National Fuel Gas Supply Charges to Decrease 58 Percent

On the evening of Monday, July 31st, 2023, at 5:14 PM Eastern Daylight Time.

National Fuel has declared that their charges for gas supply will decrease starting from August 1st, according to the announcement made on Monday.

The recent modifications in rates will lead to a drop in the monthly payment for an average household consumer who consumes 99,000 cubic feet of gas annually. The reduction amounts to $25.85, resulting in a revised bill of $64.05 instead of the previous $89.90.

Customers will see a significant drop in their supply charges, by as much as 58 percent. The reason behind this reduction is the lower cost of natural gas in the market. It is important to note that these gas supply costs are directly transferred to customers without any additional mark-up or profit being added to the price.

Pennsylvania utility companies have the authorization to revise their gas supply charges every three months to align with the current market expenses. The upcoming adjustment is scheduled for November 1st.

The gas commodity charge for National Fuel's price-to-compare will also drop to $0.30959 per 100 cubic feet (ccf).

During the month of June, the PUC (Public Utilities Commission) gave the green light to a collaborative agreement that allows for an augmentation in National Fuel's fundamental delivery prices, enabling them to collect an extra $23 million in yearly earnings. This increase in the base rate delivery charge is a result of the expanding expenses associated with running National Fuel's utility-operated pipeline distribution system. Consequently, residential customers who consume around 83 ccf per month can expect their monthly bill to rise by about $6.03.

National Fuel sought the extra income as a result of increasing expenses related to operating costs and system upgrades, which include expediting improvements in pipeline safety and modernization.