ERIE — National Fuel Gas Distribution Corp. has submitted to the Pennsylvania Public Utility Commission its quarterly adjustment to gas supply charges.
This adjustment decreases the monthly bill of a typical residential customer with annual usage of 100,300 cubic feet of gas by $1.95, from $68.46 to $66.51. This 2.85 percent decrease is to become effective today.
Resulting from the abundant supply of Marcellus Shale gas and benefitting northwestern Pennsylvania homes and businesses, market prices for natural gas remain at 11-year lows.
Nearly all of the gas consumed by National Fuel utility customers comes from Northeast-produced shale gas. Pennsylvania is the largest producer of those supplies.
National Fuel’s price-to-compare gas commodity charge also will decrease to $0.35393 per 100 cubic feet (ccf). This reference point, detailed on the National Fuel bill under Gas Supply Charges, is important for customers who are shopping for an alternate gas supplier.
Gas supply charges are passed along to customers dollar for dollar, with no mark-up or profit to National Fuel. Pennsylvania utility companies are permitted to update gas supply charges on a quarterly basis to reflect changes in the market price of natural gas. The next opportunity to adjust gas supply charges will be Feb. 1, 2020.
National Fuel hasn’t sought to increase delivery service charges, which reflect the company’s costs of doing business (including costs associated with installing and maintaining the local pipeline delivery system) and are determined by the PUC, in more than 10 years, even while consistent investments in pipeline safety and system modernization have continued.