Profile: Chesapeake Utilities Corp (CPK)
22 Jul 2016
Chesapeake Utilities Corporation (Chesapeake), incorporated on November 12, 1947, is an energy company. The Company, through its operating divisions and subsidiaries, is engaged in regulated and unregulated energy businesses. The Company provides natural gas distribution and transmission, natural gas supply, gathering and processing, electric distribution and propane distribution service. The Company operates through two segments: Regulated Energy and Unregulated Energy. The Regulated Energy segment includes the Company's natural gas distribution, natural gas transmission and electric distribution operations. The Unregulated Energy segment includes its propane distribution, propane wholesale marketing, natural gas marketing and natural gas supply, gathering and processing services, which are unregulated as to their rates and services. Also included in the Unregulated Energy segment are other unregulated energy services, such as energy-related merchandise sales and heating, ventilation and air conditioning plumbing and electrical services. The remainder of its operations is considered as Other businesses and eliminations, which consists of unregulated subsidiaries that own real estate leased to Chesapeake Utilities, as well as certain corporate costs not allocated to other operations.
The Company's Regulated Energy consists of natural gas distribution operations in Delaware, Maryland and Florida; electric distribution operation in Florida, and natural gas transmission operations on the Delmarva Peninsula and in Florida. Chesapeake's natural gas and electric distribution operations, which are local distribution utilities, generate revenues based on tariff rates approved by the public service commission (PSC) of each state. Eastern Shore Natural Gas Company (Eastern Shore), the Company's interstate natural gas transmission subsidiary, bills its customers based upon the Federal Energy Regulatory Commission (FERC)-approved tariff rates. Peninsula Pipeline Company, Inc. (Peninsula Pipeline), the Company's Florida intrastate pipeline subsidiary that is subject to regulation by the Florida PSC, has negotiated contracts with third-party customers and with certain affiliates.
The Company's Unregulated Energy segment offers propane as a fuel source where natural gas is not readily available or providing natural gas marketing service to customers able to procure their own supplies. Chesapeake's propane distribution operations sell propane to residential, commercial/industrial and wholesale customers on the Delmarva Peninsula and in southeastern Pennsylvania through Sharp and Sharpgas, and in Florida through Florida Public Utilities Company (FPU) and Flo-gas. The Company provides natural gas supply and supply management services through Peninsula Energy Services Company, Inc. (PESCO) to over 3,000 customers in Florida, over 30 customers located on the Delmarva Peninsula and over five customers operating in other states. The gas that PESCO sells is delivered to retail customers through affiliated and non-affiliated local distribution company systems and transmission pipelines. FPU sells energy-related merchandise in Florida.
Chesapeake Utilities Corp
909 Silver Lake Blvd
PO Box 615
DOVER DE 19903-0615