Published Saturday, February 1, 2003
boosts
gas rates
by 8.2%
demand, weather
Herald Business Editor
Starting today, it's going to cost National Fuel Gas customers more to keep warm.
The utility said Friday it's increasing natural gas rates by 8.2 percent. For the typical residential customer, that means the monthly gas bill will rise to $95.40 from $88.19.
NFG blamed the hike on rising gas costs because of soaring demand as bone-chilling temperatures descended on the East Coast during much of January.
At this time last winter, temperatures were 17 percent higher than normal in northwestern Pennsylvania; this winter, temperatures are 9 percent lower than average, said Nancy Taylor, NFG's senior manager of corporate communications.
"It's 36 percent colder than last year,'' Ms. Taylor said. "It's safe to assume everybody's gas bills are higher than last year.''
NFG raised gas costs as part of a quarterly adjustment to reflect the price the utility has to pay, and will be paying, for natural gas it buys for customers.
"During the past three months, customers have actually been paying less for gas than what the company has paid to obtain it for them,'' Ms. Taylor said.
Utility companies are allowed to adjust rates quarterly to reflect actual changes in gas costs. By regulation, utilities can't generate a profit on the price it pays for natural gas. A utility such as NFG earns a profit on service fees and fees for transporting gas through its pipeline.
"While current natural gas commodity prices are more than double what they were last year, National Fuel customers are seeing only a portion of that increase due to the company's purchasing strategy, which helps to offset price volatility typically seen during winter months,'' Ms. Taylor said.
National Fuel recently forecast a 3.8 percent decrease for purchased gas costs in its annual state-required filing, to be effective Aug. 1, 2003. That forecast may change before that date based on market trends.
Customers having trouble paying their bills are encouraged to call National Fuel at (800) 365-3234 to find out about payment programs and available services, or for tips on how they can conserve energy.
National Fuel serves about 214,000 customers in 14 counties in northwestern Pennsylvania, including Mercer County.