Press Release

PUC Approves Agreement for Lower Rate than Requested by NFG

Published on 11/30/2006

Filed under: Gas

HARRISBURG – The Public Utility Commission (PUC) today approved an agreement for a lower rate increase than requested by National Fuel Gas Distribution Corp. (NFG).

The Commission voted 4-0 to approve the settlement, under which the company will raise rates by about $14.3 million (4 percent). Commission Chairman Wendell F. Holland issued a statement. Vice Chairman James Cawley also issued a statement.

The bill for an average residential customer using 100 thousand cubic feet (Mcf) of natural gas a year will increase from about $120 to $125 a month, according to the settlement. The company’s original proposal called for a rate increase of about $25.8 million (6.1 percent) with average residential bills increasing from about $144 to about $154 a month.

The settlement also called for the company to:

• Increase the size of its Low Income Usage Reduction Program (LIURP) by about $116,400 a year to $1.3 million; and
• Withdraw its proposal for an Enhanced Energy Efficiency Rider and maintain the current residential customer charge.

The rates go into effect Jan. 1, 2007. The company cannot file for another base rate increase before Jan. 28, 2008, according to the settlement, which was reached between the company and the formal complainants in the case including the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, the Community Action Association of Pennsylvania and the Commission’s Office of Trial Staff.

NFG serves about 210,000 customers in Armstrong, Butler, Cameron, Clarion, Clearfield, Crawford, Elk, Erie, Forest, Jefferson, McKean, Mercer, Venango and Warren counties.

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.

# # #

Docket Nos. R-00061493

Contact:

• Press Secretary
  717-787-5722