ERIE, PA., October 12 /CNW/ - 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.(x) 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.(x)
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Corporation has withdrawn its proposed changes to the Customer Charge, as well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.(x)
National Fuel Gas Distribution Corporation serves over 215,000 utility
customers in 14 counties of northwestern Pennsylvania.
(x)Certain statements contained herein, including those which are
designated with an asterisk ("(x)") 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.
