National Fuel Gas Distribution Corp. has announced its annual adjustment to gas-cost rates, effective immediately. This increase will raise the monthly bill of a typical residential customer using 115,000 cubic feet annually from $99.63 to $108.17, or by 8.6 percent.

According to Sandra James, assistant director of corporate communications, "The company originally projected a 3.8 percent rate decrease for Aug. 1. However, the nationwide increase in the market price of natural gas has made it necessary to increase rates to more accurately reflect the cost of gas that will be purchased by the company for its customers from Aug. 1, 2003, through July 31, 2004."

If gas costs change significantly during that period, either up or down, utility companies are permitted to update rates on a quarterly basis to reflect those changes. Utility companies do not make a profit on the cost of gas; the purchase price is passed along to customers dollar for dollar.

Ms. James also pointed out, "While current natural gas commodity prices are more than double what they were last year, National Fuel's customers are seeing only a portion of that increase due to the company's purchasing strategy which helps to offset price volatility. That strategy also insures an adequate supply of gas for customers this winter."