Notice of Proposed Rate Change for New York | National Fuel Gas Company

Notice of Proposed Rate Change for New York

Notice of Proposed Rate Change for New York

On October 31, 2023, National Fuel Gas Distribution Corporation filed a request with the New York State Public Service Commission (the Commission) that if approved would increase the bill of the average residential customer on the budget plan by approximately $11.31, to $93.98 per month, assuming normal weather.

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Only the second requested rate increase in the last 15 years.

National Fuel is proud of our long-standing record of keeping prices affordable, resulting in some of the lowest utility delivery rates in the entire Northeast U.S. Careful planning and cost management, as well as our proximity to low-cost natural gas supplies being produced in the Appalachian region of Pennsylvania, Ohio and West Virginia, have allowed us to hold base delivery rates stable for nearly seven years. In fact, Western New York customer bills have actually decreased since 2008, as shown in the chart below.

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If approved, the increase will likely begin in Fall 2024.

The increase will be applied to the Delivery Service Charge portion of the bill and, if approved, will go into effect on or about October 1, 2024, assuming the typical Commission review period, which typically takes about 11 months and will include public comment hearings, to be scheduled by the Commission. Until then, National Fuel’s customer delivery rates will continue unchanged.

Here’s why the increase is needed.

  • For critical investments to infrastructure and to offset persistently high inflation on the cost of labor, materials and services.
  • To help us further align our long-term strategy with New York’s emissions reduction goals.
  • For continued investment in system safety, reliability, and greenhouse gas emissions reductions. Since 2017, the Company has accelerated the removal and replacement of pipelines to average more than 110 miles of pipe per year. As a result, it is on track to achieve a 90% reduction in emissions by 2035.
  • To implement elements of our 20-year Long-Term Plan, as required the Commission, and pursue decarbonization actions that align with the goals of New York State’s Climate Leadership and Community Protection Act, including:
    • A hybrid heating pilot program to understand the impacts of residential heating and cooling electrification. The pilot will gauge upfront consumer costs associated with retrofitting existing residences as compared to full electrification.
    • A gas demand response pilot program aimed at reducing peak consumption by attempting to shift or eliminate customer usage during constrained peak periods, which typically occur during the coldest days and hours of the year.
    • Research, development and demonstration funding toward projects that advance decarbonization actions and technologies.
    • Two separate pilot programs relating to renewable natural gas and certified natural gas that will help decarbonize our gas supply.
    • Expansion of the workforce to implement these initiatives.

We’re here with support.

Customers who are having difficulty paying bills should call us at 1-800-365-3234 to discuss available payment plans and assistance programs. Nearly $1,400 in funds may be available for each eligible customer.

Thank you for taking the time to learn more about our rate request.

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