Business Description
Chesapeake Utilities Corporation is a Delaware corporation formed in 1947.
We are a diversified energy company engaged, through our operating divisions
and subsidiaries, in various energy and other businesses. We operate primarily
on the Delmarva Peninsula and in Florida, Pennsylvania and Ohio and provide
natural gas distribution, transmission, supply, gathering, processing and marketing;
electric distribution and generation; propane distribution; propane and crude
oil wholesale marketing; steam generation; and other energy-related services.
The natural gas commodity market for Chesapeake Utilities Florida division
and FPU’s Indiantown division is deregulated. Accordingly, marketers,
rather than a traditional utility, sell natural gas to end-use customers in
those jurisdictions. For all of our other local distribution utilities, we have
fuel cost recovery mechanisms authorized by the PSCs that allow us to periodically
adjust fuel rates to reflect changes in the wholesale cost of natural gas and
electricity and to ensure we recover all of the costs prudently incurred in
purchasing natural gas and electricity for our customers.
In addition to the base rates approved by the PSCs, certain of our local distribution
utilities have additional surcharge mechanisms which were separately approved
by their respective PSC. The most notable surcharge mechanisms include Delaware’s
surcharge to increase the availability of natural gas in portions of eastern
Sussex County, Delaware; Marylands surcharge designed to recover the costs
associated with conversions to natural gas and to improve infrastructure in
Worcester County, Maryland; and Florida’s GRIP surcharge designed to recover
capital and other costs, inclusive of an appropriate return on investment, associated
with accelerating the replacement of qualifying distribution mains.
70.6 %