ERIE — National Fuel Gas Distribution Corp. has submitted to the Pennsylvania Public Utility Commission its quarterly adjustment to gas supply charges to become effective Nov. 1.
This adjustment increases the monthly bill of a typical residential customer with annual usage of 101,100 cubic feet of gas by $6.44, from $78.72 to $85.16. The rate adjustment is primarily due to higher market prices for natural gas, which have increased the cost of natural gas supplies that National Fuel purchases for customers.
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 Feb. 1, 2022.
While gas prices are trending higher compared to the prior two years, National Fuel’s purchasing strategy and use of storage gas will limit any further volatility or price spikes that could result from a colder than normal winter or cold spike. Additionally, the one-time $100 bill credit and rate reduction recently approved by the PUC, offer residential customers savings on delivery charges that help offset the increase in gas supply costs. Credit and rate reduction amounts vary for commercial and industrial customers.
National Fuel’s price-to-compare gas commodity charge also will increase to $0.63333 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.
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.