NFG Lowers Gas Cost Adjustment
By: Bob Neely
Updated: January 31, 2013
(January 31, 2013) Erie, Pennsylvania: National Fuel Gas Distribution Corporation ("National Fuel") has submitted to the Pennsylvania Public Utility Commission ("PUC") a quarterly adjustment to gas supply charges, which will become effective February 1, 2013, for its Pennsylvania customers. This 6.7 percent decrease will lower the monthly bill of a typical residential customer using ninety-thousand cubic feet of gas annually by $5.16, from $76.61 to $71.45. It will also bring the residential Price to Compare to $.55450 per ccf, which is an important reference point for those customers shopping for an alternate gas supplier.
According to Sandra James, Director of Corporate Communications, "Continued decreases in the market price of natural gas due, in large part, to the increasing Marcellus shale gas production, make this quarterly adjustment possible. This change reflects the cost of gas that has been, and will be, purchased by the company for its customers." Pennsylvania utility companies are permitted to update gas supply charges on a quarterly basis to reflect changes in the market price of natural gas. National Fuel's next opportunity to adjust gas supply charges will be May 1, 2013. Gas supply charges are passed along to customers dollar for dollar, with no mark-up or profit to National Fuel.
In a state-required annual filing, National Fuel forecasted a 9.2 percent increase for gas supply charges to be effective August 1, 2013, through July 31, 2014. That forecast was based on information developed in December 2012. Market prices have recently declined below those included in the December forecast. Final rates developed in the annual filing will be determined in accordance with market conditions.
Customers who are having trouble paying their bills are encouraged to call National Fuel at 1-800-365-3234 to find out about payment programs and available services. Additionally, the Low Income Home Energy Assistance Program (LIHEAP) is currently accepting applications for help with this year's heating bills.
According to Sandra James, Director of Corporate Communications, "Continued decreases in the market price of natural gas due, in large part, to the increasing Marcellus shale gas production, make this quarterly adjustment possible. This change reflects the cost of gas that has been, and will be, purchased by the company for its customers." Pennsylvania utility companies are permitted to update gas supply charges on a quarterly basis to reflect changes in the market price of natural gas. National Fuel's next opportunity to adjust gas supply charges will be May 1, 2013. Gas supply charges are passed along to customers dollar for dollar, with no mark-up or profit to National Fuel.
In a state-required annual filing, National Fuel forecasted a 9.2 percent increase for gas supply charges to be effective August 1, 2013, through July 31, 2014. That forecast was based on information developed in December 2012. Market prices have recently declined below those included in the December forecast. Final rates developed in the annual filing will be determined in accordance with market conditions.
Customers who are having trouble paying their bills are encouraged to call National Fuel at 1-800-365-3234 to find out about payment programs and available services. Additionally, the Low Income Home Energy Assistance Program (LIHEAP) is currently accepting applications for help with this year's heating bills.
