National Fuel Gas Distribution Corporation (National Fuel or Company) has submitted its annual Purchased Gas Cost Filing as required by the Pennsylvania Public Utility Commission (PUC). The filing includes a projection of the cost of gas supplies that the Company expects to purchase and deliver to customers from Aug. 1, 2025, through July 31, 2026. For the period, National Fuel is projecting an increase in overall gas supply charges totaling approximately $161.90 per year. If approved as filed, the monthly bill of a typical residential customer with an annual usage of 96,500 cubic feet of gas would increase from $73.10 to $86.59 per month or by 18.46%, starting Aug. 1, 2025.
The primary reason for this forecasted increase in gas supply charges is that costs associated with the purchase and transmission of natural gas are projected to be higher than those reflected in current rates. The New York Mercantile Exchange (NYMEX) market prices for natural gas next winter are projected to rise above $4.00 per MMBtu, whereas market prices for the twelve-months ended November 30, 2024, have averaged $3.03 per MMbtu.
National Fuel is required by law to shop for the most reasonably priced gas and maintain an adequate supply for more than 214,000 Pennsylvania customers. As market prices fluctuate, National Fuel is required to pass those charges to customers, without any mark-up or discount.
Customers are advised that this forecast is for prices to be experienced next winter (2025-2026) and must be thoroughly reviewed and approved by the PUC before becoming effective. Additionally, after approval, pricing will be adjusted on a quarterly basis to reflect any changes in the Company’s current projections and actual market prices at the time of the update.
Distribution System Improvement Charge
Effective Jan. 1, 2025, a Distribution System Improvement Charge (DSIC) will be included on customer bills. The DSIC supports the improvement and replacement of utility infrastructure, providing customers with enhanced system safety, service and reliability. The average residential customer can expect a $0.17 per month charge based upon the initial DSIC rate effective through March 2025. The DSIC will be updated on a quarterly basis and is limited to 5% of the delivery service charge, the non-gas cost portion of the bill.
Winter weather and colder temperatures can result in bills that present a hardship for some customers. Customers who are having trouble paying their bills should call National Fuel Customer Service at 1-800-365-3234 to discuss payment assistance programs.
As always, if you Smell Gas, Leave Fast: if a rotten-egg natural gas odor is present, leave the premises immediately and call National Fuel’s emergency line at, 1-800-444-3130, from a different location. If you smell an odor of gas outdoors, leave the area immediately, call National Fuel’s emergency number and provide the address nearest to the site of the odor. To learn more about natural gas safety, visit www.nationalfuel.com/utility/gas-safety/.
National Fuel Gas Distribution Corporation is the Utility segment of National Fuel Gas Company, a diversified energy company that is engaged in a number of natural gas-related activities. The Utility provides natural gas service for 2.2 million residents in Western New York and Northwestern Pennsylvania. For more information, visit www.nationalfuel.com.