National Fuel Gas : Adjusts Supply and Delivery Charges in Pennsylvania
The costs associated with providing electricity will see a significant decline of 58% as a result of reduced prices for natural gas.
National Fuel Gas Distribution Corporation, also known as National Fuel, has recently presented its yearly changes to gas supply charges to the Pennsylvania Public Utility Commission (PUC). These changes will be implemented on August 1, 2023. Additionally, the PUC has approved a joint agreement that allows National Fuel to raise its base delivery rates, which will also take effect tomorrow. Fortunately, these adjustments will not have any negative impact on National Fuel customers. In fact, the monthly bill for a typical residential customer who uses approximately 99,000 cubic feet of gas per year will actually decrease by $25.85. Consequently, the bill will go down from $89.90 to $64.05.
The cost for supplying natural gas is set to decrease by 58% as a result of the lower market rates. This drop in prices comes after a year of unpredictable commodity markets and nearly unprecedented highs. By reducing the expenses for purchasing natural gas supplies for customers, National Fuel is able to offer a significantly lower price. It is important to note that National Fuel does not add any additional charges or profit to the gas supply costs passed on to customers. In Pennsylvania, utility companies have the ability to revise gas supply charges every quarter based on changes in the market price of natural gas. The next opportunity to make adjustments to gas supply charges will occur on November 1, 2023.
The gas commodity charge from National Fuel, which is used as a reference point on the bill under Gas Supply Charges, will also drop to $0.30959 per 100 cubic feet (ccf). This is significant for customers who are considering switching to a different gas supplier.
In the month of June, the PUC gave their approval to a shared agreement that allows National Fuel to raise their basic delivery rates. This increase will help them recover an extra $23 million in revenue on an annual basis. By raising the charges for delivering gas through their utility pipelines, the monthly bill for residential customers using 83 ccf (hundred cubic feet) of gas per month will go up by roughly $6.03. National Fuel requires these additional funds to cover the growing expenses of operating their utility pipeline distribution system and to make investments in improving its safety and modernization.
Furthermore, the collective agreement encompasses improvements to National Fuel's support for customers and universal service initiatives, incorporating the following:
The PUC has given the green light for a 5-year experiment called the Weather Normalization Adjustment (WNA). This adjustment aims to prevent sudden changes in customer bills and shield both ratepayers and the Company from unpredictable weather patterns. The WNA is a billing modification that ensures gas bills remain consistent when temperatures deviate from the norm, whether it's unusually warm or cold. It will only affect customer bills issued between October and May each year during the trial period. Starting from October 1, 2023, customers can expect to see WNA charges on bills that arrive during this period.
National Fuel is extending an invitation to its customers who may be facing difficulties in meeting their financial obligations to reach out to them at 1-800-365-3234. By initiating this conversation, customers can better understand the various payment assistance initiatives that may be available to them.
This blog section was released by National Fuel Gas Co. on July 31, 2023, and is fully accountable for the information provided. It is being distributed publicly without any modifications at exactly 21:11:36 UTC on July 31, 2023.
