12 Annual Report DF13_3.15_Chesapeake-48

2012 North Suction Relocate Project


Chesapeake Utilities Corporation purchased the operating assets of Eastern Shore Gas and introduced Sandpiper Energy as the new energy company serving the Ocean City, West Ocean City, Pocomoke, Berlin, Ocean Pines and Snow Hill, MD regions.

Sandpiper Energy, a Chesapeake Utilities company, provides natural gas and propane to meet your energy needs. We truly care about our communities and look forward to working with each of you to provide you with smarter and cleaner energy solutions.

There are many benefits to using natural gas once it becomes available to your community, and we encourage you to look through our site to learn more.

For individual propane tank customers, please click here: www.sharpenergy.com.

Public Service Commission of Maryland

Case No. 9410

In the Matter of the Application of Sandpiper Energy, Inc. for a General Increase in its Natural Gas and Propane Rates and for Approval of Certain Other Changes to its Tariff


A public hearing in this matter will be held beginning at 6:30 p.m. on September 20, 2016 in the auditorium of Stephen Decatur High School, 9913 Seahawk Road, Berlin, Maryland 21811. The purpose of the hearing is to hear public comments concerning a proposed settlement agreement in the case, which calls for overall decreases to natural gas and propane delivery service rates over the next six years. While the volumetric rates based on usage for residential customers will be decreasing over time, the fixed monthly customer charges will initially increase (from $4.50 per month for all residential customers to $6.50 for RS-1 customers, $8.00 for RS-2 customers and $10.00 for RS-3 customers) and then remain the same until the Commission approves any future changes. The proposed settlement also splits the one existing commercial rate class into three rate classes based on usage levels.

In addition, the proposed settlement calls for several new non-recurring charges, including a connection charge ($35), a reconnection charge ($35), an after-hours service connection or reconnection charge ($60), a seasonal reconnection charge (equal to the sum of the monthly customer charges missed during the reconnection period), a returned payment charge ($20), a change of account charge ($17) and a failed trip charge ($35).

The proposed settlement also authorizes several new tariff offerings including a Multi-Family Housing Incentive, a Poultry House Negotiated Rate Clause, a Natural Gas Compression Service, an allowance for customers to aggregate usage from multiple meters on campus-type settings to qualify for transportation service, and a reduction in the minimum consumption requirement for a customer to qualify for a Negotiated Contract Rate from 25,000 natural gas Ccf (10,417 propane Ccf) to 15,000 natural gas Ccf (6,250 propane Ccf). The proposed settlement also establishes a Revenue Normalization Adjustment (“RNA”) for the residential and small commercial customer classes that would stabilize delivery service revenues from those classes and which is similar to approved RNAs for other Maryland utilities.

Copies of filings in this matter, including the proposed settlement agreement and tariff changes, are available on the website of the Maryland Public Service Commission in the docket entries for Case No. 9410. The Commission’s website is: http://webapp.psc.state.md.us/Intranet/home.cfm.

Any customer wishing to comment may do so at this hearing. In addition, written comments, referencing Case No. 9410, may be sent to David J. Collins, Executive Secretary, Maryland Public Service Commission, William Donald Schaefer Tower, 6 St. Paul Street, Baltimore, Maryland 21202-6806 by September 30, 2016.

Reasonable accommodations will be made at Public Service Commission proceedings for qualified persons with disabilities, if requested 5 days in advance of the proceeding. (Dial 410-767-8000 or 1-800-492-0474 or access the prior numbers through the Maryland Relay Service at 1-800-735-2258).

32145 Beaver Run Drive, Salisbury, MD  21804


© 2016 Sandpiper Energy. All rights reserved.