National Fuel Gas Distribution Corp. is increasing the rate at which it charges customers for gas, with the bill of a typical residential customer expected to rise by around $6.
The company announced Friday that it had submitted its quarterly adjustment to Pennsylvania Public Utility Commission, with the changes to become effective Monday. National Fuel said the monthly bill of a customer with an annual usage of 101,100 cubic feet of gas will rise from $78.72 to $85.16, an increase of $6.44.
"The rate adjustment is primarily due to higher market prices for natural gas, which have increased the cost of natural gas supplies that National Fuel purchases for customers," the company said in a news release.
Changes to gas supply costs are passed along to customers dollar for dollar. National Fuel cannot mark up or make a profit on the gas it supplies.
Utility companies in Pennsylvania can update their gas supply charges on a quarterly basis to reflect the market. The next time for a possible adjustment will be Feb. 1.
National Fuel said although gas prices have been trending higher compared to the prior two years, its strategy and use of storage gas should limit any future volatility or price spikes that may result from a colder-than-normal winter or cold spike.
National Fuel's price-to-compare gas commodity charge will also increase to $0.63333 per 100 cubic feet (ccf).