ERIE — National Fuel Gas Distribution Corp. is asking the Pennsylvania Public Utility Commission to raise rates beginning in August.
National Fuel submitted to the Pennsylvania Public Utility Commission its required annual Purchased Gas Cost projection for gas purchases to be made Aug. 1, 2020, through July 31, 2021.
The company is projecting an increase in overall gas supply charges for a typical residential customer totaling approximately $32.23 per year in this state-required filing. If approved as filed, the monthly bill for a typical residential customer starting in August 2020, would increase from $69.49 to $72.18 per month or by 3.87 percent.
The primary reason for this forecasted increase is that the cost of natural gas is projected to be slightly higher than the cost reflected in current rates. Customers are advised that this forecast is for prices to be experienced next winter (2020-2021) and must be thoroughly reviewed and approved by the PUC before becoming effective.
Additionally, upon approval, and in accordance with applicable regulations, pricing will be adjusted quarterly to reflect current market prices.
National Fuel is required by law to shop for the most reasonably priced gas while still maintaining an adequate supply for approximately 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 more than 10 years, even while consistent investments in pipeline safety and system modernization have continued.