"This decrease reflects National Fuel's ability to purchase lower cost gas supplies, the majority of which comes from northeast production," said Sandra James, Director of Corporate Communications. "By law, National Fuel cannot make a profit on the natural gas sold to our customers. What we pay for our gas supply is what we must pass along to our customers, dollar for dollar."
National Fuel projects annual Gas Supply Charges each year on August 1 and can then update those charges through quarterly reconciliation of actual costs against projections. Any necessary updates can be made on November 1, February 1 and May 1. National Fuel is required by law to pass any increase or decrease in Gas Supply Charges on to customers with no mark-up or profit. The Gas Supply Charge also includes all the charges the Company must pay to transport and store gas for its customers. As a result, the Gas Supply Charges on a customer's bill will never exactly match the spot market price of gas, which reflects only the current daily price of the commodity.
In contrast, Delivery Service Charges, or the cost of delivering safe, reliable natural gas to customers, represent the Company's cost of doing business. National Fuel's Delivery Service Charges have remained the same for the Company's Pennsylvania customers since January 2007. Delivery Service Charges are regulated by and ultimately determined by the Pennsylvania Public Utility Commission, ensuring that established rates are just and reasonable. Our employees continuously work hard to keep operating costs under control so that gas bills remain low for our customers.
Customers are reminded that National Fuel offers a number of programs to help those who are having trouble paying their bills. To find out more about those programs, customers are invited to visit the Company's web site at www.nationalfuelgas.com or call National Fuel at 1-800-365-3234.
National Fuel serves approximately 213,000 customers in 14 counties in northwestern Pennsylvania.
Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.