Settlement Reached in Delivery Service Charge Rate Case For National Fuel's Pennsylvania Division
October 12 2006 - 4:15PM
Business Wire
A proposed settlement among the parties involved in the
Pennsylvania division of National Fuel Gas Distribution
Corporation�s request for an increase in Delivery Service Charges
has been signed and delivered to the Pennsylvania Public Utility
Commission�s (PUC) Administrative Law Judges. National Fuel Gas
Distribution Corporation is the utility division of National Fuel
Gas Company (NYSE: NFG). Under the terms of the settlement, the
utility�s Delivery Service Charges will increase by $14.3 million
or about 4 percent of total revenue.* This change will increase the
average bill of a typical Pennsylvania residential customer using
83 hundred cubic feet of gas per month by $5.39, from $120.08 per
month to $125.47 per month, beginning January 1, 2007.* The major
parties in the case - the PUC�s Office of Trial Staff, the Office
of Consumer Advocate, the Office of Small Business Advocate, the
Community Action Association of Pennsylvania and National Fuel Gas
Distribution Corporation - have reached an agreement that modestly
increases customer bills. Prior to this case National Fuel has
increased Delivery Service Charges less than 5 percent since 1995.
The Company�s current residential customer rate structure will
remain unchanged. As part of the settlement, National Fuel Gas
Distribution Corporation has withdrawn its proposed changes to the
Customer Charge, as well as the proposed Energy Efficiency feature
(revenue decoupling), that would have adjusted customer rates if
overall usage levels were different than the projected usage levels
on which the rates were based. National Fuel Gas Distribution
Corporation supports the statewide generic proceeding that the PUC
announced at its meeting held on September 28, 2006. The generic
proceeding will investigate efforts that energy utilities can take
to help their customers conserve energy or use it more efficiently.
The proceeding will also examine ratemaking mechanisms (including
revenue decoupling mechanisms) that might be appropriate to remove
any disincentives that would keep utilities in the Commonwealth
from promoting customer conservation. The proposed settlement must
still be reviewed and approved by the PUC. If approved as
submitted, the utility will implement the new rates effective
January 1, 2007, and will be precluded from filing for another
Delivery Service Cost rate increase until January 2008.* National
Fuel Gas Distribution Corporation serves over 215,000 utility
customers in 14 counties of northwestern Pennsylvania. *Certain
statements contained herein, including those which are designated
with an asterisk (�*�) and those which use words such as
�anticipates,� �estimates,� �expects,� �intends,� �plans,�
�predicts,� �projects,� and similar expressions, are
�forward-looking statements� as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or
outcomes to differ materially from those expressed in the
forward-looking statements. The Company�s expectations, beliefs and
projections contained herein are expressed in good faith and are
believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the
following are important factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements: governmental/regulatory actions, initiatives and
proceedings, including those involving acquisitions, financings,
rate cases (which address, among other things, allowed rates of
return, rate design and retained gas), affiliate relationships,
industry structure, franchise renewal, and environmental/safety
requirements. The Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. A proposed settlement among the parties involved in the
Pennsylvania division of National Fuel Gas Distribution
Corporation's request for an increase in Delivery Service Charges
has been signed and delivered to the Pennsylvania Public Utility
Commission's (PUC) Administrative Law Judges. National Fuel Gas
Distribution Corporation is the utility division of National Fuel
Gas Company (NYSE: NFG). Under the terms of the settlement, the
utility's Delivery Service Charges will increase by $14.3 million
or about 4 percent of total revenue.* This change will increase the
average bill of a typical Pennsylvania residential customer using
83 hundred cubic feet of gas per month by $5.39, from $120.08 per
month to $125.47 per month, beginning January 1, 2007.* The major
parties in the case - the PUC's Office of Trial Staff, the Office
of Consumer Advocate, the Office of Small Business Advocate, the
Community Action Association of Pennsylvania and National Fuel Gas
Distribution Corporation - have reached an agreement that modestly
increases customer bills. Prior to this case National Fuel has
increased Delivery Service Charges less than 5 percent since 1995.
The Company's current residential customer rate structure will
remain unchanged. As part of the settlement, National Fuel Gas
Distribution Corporation has withdrawn its proposed changes to the
Customer Charge, as well as the proposed Energy Efficiency feature
(revenue decoupling), that would have adjusted customer rates if
overall usage levels were different than the projected usage levels
on which the rates were based. National Fuel Gas Distribution
Corporation supports the statewide generic proceeding that the PUC
announced at its meeting held on September 28, 2006. The generic
proceeding will investigate efforts that energy utilities can take
to help their customers conserve energy or use it more efficiently.
The proceeding will also examine ratemaking mechanisms (including
revenue decoupling mechanisms) that might be appropriate to remove
any disincentives that would keep utilities in the Commonwealth
from promoting customer conservation. The proposed settlement must
still be reviewed and approved by the PUC. If approved as
submitted, the utility will implement the new rates effective
January 1, 2007, and will be precluded from filing for another
Delivery Service Cost rate increase until January 2008.* National
Fuel Gas Distribution Corporation serves over 215,000 utility
customers in 14 counties of northwestern Pennsylvania. *Certain
statements contained herein, including those which are designated
with an asterisk ("*") and those which use words such as
"anticipates," "estimates," "expects," "intends," "plans,"
"predicts," "projects," and similar expressions, are
"forward-looking statements" as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or
outcomes to differ materially from those expressed in the
forward-looking statements. The Company's expectations, beliefs and
projections contained herein are expressed in good faith and are
believed to have a reasonable basis, but there can be no assurance
that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the
following are important factors that could cause actual results to
differ materially from those discussed in the forward-looking
statements: governmental/regulatory actions, initiatives and
proceedings, including those involving acquisitions, financings,
rate cases (which address, among other things, allowed rates of
return, rate design and retained gas), affiliate relationships,
industry structure, franchise renewal, and environmental/safety
requirements. The Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
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