July/August 2018

A MESSAGE FROM MIKE MCMASTERS, PRESIDENT AND CEO

I want to take this time to sincerely thank everyone for all that you have done. Our results for the second quarter and year-to-date reflect upon your hard work and dedication. I am honored to be part of such a hardworking and committed team of individuals.

The Chesapeake Utilities team lays natural gas pipe along Route 40 in Northeast, MD as part of its initiative to extend natural gas service in Cecil County. Pictured, left to right, are Andrew Peters, Supervisor, Gas Operations; Crewman from Voshell Bros Welding, Inc.; and Jamie Goodman DeFazio, Inspector.

Building upon your efforts in 2016 and 2017, I am excited about the growth initiatives completed and underway in 2018 and the new opportunities that we have identified. Guided by our Company’s energized spirit, we continue to go above and beyond in 2018.

Eastern Shore Natural Gas Company’s $117 million Expansion Project, the largest ever pipeline system expansion for our Company, is in progress since beginning construction in 2017. Once completed, this expansion will increase ESNG’s capacity by 26 percent.

Our FPU team lays pipe for construction of the interconnection between Pensacola Energy and Florida Gas Transmission Company’s interstate facilities, one part of the Northwest Florida Pipeline Expansion Project.

The Northwest Florida Pipeline Expansion Project was completed and placed into service during the second quarter of 2018. This is the Company’s first expansion of natural gas service into northwest Florida. This is part of our strategic plan to increase our footprint and to provide additional transportation and delivery services to municipal utilities and end use customers.

Chesapeake Utilities continues to extend its natural gas distribution services on the Delmarva Peninsula, including Sandpiper Energy’s extension of natural gas service into Ocean City, MD. Currently, we are proceeding with extending natural gas service along Route 40 in Northeast, MD.

Pictured at PESCO’s business location in Pittsburgh, PA, left to right, are Craig Provenzano, Manager of Optimization; Bill Hancock, Assistant Vice President of PESCO; Mark Eisenhower, Vice President of Strategic Planning & Development; Janine Urbanski, Customer Contact Coordinator; Amy Snyder, Regional Manager; Dick Zachariason, Independent Consultant; Mark Isner, Director of Optimization; Brendan Kelly, Director, Origination Executive Lead; Phill Sabol, Director, Origination Executive Lead; and Gerry Thomas, Independent Consultant.

Pictured is an aerial view of Sharp Energy’s North Dover Rail Facility in Dover, DE.

Sharp Energy continues to increase its wholesale throughput capability due to the completion of its North Dover Rail Facility in Dover, DE and construction of its bulk storage plant in Anne Arundel County to serve the western shore of Maryland.  Sharp’s AutoGas business also continues to grow with its strategic focus on converting school buses to propane AutoGas and its alliances with conversion manufacturers.

Also in 2017, Aspire Energy added facilities to serve its expanding markets in Ohio. PESCO increased natural gas sales and expanded operations into western Pennsylvania with the acquisition of strategically positioned commercial and marketing assets. FPU also expanded its propane services by acquiring two small distribution businesses in Florida.

Ideals energize top performance in any organization. Consistently trying to live up to our ideals of aspiring and caring has made us a better and stronger Company.

Pictured is Jay Stubbs, Delivery Driver, unloading fuel from the rail car delivery at the North Dover Rail Facility.

The cover of the 2017 Annual Report depicts our aspiring and caring bird, which symbolizes our Company’s culture, guiding our aspiring and caring nature. Since the rollout of the brand in 2011, our annual report continues to share our Company’s story as aligned with our strategic platform. You are the heart of our success.

Thank you to everyone for your perseverance, creativity and enthusiasm! Your commitment to our customers, communities and each other energizes our strong culture and continuous long-term growth.

 

 

 

Michael P. McMasters, President & Chief Executive Officer

CELEBRATING ACCOLADES

Corporate Governance Awards

Our Corporate Governance team was recognized by Corporate Secretary Magazine as the 2017 Corporate Governance Team of the Year for small to mid-cap sized companies. This was the third year that the Company had been recognized by the magazine for its outstanding Corporate Governance practices, and the second time it has taken top honors.

Pictured at the 2017 Corporate Governance Awards in New York City, left to right, are Mark Eisenhower, Vice President of Strategic Business; Stacie Roberts, Director of Corporate Governance; Jim Moriarty, Senior Vice President, General Counsel and Corporate Secretary; Heidi Zanecosky, Manager, Corporate Governance; and Lou Anatrella, Chief Human Resources Officer.

 

Top Workplace

For the sixth consecutive year, we were honored to receive the Top Workplace Award in 2017. This recognition is a reflection of our strong culture, engagement and the commitment of our employees who work together to achieve success.

 

INOVA Awards

Chesapeake received four 2017 International iNOVA Awards for four videos highlighting our employees’ commitment to the community. The award-winning videos focused on Chesapeake’s culture, participation in our Chesapeake Cares Mentor program, and leadership and partnerships with the Food Bank of Delaware and Go Red for Women®.

 

Be sure to check out these videos and more at our community and our culture pages.

