ERIE — National Fuel Gas Distribution Corp. is projecting lower gas bills starting in August.
The company has submitted its annual purchased gas cost projection to the Pennsylvania Utility Commission as required for the time frame of Aug. 1 through July 31, 2019.
National Fuel is projecting a decrease in overall gas supply charges totaling approximately $15.16 per year in this state-required filing. If approved as filed, the monthly bill for a typical residential customer starting in August would decrease $1.26 from $75.06 to $73.80 per month or by 1.68 percent.
The primary reason for this forecasted decrease in gas supply charges is that costs associated with the purchase and transmission of natural gas are projected to be slightly lower than those reflected in current rates. Customers are advised that this forecast is for prices to be experienced next winter (2018-19) and must be thoroughly reviewed and approved by the PUC before becoming effective.
Additionally, upon approval, pricing will be adjusted quarterly to reflect actual and more current market prices. National Fuel is required by law to shop for the most reasonably priced gas while still maintaining an adequate supply for more than 200,000 Pennsylvania customers. As market prices fluctuate, National Fuel is required to pass those changes to customers, without any mark-up or discount.
This differs from delivery service charges, which reflect the company’s costs of doing business (including costs associated with installing and maintaining the local pipeline delivery system), and are determined by the PUC.
National Fuel hasn’t sought to increase delivery service charges in 9 years, even while consistent investments in pipeline safety and system modernization have continued.
