ERIE — National Fuel Gas Distribution Corp. has submitted to the Pennsylvania Public Utility Commission its annual adjustment to gas supply charges to become effective Aug. 1, 2021. This adjustment increases the monthly bill of a typical residential customer with annual usage of 101,100 cubic feet of gas by $10.31, from $69.61 to $79.92. The rate adjustment is primarily due to higher market prices for natural gas, which have increased the cost of natural gas supplies National Fuel procures for customer consumption.
Gas supply costs are passed along to customers dollar for dollar, with no mark-up or profit to National Fuel. Pennsylvania utility companies are permitted to update gas supply charges on a quarterly basis to reflect changes in the market price of natural gas. The next opportunity to adjust gas supply charges will be Nov. 1.
Earlier this month, National Fuel filed a request with the PUC to provide immediate and recurring savings on delivery service charges to residential customers through a combination of a one-time bill credit of $100 per customer and ongoing rate reductions. The proposed savings, if approved by the PUC, would begin on Oct. 1, and would help to offset the impact of the increase in monthly gas supply charges described above.
As the result of cost-containment efforts and efficient management, National Fuel hasn’t sought to increase the delivery service charges paid by its residential customers since 2006 even while consistent investments in pipeline safety and system modernization have continued. National Fuel’s price-to-compare gas commodity charge also will increase to $0.49614 per 100 cubic feet (ccf). This reference point, detailed on the National Fuel bill under Gas Supply Charges, is important for customers who are shopping for an alternate gas supplier.