MERCER COUNTY

   » National Fuel Gas customers' bills are going up 5.1 percent, the company said Thursday as it announced a gas cost rate increase.

The increase is effective immediately, NFG said.

The hike means the typical NFG customers' monthly bill will rise to $88.09 from $83.78, a $4.31 rise. The increase was in the utility's annual adjustment, which the utility believes will reflect the price of natural gas from Aug. 1 to July 31, 2003.

If gas prices change significantly -- up or down -- during that period, utility companies are allowed to update rates on a quarterly basis to reflect those changes.

Utility companies are prohibited from making a profit on the price they pay for gas and must pass along their purchase price to customers, dollar-for-dollar. Utilities generate profits by transporting natural gas through their lines and service fees.

"Rates are still lower than at this time last year, and more than $3 per thousand cubic feet lower than the record prices experienced during the spring of 2001,'' said Sandra James, assistant director of corporate communications for NFG.

NFG customers can call the utility for conservation tips, payment programs and services at (800) 365-3234. The utility serves about 214,000 customers in 14 northwestern Pennsylvania counties, including Mercer County.