National Fuel Gas : Adjusts Gas Supply Charges in Pennsylvania

PO BOX 2081 / 1100 STATE STREET / ERIE, PA 16512

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The main driver of the increase is projected higher natural gas supply charges. Prices experienced over the last six months were extremely low due to the abnormally warm weather experienced this past winter. Market prices of natural gas continue to remain low when compared to the previous 10 years due in large part to the large supply of Marcellus Shale gas. Nearly all of the gas consumed by National Fuel utility customers comes from Northeast-produced shale gas. When comparing rates to recent years, this is an increase of 15 percent over Aug. 1, 2015, and a 12 percent decrease over Aug.

2014 rates. Within the past 5 years, rates have decreased overall by 24 percent.

National Fuel's price-to-compare gas commodity charge also will increase to $0.43550 per ccf. This reference point, detailed on the National Fuel bill under Gas Supply Charges, is important for customers who are shopping for an alternate gas supplier.

Gas supply charges are passed along to customers dollar for dollar, with no mark-up or profit to National Fuel. Pennsylvania utility companies are permitted to update gas supply charges on a quarterly basis to reflect changes in the market price of natural gas.

As the result of aggressive cost-containment and productivity efforts, National Fuel hasn't sought to increase the delivery service charges paid by its residential customers in more than 9 years, even while consistent investments in pipeline safety and system modernization have continued.

Customers who are having trouble paying their bills are encouraged to call National Fuel Customer Service at 1-800-365- 3234 to discuss available payment programs and services.

This digging season, National Fuel reminds homeowners and professional contractors to Call Before You Dig at least 3 and no more than 10 business days before starting any excavation projects. Pennsylvania state law requires residents to call 811 - a free service - prior to digging in order to have underground utility lines marked and prevent accidental damage and possible injury.

National Fuel cautions customers that gas leaks can be serious and to leave the premises and call 1-800-444-3130 when a rotten-egg natural-gas smell is present. To learn more about natural gas safety, visit www.nationalfuelgas.com/forhome/gassafety.aspx.

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 to nearly 740,000 customers in Western New York and Northwestern Pennsylvania. For more information, visit www.nationalfuelgas.com.