Cost of natural gas in Lewes (sales, 2014, rental)

[Nelliebell]

We settled the end of January on a new home (2200 sq ft) in Lewes DE. One of our requirements was that it have natural gas because it is less expensive. To my surprise my first bill covering February was $215.00 and we haven't even moved in!! Chesapeake Utilities charges GSR or Gas Sales Service Rate in addition to CCF's used. Our most recent gas bill for our drafty townhouse in Montgomery County MD was $108 for the same time period. Was anyone else surprised at how much natural gas is here? Are electric heat and propane heat as high?

[longneckone]

Based on my personal experience with rental houses I would have advised you to use any option rather than Chesapeake Utilities. Wait until you need repairs.

[NJBoy3]

Is that minimum billing. In other words a flat cost regardless of usage.

Would like to hear more about Chesapeake Utilities Natural Gas as I am considering Lewes. Many thanks !!

[James420]

Propane is really high as well. I'm surprised you have natural gas in Lewes as most homes down here have to use propane. Propane burns hotter, so you get a little more for your money but it's really expensive. Since its manufactured from oil you would think the price would of came down a bit, but it didn't.

Heat pumps with some kind of gas backup is the way to go, electricity, although expensive per kilowatt hour, is still cheaper than using gas or oil full time.

[Nelliebell]

It is based on usage. Our bill includes a customer charge $31.75. I assume this will be every month because we have already paid a $35 start up fee. Our actual usage is only about $33.00. The GSR (gas sales service rate) is $149.66 and is based on 1.069 for 140 CCFs that were used. On the back of the bill it says "the GSR represents the cost of natural gas received from our suppliers. The GSR goes up if our suppliers charge us more. It goes down if they charge us less. You are charged a GSR for only the gas you use." Total bill was $214.42.

[NJBoy3]

Jeepers, I would not have thought of this either. In my search I have told my realtor I want NG. Many thanks for getting back to me.

[Nelliebell]

I just spoke to Chesapeake Utilities about my bill. The $31.75 customer charge will be billed every month. This pays for service to the lines, meter checks, etc. The GSR ($149.66) should hopefully go down in the future as Lewes is in the process of getting natural gas to more and more areas. The few homes that currently have natural gas are paying the total cost to get the gas here. Hopefully as more and more homes are hooked up to natural gas the cost of delivery will go down.

[Mary2014]

OP,
Not sure natural gas is worth it to most people unless you are also using it to heat hot water, run a gas dryer and gas stove as well as your source of heat for 5 months out of the year.

I am presently using a duel fuel heat pump, where the heat pump handles the heating above 40 degrees and it automatically switches to propane when the temperature goes below 40 degrees. I also use propane for hot water, but, with a tankless water heater my propane costs are only about $6 per month during the non heating season. So, why would I want to pay and additional $31.75 per month during the off season for a natural gas hookup?

Since I live in a community where there is one large propane tank about 1/2 mile away and each condo has a metered propane line, our HOA negotiated roughly a 33% discount off of the average residential propane prices - making the cost to heat with propane much more economical for our community. Because we have metered propane lines we don't have to worry about scheduling a propane delivery, nor do we have to pay for it up front. We get a monthly bill for what we use and there is no monthly additional fee.

I recently met a couple who just moved into a single family home which was about 10 years old. The house was being heated with propane and they have individual propane tanks. They chose to update to a duel fuel heat pump as well.

If natural gas should become an option in the future, my installer said that my duel fuel heat pump can easily be converted to use natural gas instead of propane. But, with the monthly service fee for natural gas I don't see much of a cost savings as compared to heating with a duel fuel heat pump. Perhaps if all of your appliances are gas appliances it might make a difference.

Mary2014