National Fuel Gas : Predicts 2016-17 Winter Heating Costs Likely to Stay Low

6363 Main Street, Williamsville, N.Y. 14221

1-800-634-5440 | www.nationalfuelgas.com

RELEASE DATE: Oct. 6, 2016

Media inquiries please contact:

Karen L. Merkel, 716-857-7654

(Oct. 7, 2016) WILLIAMSVILLE, N.Y. - Cooler nights, less day light and falling leaves are sure signs that the weather is changing across Western New York. As customary in this region, the upcoming winter means plenty of unpredictable weather - a snowstorm here, a quick melt there, hail, rain, ice and everything in-between. The one thing that is certain: Homes will need heat and National Fuel Gas Distribution Corporation's (National Fuel or the Utility) winter heating season bill forecast brings good news and bad news.

The cost of keeping warm this winter, based on the current forecast for the months of November through March, will remain at a record low level. On average, residential heating customers should expect their five-month winter bills to total $497, provided the weather is more typical of a Western New York winter. Last year's second warmest winter ever on record for this region, with temperatures that were 17.8 percent warmer than normal, resulted in record low customer winter heating season bills that averaged $381. Comparatively, the previous winters from 2014, 2013 and 2012 ranged from $635, $808 and $586 for the five-month periods. As a reminder, last winter Buffalo was without measurable snow until Dec. 17, 2015, a full two weeks later than the previous latest date for the first seasonal snowfall.

"Lower winter heating season bills seem destined to repeat this winter across Western New York," said Karen L. Merkel, spokesperson for National Fuel. "With the exception of last year's record warm winter, the upcoming winter is forecasted to have the lowest winter heating season bill in the last 17 years, even lower than 2011-12 which featured the region's warmest winter ever on record with temperatures 22.3 percent warmer than usual. That season's winter heating season bill averaged $615."

While the commodity price of natural gas is anticipated to creep up on the New York Mercantile Exchange to $3.30 a thousand cubic feet as winter rolls in, National Fuel utilizes cost- conscious gas procurement procedures in which nearly half of the natural gas that will be used this winter was purchased in the summer months. Pennsylvania shale production was selling at less than

$1.50 this summer. This time last year, natural gas commodity gas prices hovered between $2.59 and $2.89 a thousand cubic feet. Diverse contractual and pricing arrangements allow National Fuel's gas supply management team to purchase natural gas at the best available market price.

Local demand for natural gas is currently being met by hydraulically fractured shale in neighboring states including Pennsylvania, despite the fact that no shale production is taking place in New York state.

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"Certainly the weather has a major effect on customer bills as the lower the temperatures, the higher the thermostats go for more prolonged periods of time," said Merkel.

For those needing some help when it comes to heating costs, the federally-funded Home Energy Assistance Program (HEAP) provides payment-challenged families and individuals with financial assistance on a first-come, first-served basis, based on income guidelines. HEAP will open across New York state on Nov. 14. Visit www.HEAPhelps.com or contact 1-877-443-2743 to check eligibility.

A quick call to customer service can provide information on the following programs: Neighbor For Neighbor Heat Fund is open year round and helps qualified customers, aged 55 years or older, or have a certified medical condition, or are disabled, or are currently receiving unemployment benefits to prevent an energy emergency; Low-Income Customer Affordability Assistance Program offers stable bills, reduced rates and debt forgiveness; a Deferred Payment Agreement allows the potential to negotiate a repayment plan in the event of a problem or special circumstance; Special Protections is applicable for households where all residents are aged 62 years or older, 18 years or younger, blind or disabled. Customer assistance is available each weekday from 7 a.m. to 6 p.m. by contacting 1-800-365-3234.

Numerous programs are available to help individuals who struggle to make their payments, and the Utility encourages its customers to contact a customer assistance representative to discuss their personal situation. For customers who want to have level, predictable month gas payments this winter, National Fuel suggests budget plan billing as a way to stabilize monthly heating bills.

Information is available on the Utility's website at www.nationalfuelgas.com.

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 approximately 738,000 customers in Western New York and northwestern Pennsylvania. To learn more about natural gas safety, visit www.NationalFuelGas.com.

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