National Fuel projects 10% rise in cost

Staff report

ERIE, Pa.

National Fuel Gas Distribution Corp., which has some 209,000 customers in 14 counties in northwestern Pennsylvania, including Mercer and Venango, is projecting an increase in overall gas-cost expense totaling about $19.7 million or 10.2 percent beginning Aug. 1.

National Fuel has submitted to the Pennsylvania Public Utility Commission its required annual purchased gas-cost projection for gas purchases to be made beginning Aug. 1 through July 31, 2013.

If approved as filed, in August, the monthly bill for a typical residential customer using 95,000-cubic feet of natural gas annually would increase from $84.87 to $93.51 per month.

In addition, the company’s monthly metered transportation customers, typically large commercial or industrial customers, will also see an increase from 23 cents to 31 cents per thousand cubic feet.

Customers are advised that this is just a forecast for prices to be experienced later this year and that it must be thoroughly reviewed and approved by the PUC before becoming effective, according to a National Gas press release.

Additionally, upon review, the forecast will be adjusted to reflect actual and more current market prices as the year progresses. No change is being made at this time.

“National Fuel is required by law to shop for the most reasonably priced gas while still maintaining an adequate supply for our more than 200,000 customers during the most severe weather,” said Nancy Taylor, senior manager of corporate communications.

“The primary reason for this increase is that costs associated with the purchase and transmission of natural gas to be effective beginning in August are projected to be greater than those reflected in current rates,” she said.

For National Fuel’s Pennsylvania customers, which include those in Mercer and Venango counties, gas-supply charges are established through annual and can be adjusted quarterly to account for changes in the marketplace price of natural gas, Taylor added.

Gas-supply charges make up about 60 percent of a residential customer’s annual bill and are passed on to customers dollar for dollar, without any mark-up or discount. This differs from delivery service charges, which reflect the company’s other costs of doing business, including costs associated with installing and maintaining the local pipeline delivery system, and are determined by the PUC.

Customers can call 800-365-3234 to speak to service representative if they are experiencing a hardship paying their bills during the winter months.