National Fuel Rate Hike of 22.8%
October 31, 2005
National Fuel Gas Distribution Corporation
(October 31, 2005) Erie, Pa.: National Fuel Gas Distribution
Corporation has filed new rates with the Pennsylvania Public Utility Commission
for a quarterly adjustment to gas cost rates to be effective November
1, 2005. The new rates represent an increase of 22.8 percent and will
raise the annual bill for a typical residential customer from $1,534.30
to $1,883.77. According to Nancy Taylor, Senior Manager of Corporate Communications,
"This quarterly adjustment is necessary to more accurately reflect
the price of natural gas purchased by the company for its customers.”
For National Fuel’s Pennsylvania customers, gas cost rates are adjusted
on a quarterly basis with an annual reconciliation, while New York customers
experience monthly adjustments to account for changes in the marketplace
price of natural gas.
Increases in the wholesale price of natural gas are affecting natural
gas customers nationwide. According to the American Gas Association, this
summer’s very warm weather and two hurricanes have strained an already
tight natural gas market, pushing prices upward. As a result, natural
gas utility companies have been forced to purchase their natural gas at
a much higher price than ever before. It is important to remember that
utility companies do not make a profit on the cost of gas; the purchase
price is passed along to customers dollar for dollar.
Ms. Taylor added, "We recognize that recent increases in gas costs,
combined with the upcoming cold weather, will result in energy bills that
are considerably higher than at this time last year. Customers should
prepare now for that colder weather. We urge them to take steps to make
sure their homes are energy efficient. Drafts around doors and windows
should be sealed; attics and walls should be well insulated; heating equipment
and appliances should be checked to make certain they operate at peak
efficiency. Thermostats can also be turned back to help control costs.”
To make taking these steps easier, National Fuel is offering the Energy
Partnership Savings Card, which offers discounts on a wide range of efficiency
products and services—everything from insulation and weather stripping
to furnace cleanings and inspections--from vendors throughout the area.
The program is completely free of charge. To receive an Energy Partnership
Savings Card, consumers have two options. They can call 1 (866) 757-TIPS,
leave their name and full mailing address, and a card, along with a list
of participating vendors, will be sent to them via mail, or they can download
and print the information from National Fuel’s website, www.nationalfuelgas.com.
In addition, customers can call the company to find out about payment
programs and services that may help them. National Fuel offers a Budget
Plan that allows customers to level out their bills over a year, which
could ease the impact of these price changes on their budgets in the winter
months. The company also has programs specifically designed for low-income
customers. Customers can call 1-800-365-3234 for additional information.
National Fuel serves approximately 214,000 customers in 14 counties in
northwestern Pennsylvania.