Local residents may not have to put another log on the fire to
stay warm this winter, at least in the beginning of the season.
On Tuesday, National Fuel Gas announced it would lower its rate
for residential customers using 8,300 cubic feet of gas per month
by $35.45, effective today. The drop means customers currently
paying an average monthly bill of $150.17 will see it lowered to
$114.72.
National Fuel officials said the drop represents a 23.6 percent
savings from the same period last year. The utility can request
rate changes on a quarterly basis through the Pennsylvania Utility
Commission.
Rates for industrial and commercial customers remain unchanged.
The next date for National Fuel to request a rate change arrives in
February.
“This is very good news,” National Fuel Senior Manager of
Corporate Communications Nancy Taylor said, adding the prices for
wholesale natural gas have dropped substantially due to a
combination of market forces resulting in an increased supply of
natural gas. “We are very pleased to pass this … decrease onto our
customers, especially now at the beginning of the heating
season.”
Last winter, natural gas prices soared to an all-time high, when
residential customers were paying an average of $349.47 a month.
The 22.8 percent hike marked the largest in National Fuel’s
history.
National Fuel had previously lowered its prices by 19.1 percent
and 4.5 percent during the previous two cycles.
Tuesday’s announcement was just the latest in a string of good
news for area residents, who are entering the winter heating
season; snow showers are predicted to envelope McKean County and
the surrounding region late this week.
It also comes on the heels of a settlement agreement reached by
National Fuel and the PUC, among other agencies, last month. The
agreement centered on a controversial proposed surcharge by the
utility – which later withdrew its request – calling for an
additional fee to customer bills if the average consumption
dropped.
The proposal was met with a public outcry; National Fuel and the
PUC were flooded with complaints and were also ridiculed by local
politicians whose districts are hurting financially.
However, the agreement does contain a request by National Fuel
to increase its delivery service charges – which is separate from
today’s gas cost adjustment – by 4 percent overall, effective Jan.
1.
“The overall decrease in the gas cost component, which is
currently 70 percent of a customer’s bill, is greater than the
proposed increase in delivery service charges currently before the
PUC,” Taylor said. “Customers’ bills will still be far less than
they were a year ago.”
Taylor said purchased natural gas costs are passed along to the
customer dollar for dollar, with no mark-up or profit for National
Fuel. Taylor indicated the adjusted cost will reflect the cost of
gas that is projected to be purchased by the utility for its
customers through next July.
National Fuel isn’t the only regional natural gas provider which
is lowering prices.
Last month, Columbia Gas announced its rates would be 31 percent
lower than last January. The new rate stands at $8.37 per thousand
cubic feet, leaving an average bill of $107 for customers.
Conversely, Pennsylvania Power and Light was looking at raising
its prices by 7.1 percent. PPL’s service area is scattered and is
concentrated near Coudersport.
Energy officials said a drop in the price of crude oil is also
playing a factor in lower natural gas costs. But, any volatile
changes in the weather during the winter could send prices back up
to meet any increased demand.
National Fuel customers having trouble paying their bills are
encouraged to contact the utility at 1-800-365-3234 to find out
about payment programs and available services.
The utility serves about 214,000 customers in 14 counties across
northwestern Pennsylvania, including McKean County.
