’s proposed order dated March 19, 2025. The consolidated tariff preserves separate volumetric charges by company, so customers in each franchise area will continue to be subject to their company’s specific rates; the system improvement rider remains separately shown for Sandpiper customers. Staff said it is available to answer follow-up questions and the companies will implement rate changes consistent with the effective date.
Commission discussion focused on conversion work in Worcester County and the practical impact on customers; Quinn described the conversion effort as largely successful and said only limited pockets (about 200 customers in Snow Hill) remain to be converted.
The commission’s acceptance of the tariff is a procedural approval of the filed rates and riders; any further contested matters would be reflected in related docket entries for case 9722.
