Starting today, National Fuel customers will be paying less for
the cost of natural gas than they were at this time last year, as
rates are decreasing 16.8 percent.

“This makes our rates lower than they were one year ago,”
confirmed Sandra James, assistant director of corporate
communications for National Fuel. As of Aug. 1, 2005, the rates
were $13.67 per MCF (thousand cubic feet); as of today, the rates
are $13.39 per MCF.

“The good news is that lowers the average customer’s bill by
almost $24 a month,” James said. The typical residential customer
using 8,300 cubic feet of gas per month will pay $120.13 instead of
$144.41.

The last gas cost decrease came in February and was for 4.36
percent, she said. Before that, the last time it decreased was Nov.
1, 2003.

“Your gas bill comes in two parts,” James explained, “the cost
of gas and the cost of service. This decrease is for the cost of
gas. What we pay for the cost of gas is what the customer pays for
the cost of gas, there’s no mark-up and there’s no profit.

“It is the market price of gas and we have no control over
that,” she said.

In Pennsylvania, utility companies are permitted to update their
rates on a quarterly basis to reflect actual changes in gas
costs.

“The next opportunity is Nov. 1,” James said.

The market price for gas had hit record highs last winter,
leaving Pennsylvania residents shuddering at the thought of facing
another winter at similar rates. This 16.8 percent decrease will
provide some welcome relief.

However, many residents remain up in arms about a proposed
surcharge that would add a fee to consumers’ bills if the average
consumption drops. The exact amount is not clear, but would be
based on a formula involving the price of gas, the number of homes
served and the average amount of gas used per household.

National Fuel also asked for a 6.9 percent increase in the
delivery service charge. The increases are being sought to recoup
decreased sales, increased operating expenses and increases to rate
base.

Both requests remain under consideration by the Pennsylvania
Public Utility Commission, which has until March 2, 2007, to make a
decision.

The commission is investigating the company’s proposal. Included
in the investigation will be public input hearings, which members
of the public are encouraged to attend.

James said Monday that even if the PUC approves the increases
sought by National Fuel, the customer will still be saving money
because of the decrease in the market price for natural gas.

National Fuel serves approximately 214,000 customers in 14
counties in Pennsylvania.