National Fuel is requesting the first increase in the base delivery rate for PA customers since 2007

“National fuel” also plans to reduce tariffs for gas supplies for the coming winter

National Fuel Distribution Corporation (National Fuel or the Company) today announced two utility rate actions that will affect portions of Pennsylvania customers’ bills.

• For the first time in more than 15 years, National Fuel has filed a request with the Pennsylvania Public Utilities Commission (PUC) to increase base delivery rates for all Pennsylvania customers, increasing the bill of the average residential customer who uses 84 hundred cubic feet (ccf). gas for $9.74 per month. If approved, the proposed base rate increase is expected to take effect on August 1, 2023.
• Because it is authorized every three months, National Fuel will submit to the PUC an adjustment to its natural gas rates. This quarterly adjustment will reduce the monthly bill of the average residential customer using 84 cubic feet of gas by $2.29 per month and will take effect on November 1, 2022.

Increased base delivery speed

National Fuel is seeking an increase in annual base rate revenue of $28.1 million, or 9.2% of total revenue. Increases in delivery rates that offset the costs of operating National Fuel’s pipeline distribution system require PUC approval following a formal regulatory process. National Fuel operates 4,850 miles of pipelines and related facilities in northwestern Pennsylvania, a system designed to deliver natural gas safely and reliably to approximately 214,000 residential, commercial and industrial customers.

If approved by the PUC, it would be National Fuel’s first base rate increase in Pennsylvania since 2007. Rising costs, combined with the need to continue investing in the modernization and security of National Fuel’s distribution system, have reached a level where an increase in the base supply rate is now necessary. The rate offered by the company will contribute to its ability to:

• Expedit pipeline replacements and upgrades to improve system safety and reliability, reduce emissions, and align with most Pennsylvania utility infrastructure improvement programs.
• Eliminate inflationary pressures to increase operating costs for labor and benefits, procurement of materials and services, and technology and cyber security upgrades.
• Implement a weather normalization adjustment mechanism that will stabilize customer bills and protect ratepayers and the company from changing weather trends.
• Adopt a new residential customer energy efficiency pilot program that will provide rebates to customers who install high-efficiency natural gas appliances for space heating and water, encouraging customers to save on energy use and reduce their environmental footprint.

National Fuel has not raised delivery service charges in Pennsylvania since 2007 as a result of diligent efforts to contain costs and efficiently manage the utility system, according to company president Donna DeCarolis.

“We are proud of our longstanding reputation as a low-cost utility that delivers safe, reliable and mission-critical energy to more than 214,000 Pennsylvania customers,” DeCarolis said. “While additional investment is required to improve our system and service, National Fuel customers will continue to benefit from the lowest delivery rates and access to highly affordable supplies of natural gas produced throughout the Commonwealth.”

The Pennsylvania PUC’s 2022 Rate Comparison Report, released in April 2022, shows that National Fuel has the lowest total monthly bills and the lowest customer and distribution fees in Pennsylvania among the major natural gas companies. Additionally, a review of 2020 residential natural gas price data from the US Energy Information Administration found that National Fuel has the lowest rates in Pennsylvania. National Fuel’s residential heating customers will continue to have the lowest average total bill and the lowest average delivery prices in Pennsylvania even with the proposed rate increase.

National Fuel’s proposal will go through a thorough PUC review process that typically lasts up to nine months. As part of the review process, the PUC may accept, reject, or modify a company’s proposal. If approved, the new shipping rates would likely take effect on August 1, 2023.

Regulation of the fee for gas supply

National Fuel also submitted to the PUC a quarterly adjustment to lower natural gas fees that will take effect on November 1, 2022. The 2.8% reduction in rates from August 1, 2022 rates is primarily due to lower market natural gas prices. . Gas delivery costs are passed on to customers without mark-up or profit to National Fuel. Pennsylvania utilities are allowed to update gas delivery charges quarterly to reflect changes in the market price of natural gas. The next opportunity to adjust gas rates will be February 1, 2023. National Fuel’s gas rates are subject to annual review by the PUC.

National Fuel’s commercial gas fee will also drop to $0.87775 per 100 cubic feet (ccf). This reference point, detailed in the National Fuel Bill under ‘Gas Supply Charges’, is important for customers looking for an alternative gas supplier.

LIHEAP opens November 1st

LIHEAP, a federally funded low-income housing assistance program, opens Nov. 1 to eligible clients. Grant amounts range from $300 to $1,000 and are awarded on a first-come, first-served basis. A family of four with an annual income of $41,625 or less can qualify for the grant. Eligibility depends on income and family size. Crisis subsidies are also available for customers in arrears or those who are currently without gas. For more information, visit www.LIHEAPhelps.com or contact 1-877-443-2743.

National Fuel customers who are having trouble paying their bills are strongly encouraged to call 1-800-365-3234 to discuss available payment assistance programs.

National Fuel Gas Distribution Corporation is the utility segment of National Fuel Gas Company, a diversified energy company engaged in a variety of natural gas-related activities. The utility provides regulated natural gas service to nearly 2 million residents in northwestern Pennsylvania and western New York. For more information, visit www.nationalfuel.com.