 


 

2018 Best Practices Awards in Outage Communications

FPU was honored with the Bronze Award for mid-sized utilities by Chartwell at the “2018 Best Practices Awards in Outage Communications” in New Orleans, LA. Chartwell recognized FPU for its excellence and innovation in restoring communications after Hurricane Irma.

Pictured, fourth from right, is Crystal Campbell, Marketing Coordinator, who attended the Chartwell “2018 Best Practices Awards in Outage Communications” and accepted the award on behalf of FPU.

 


 

ServeOhio Governor’s Award

Aspire Energy received a commendation from the office of Governor John R. Kasich, on behalf of the state of Ohio. In recognition for “outstanding volunteer services” to the community, People to People Ministries nominated Aspire Energy for supporting programs, including their back to school and holiday collections, throughout the year.

As part of the Company’s Thanksgiving for All campaign, Aspire Energy donated $3,000 to the People to People Ministries in support of the organization’s Thanksgiving dinner program, which provides holiday meals for those less fortunate.


 

Economic & Environmental Impact

Chesapeake Utilities was named 2017 Kent County Tourism Partner of the Year in recognition of its collaboration in creating a positive environmental impact and advancing tourism within Kent County, DE.

Chesapeake Utilities teamed up with Kent County Tourism on the Tourism Office’s mobile visitor center, The Villager. Powered by CNG, the mobile visitor center travels across the Delaware region. Pictured, left to right, are Jared Shelton, Sales Representative; Vince Fiorelli, Sales Representative; Shane Breakie, Director, Sales & Energy Service; Jesse Sapp, Marketing Analyst; Sarah Hardy, Financial & Regulatory Specialist; Dave Detrick, Commercial & Industrial Accounts Manager; Jennifer Vandervort, Sales Representative; and Mike Clevens, Manager, Construction & Design.

 


 

Safety

Safety is a top priority for our Company.  Throughout the last 15 years, our businesses companywide have been recognized with 24 Safety Achievement Awards from the American Gas Association.


 

2018 Air Quality Award Champion

Chesapeake Utilities was honored with the first Annual Air Quality Awareness Champion Award presented by RideShare Delaware and The Air Quality Partnership. This award recognizes Chesapeake Utilities for its efforts in fleet management that reduces emissions by using natural gas and its office practices of energy conservation and waste reduction.

Pictured, left to right, are Dave Detrick, Commercial & Industrial Accounts Manager; Patricia Miller, Nemours Health and Prevention Services; Helen Wiles, Dover/Kent MPO; Kathleen Grier, RideShare Delaware; Amy Reardon, RideShare Delaware; Steve Thompson, Senior Vice President; M.Q. Riding, Manager, Marketing and Communications; Shane Breakie, Director, Sales & Energy Service; Lerrissa Boardley, DART First State; Randi Novakoff, WILMAPCO; and Arlene Beltran, RideShare, Delaware.


 

Industry Excellence Award

The Southeastern Electric Exchange, Inc. named the Eight Flags Energy Combined Heat and Power (CHP) Plant a 2017 Industry Excellence Award winner in the Production category. The award recognizes projects that demonstrate innovation, improvements and technical complexity.

Pictured, is our natural gas-fired Eight Flags Energy CHP Plant located on Amelia Island, FL.

 


 

Engineering Innovation Award

FPU received the Southern Gas Association’s Engineering Innovation Award in recognition of the inventive engineering, design and business model used in the development of the Eight Flags Energy CHP Plant. The innovative project lowered electric costs for customers, enhanced system reliability, created economic benefits for the community and had a positive impact on the environment.

 


 

Marketing Excellence Award

The Southern Gas Association recognized FPU with a Marketing Excellence – Member’s Choice Award for its “Natural Gas Spring Showers” campaign. The program encouraged FPU customers to apply for substantial natural gas rebates on eligible appliances, such as hot water heaters, to help offset appliance costs.

Pictured, left to right, are Crystal Campbell, Marketing Coordinator; and Danielle Mulligan, Manager, Marketing.

 


 

2018 Social Media Awards

PR News presented FPU with two honorable mentions during the PR News’ Social Media Award Luncheon at the Yale Club in New York City. FPU was a finalist in the categories, “Facebook — Best PR Campaign” and “Facebook – Community/ Engagement” for its communications efforts during Hurricane Irma.

Pictured, left to right, are Melanie Ryder, Corporate Publications Manager; Crystal Campbell, Marketing Coordinator; Danielle Mulligan, Manager, Marketing; DeShaundra Jones, Director of Customer Care; and Sydney Davis, Digital Communications Manager.

 


 

Best Gas Company Awards

For the second consecutive year, Sharp Energy received awards for “Best Gas Company of the Eastern Shore” and “Best Southern Delaware Gas Company – Sussex County” as chosen by the readers of The Metropolitan Magazine.

Pictured, left to right, are Andy Hesson, Assistant Vice President of Sharp Energy; Mandie Granger, District Manager; Lynn Muir, Customer Experience Manager; Suzy Hutchison, Customer Experience Manager; and Mike Petito, Commercial & Industrial Accounts Manager.