September 2, 2000

National Fuel Gas announces rate hike

The Meadville Tribune

ERIE - National Fuel Gas customers can expect to pay more than 18 percent higher rates for natural gas this winter.

On Friday, the utility filed for new gas cost rates with the Pennsylvania Public Utility Commission that will increase a typical residential customer's annual bill by $170.09 - from $909.34 to $1,079.43. The new rates, if approved, will run through July 31, 2001.

Under PUC regulations, natural gas utilities can't make a profit on the cost of gas they purchase from suppliers. Gas costs must be passed through to customers on a dollar-for-dollar basis. However, the rates can be adjusted.

Wholesale prices for natural gas on the spot market have doubled from a year ago, according to Nancy Taylor, National Fuel spokeswoman. Higher demand, caused in part by the expanding role of natural gas in electric power generation, is resulting in higher prices.

Higher costs could be compounded by a return to normal winter weather since the past two winters have been warmer than normal, Taylor said.

"We recognize that this is a significant increase for our natural gas users," Taylor said. "We encourage all customers to try to use natural gas as efficiently as possible to control their costs this winter."

Customers can call National Fuel for tips on reducing natural gas use, information on budget payment programs and programs specifically designed for low income customers.

National Fuel serves about 214,000 natural gas customers in 14 northwestern Pennsylvania counties, including Crawford County.

http://www.metromead.com/news/0902c.html

-- Martin Thompson (mthom1927@aol.com), September 02, 2000