National Fuel Pipeline Unit Receives Rate Complaint and Motion for Summary Disposition
April 09 2006 - 8:00PM
Business Wire
Late Friday, April 7, 2006, National Fuel Gas Supply Corporation
("Supply Corporation"), the wholly-owned interstate pipeline
subsidiary of National Fuel Gas Company (NYSE: NFG), learned that
the Public Service Commission of the State of New York, the
Pennsylvania Public Utility Commission and the Pennsylvania Office
of Consumer Advocate filed a complaint and motion for summary
disposition against Supply Corporation with the Federal Energy
Regulatory Commission ("FERC") under Sections 5(a) and 13 of the
Natural Gas Act. In pleadings, the complainants are asking FERC to
determine whether Supply Corporation's rates for natural gas
transportation service should be reduced. If FERC were to find,
after a hearing, that Supply Corporation's current rates should be
reduced, then FERC would issue an order establishing the rates that
would be applicable to transportation services performed after the
date of that FERC order. The complainants also ask FERC to
determine if Supply Corporation has the authority to make certain
gas sales and to order refunds if appropriate. "We will vigorously
oppose these actions. We believe our rates have been, since their
approval more than 10 years ago, fair, reasonable and in the public
interest," said David F. Smith, President of Supply Corporation.
"In addition, the gas sales called into question have been
disclosed to FERC and our investing public for as long as they have
been made. The FERC's regulations and our tariff provide for the
authority to engage in natural gas sales and we continue to believe
steadfastly that we are authorized to make these sales." Smith
added, "These filings were just received late Friday, and given
that the length of time it will take to resolve these matters is
uncertain, it would be premature at this time to predict any future
impact on Supply Corporation's business or financial performance."
Supply Corporation comprises the largest portion of the Pipeline
and Storage segment of National Fuel Gas Company. The operations of
Empire State Pipeline are also part of National Fuel Gas Company's
Pipeline and Storage segment, but Empire State Pipeline is not
cited in these pleadings. Supply Corporation owns and operates
2,972 miles of natural gas pipelines and 32 natural gas storage
fields, including four that are co-owned with non-affiliated
companies. National Fuel Gas Company is an integrated energy
company with $3.9 billion in assets comprised of the following five
operating segments: Utility, Pipeline and Storage, Exploration and
Production, Energy Marketing, and Timber. Additional information
about National Fuel Gas Company is available on its Internet Web
site: http://www.nationalfuelgas.com or through its investor
information service at 1-800-334-2188.
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