Chesapeake Utilities Partners With Allen Family Foods In Expanding Natural Gas Service To Harbeson, Delaware

Dover, Delaware — Chesapeake Utilities today announced the signing of an agreement with Allen Family Foods, Inc. of Delaware to provide natural gas service to their Harbeson, Delaware processing plant as well as completion of the required facilities. Upon construction of the facilities, natural gas service was initiated.

“Working together, we have extended our long standing partnership with Allen’s to provide natural gas service to their Harbeson facility in Eastern Sussex County,” said Jeffrey Tietbohl, Vice President of Chesapeake Utilities Corporation (NYSE:CPK). “Allen’s is an advocate of improving the air quality in Sussex County and the conversion of this plant to natural gas further demonstrates their commitment to energy efficient, clean burning natural gas and the environment.”

Chesapeake Utilities is continuing to address the needs of larger industrial and commercial customers in Sussex County, Delaware who are demanding natural gas, because of its cost relative to alternative fuels as well as its environmentally friendly features. Bringing natural gas to Allen Family Foods required Chesapeake Utilities to extend its distribution main infrastructure by over 2.5 miles.

The anticipated annual margin from the consumption of natural gas at the Allen’s facility will equate to approximately 630 residential heating customers. In addition, the switch to natural gas will reduce its carbon emissions by over 15%. In the last three years, the commercial and industrial customers that have switched to natural gas in Sussex County have reduced carbon emissions by over 16,000 tons per year. This equates to 2,900 less cars on the road.

“Whenever we have the opportunity, we utilize natural gas in our plant facilities because it is domestic, cleaner and less expensive than the alternatives,” said Tom Miller, Vice President of Operations and spokesperson for Allen’s. “The conversion to natural gas will assist us with our future expansion plans.”

Allen Family Foods is a Delaware based industry leader and global exporter of premium poultry products.
Natural gas supplies nearly one-fourth (24%) of all energy used in the United States and is a highly reliable, domestic energy source serving over 64 million residential customers and over five million commercial enterprises in the United States. Ninety-nine (99%) of the natural gas used in the United States is produced in North America. Natural gas is the cleanest fuel readily available on the market today. It is far more efficient, cost-effective and environmentally friendly than other alternative sources when used in the home for heating and cooking. The direct use of natural gas can help the United States reach its carbon reduction goals; and its abundance as a domestic resource means that our country has enough natural gas to last more than a century, making it the clean energy to meet tomorrow’s needs.

Chesapeake Utilities’ natural gas distribution operations serve approximately 120,230 residential, commercial and industrial customers in Delaware, Maryland and Florida. The Delaware division serves southern New Castle County and is the only natural gas distribution system serving Delaware’s Kent and Sussex counties.
Chesapeake Utilities Corporation is a diversified utility company engaged in natural gas distribution, transmission and marketing, electric distribution, propane gas distribution and wholesale marketing, advanced information services and other related services. Information about Chesapeake’s businesses is available at www.chpk.com.

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For more information, contact:
Jeff Tietbohl, Vice President
Chesapeake Utilities Corporation
302.734.6797
jtietbohl@chpk.com

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