On June 1, 2006, National Fuel Gas Company (NYSE: NFG) ("National Fuel") announced that National Fuel Gas Distribution Corporation ("Distribution"), the Utility segment of National Fuel, filed a request with the Pennsylvania Public Utility Commission (PUC) to increase annual operating revenues by $25,892,000 to cover increases in the cost of providing service to the Utility's customers in northwestern Pennsylvania. The Pennsylvania division serves approximately 214,000 customers in 14 counties in northwestern Pennsylvania. If approved as filed, the average bill for a typical residential customer using 83 hundred cubic feet of gas per month would increase $9.95, from $143.97 to $153.92 per month or by 6.9% and would be effective July 30, 2006. The requested increase would impact the Delivery Service Charges portion of a customer's bill. Several factors are driving this request. They include increases in the costs associated with Distribution's ongoing construction program as well as increases in difficult-to-control costs such as uncollectible accounts. The PUC will examine the requested rate increase, and may grant all, some or none of the request. Under normal circumstances, the proposed increase in rates would be suspended by the PUC for up to seven months to become effective about February 28, 2007. National Fuel Gas Distribution Corporation, the Utility segment of National Fuel Gas Company, provides natural gas service to more than 500,000 customers in western New York and more than 200,000 customers in northwestern Pennsylvania. For more information about the proposed rate increase, visit www.nationalfuelgas.com and see 'Customer Publications' under the 'For Home' section of the website. National Fuel 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 is available at www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.
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