Dover, DE – Chesapeake Utilities Corporation (NYSE: CPK) (Chesapeake Utilities) will provide natural gas to power a 3MW combined heat and power (CHP) plant at Peninsula Regional Medical Center (PRMC) in Salisbury, Maryland. Representatives from Chesapeake Utilities joined hospital and state officials in a commissioning event held on August 18 where Maryland Governor Larry Hogan spoke about the economic and environmental benefits of the CHP plant.

According to the Environmental Protection Agency, CHP plants currently account for 8 percent of U.S. electricity generating capacity, and are a critical tool needed to reduce carbon emissions and generate energy significant cost savings nationwide.

“We’re excited to provide Peninsula Regional Medical Center with the clean, safe and reliable energy option of natural gas which provides environmental and economic benefits to the Maryland Eastern Shore,” said Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “This partnership is an example of our employees’ commitment to developing effective ways to grow the Company strategically while continuing to deliver value to our employees, customers, investors and the communities we serve.”

In addition to providing natural gas transportation service to several CHP projects on the Delmarva Peninsula and in Florida, Chesapeake Utilities Corporation recently constructed its first CHP plant on Amelia Island, Florida in 2016. The Eight Flags Energy CHP Plant generates approximately 20 MW of base load power, producing enough electricity to meet 50 percent of Amelia Island’s average demand. 

CHP plants use conventional electricity generators, but add an extra step to capture and utilize heat typically exhausted from the system, providing significant efficiency improvements. PRMC’s CHP system is designed to provide electricity for critical hospital functions and thermal energy for the medical center’s hot water system.

“This is the third CHP project Chesapeake Utilities has implemented throughout the Delmarva Peninsula in the past few years and we believe it’s a valuable energy option for municipalities, universities, schools and hospitals – all of whom rely on their energy source in order to perform their respective critical operations,” said Aleida Socarras, Vice President of Chesapeake Utilities.  “This clean, highly-efficient project is another excellent example of natural gas being an economic engine that allows our region to grow strategically while providing great opportunity to our customers.”

The use of natural gas to produce on-site electricity will reduce PRMC’s carbon emissions by an estimated 50 percent and provide critical systems with power during electrical system disruptions. Because of the competitive pricing of natural gas versus higher-cost grid electricity, PRMC will also incur a significant reduction in overall energy costs.

“Stewardship is one of Peninsula Regional’s core values. By installing the CHP, we achieve both environmental and economic stewardship that is a benefit to our community,” said Dr. Peggy Naleppa, PRMC President and CEO. “It also makes PRMC more resilient; in the event of a power grid failure or natural disaster, we have a built-in backup that will allow us to continue to care for our community.”

About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy company engaged in natural gas distribution, transmission, marketing, gathering and processing; electricity distribution and generation; propane gas distribution and wholesale marketing; and other related services. Information about Chesapeake Utilities Corporation and the Chesapeake family of businesses is available at

Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City, Oklahoma.

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For more information contact:
Mike Stock
Sr. Director, Corporate Communications
Chesapeake Utilities Corporation
[email protected]


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