National Fuel - Notice of Proposed Rate Changes
January 22, 2006
National Fuel
Written by: National Fuel
Here is a flyer that was enclosed with your last gas bill
Dear Customer:
Each January, National Fuel is required by law to file a forecast with the Pennsylvania Public Utility Commission (PUC) of the projected gas cost rates for August 1st through July 31st of the next year. This filing will be reviewed by the PUC over the next several months. Because market conditions can cause the cost of gas to go either up or down, we must request a change in the rates we charge you. We are required to bill you for the gas costs, which we incur on your behalf, on a dollar-for-dollar basis. Additionally, we may have to make an adjustment for the previous year in order to assure that we charge you no markup or discount.
This notice outlines the projected change to gas costs for the period August 1, 2006 through July 31, 2007. At this time, the company is forecasting an increase in the gas cost rate for next year. We are required by law to shop for the most reasonably priced gas, while still maintaining an adequate supply for our more than 200,000 customers in even the most severe weather. Our success in finding reasonably priced gas is evidence by the fact that we consistently have had among the lowest natural gas prices in Pennsylvania. However, when market prices change, either up or down, we are required to pass those changes along to you.
Please know that we remain committed to doing everything we can to continue to provide the low cost, uninterrupted gas service upon which you have come to rely on.
National Fuel
Notice of Proposed Rate Changes
To our Customers:
National Fuel Gas Distribution Corporation ("National Fuel" or the "Company") has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase your gas rates as of August 1, 2006. This notice describes the Company's rate request, the PUC's role, and what actions you can take.
The Company has requested an overall rate increase of $38,547,000.00 per year. If the Company's request is approved, the total bill for residential customers using 1,050 Ccf annually would increase from $157.01 to $170.34 per month, or by 8.5%
The total bill for a small commercial customer using 4,750 Ccf annually would increase from $647.74 to $708.04 per month, or by 9.3%
Rates for an intermediate industrial customer using 31,000 Ccf annually would increase from $4,037 to $4,430.74 per month, or by 9.7%
Pursuant to the PUC's regulations, the COmpany makes quarterly filings 3 months, 6 months, 9 months, and 12 months after the effective date of this proposed change (August 1, 2006). Each quarterly filing contains a recalculated rate based on actual gas costs and sales for a three-month period ending on month prior to the filing date and more recent projections of gas prices. If the recalculated rate is more than 2% different from the rate effective at that time and a quarterly filing is made, the recalculated rate would become effective. Quarterly rate adjustments will be investigated by the PUC with the next annual filing.
To find out your customer class or how the requested increase may effect your gas bill, contact National Fuel at 1-800-365-3234.
There are 3 ways to challenge a Company's request to change its rates:
1. You can file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure your self the opportunity to take part in hearings about the rate increase request. All complaints should be filed with the PUC as soon a s possible. If no formal complaints are filed, the Commission may grant all, some or none of the request without holding a hearing before a judge.
2. You can send the PUC a letter telling why you object to the requested rate increase. Sometimes there is information in these letters that makes the PUC aware of problems wit the Company's service or management. This information can be helpful when the PUC investigates the rate request. Send your letter or request for a formal complaint for to the PUC PO BOX 3265, Harrisburg, PA 17105-3265
3. You can be a witness at a public input hearing. Public input hearings are held if the Commission opens an investigation of the Company's rate increase request and if there are a large number of customers interested in the case. At these hearings you have the opportunity to present your views in person tot he PUC judge hearing the case and the Company representatives. All testimony given "under oath" becomes part of the official rate case record. These hearings are held in the service area of the Company.
National Fuel
Rate Comparison:
Commodity
January 2004 - $0.680110 per Ccf
January 2005 - $0.876420 per Ccf
January 2006 - $1.351540 per Ccf
Delivery
January 2004 - $0.25 per Ccf
January 2005 - $0.26 per Ccf
January 2006 - $0.35 per Ccf