The Herald, Sharon, PA Published Thursday, April 17, 2003

NFG files
rate-hike
request

For the first time in eight years, National Fuel Gas Distribution Corp. has filed a request with the Pennsylvania Public Utility Commission for a rate increase to cover increases in its cost of providing services.

If approved as filed, the average bill for a typical residential customer would increase by 6.8 percent, or $6.51, a month from $95.42 to $101.93, NFG said in a news release.

According to the release, the hike is needed to cover a $16.5 million increase in annual operating revenues. It would take effect June 15.

Several factors are driving the request for an increase, the release said, including increases with the company's ongoing construction program and increases in difficult-to-control costs, such as uncollectible accounts and personnel expenses.

"It has been eight years since National Fuel has requested an increase in the rates associated with the cost of service," said Sandra James, assistant director of corporate communications. "During the course of those eight years, we have done everything we can to manage our costs effectively."

Those efforts, she said, include a significant reduction in manpower and a consolidation of facilities. Debt has also been refinanced to get the lowest rates available, but costs have continued to rise.

The PUC will examine the request and could grant all, some or none of it.

Ms. James added that if the request is approved in full, overall rates would still be lower than they were two years ago when the cost of gas hit an unprecedented high.

Customers can call National Fuel at (800) 365-3234 to obtain more information about the proposed increase.

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



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