Press Release

PUC OKs Interim Rate Decrease for NFG

Published on 8/21/2008

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an interim purchased gas cost rate (PGC) decrease of about $2.0788 per Mcf for National Fuel Gas Distribution Corp. (NFG).

The Commission voted 5-0 to allow NFG to lower its gas rate from $15.66 to $13.58 (15.3 percent decrease) per Mcf. The average residential customer using 100 Mcf a year will see their annual natural gas bill go from about $2,078 to $1,856. The new rate is effective Sept. 1, 2008.

In its application for the decrease, NFGI said if current gas prices remain unchanged, the company would experience an overcollection.

Natural gas utilities file for a gas cost recovery annually. By law, the utility cannot make a profit by charging consumers more than what it pays for the natural gas. Companies can apply for interim increases or decreases to reflect significant changes in the wholesale natural gas market.

In doing so, the utility company recalculates its rates to reflect what it expects to pay for the natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences between prior projected prices and costs actually paid.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No.     R-2008-2012502

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