Fuel Increase to Gas Supply Charge
Fuel Gas Distribution Corporation ("National Fuel") has submitted to
the Pennsylvania Public Utility Commission ("PUC") a quarterly
adjustment to gas supply charges, which will become effective May 1, 2014, for
its Pennsylvania customers.
This 7.3 percent increase will raise the monthly
bill of a typical residential customer using ninety-thousand cubic feet of gas
annually by $5.55, from $75.84 to $81.39. It will also bring the residential Price to Compare to $.64057 per ccf,
which is an important reference point for those customers shopping for an
alternate gas supplier.
to Sandra James, Director of Corporate Communications, "This increase is
directly related to the increase in the market price of gas and reflects the
cost of gas that has been, and will be, purchased by the company for its
customers." Pennsylvania utility companies
are permitted to update gas supply charges on a quarterly basis to reflect
changes in the market price of natural gas. National Fuel's next opportunity to adjust gas supply charges will be
August 1, 2014. Gas supply charges are
passed along to customers dollar for dollar, with no mark-up or profit to
This differs from
delivery service charges, which reflect the company's other costs of doing
business (including costs associated with installing and maintaining the local
pipeline delivery system), and are determined by the PUC. Efficiencies gained by good management and a
workforce that knows how to keep operation costs under control is how National
Fuel has been able to maintain steady delivery rates, since January 2007.
prolonged, colder than normal winter resulted in increased demand for natural
gas to heat homes and businesses," said James. That demand, in turn,
resulted in an increase in the market price of natural gas. "National Fuel's buying strategies and
good planning for the winter heating needs of our customers enabled us to
provide uninterrupted service," James added. "We were also able to avoid an increase
in gas costs for the previous quarter that began on Feb. 1, 2014, which would
have had a profound impact on customers' bills during some of the coldest
weather we've seen in some time."
Fuel has a variety of natural gas supply sources and uses a combination of
proven methods that allow flexibility to adjust purchases. Consequently, customers were somewhat
insulated from price increases as more than half of the gas purchased this
winter to heat their homes was based on summer and forward pricing strategies,
the majority of which was placed into nearby, underground natural gas storage
facilities. Through its gas management
plan, National Fuel purchases natural gas at the best possible cost while
ensuring security of supply and reliability of delivery.
who are having trouble paying their bills are encouraged to call National
Fuel at 1-800-365-3234 to find
out about payment programs and available services.
Fuel serves approximately 209,000 customers in 14 counties in northwestern