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Pennsylvania residents are preparing for a significant increase in their gas bills as National Fuel Gas Distribution Corporation has proposed a rate hike of nearly 18.5 percent. If approved by the Pennsylvania Public Utility Commission (PUC), the increase would take effect on August 1, 2025, impacting approximately 214,000 residents. The typical residential customer, using 96,500 cubic feet of gas annually, would see their monthly bill rise from $73.10 to $86.59, an increase of about $13.49 per month.
The proposed rate hike is attributed to projected increases in the costs associated with purchasing and transmitting natural gas. According to National Fuel's filing, the New York Mercantile Exchange (NYMEX) market prices for natural gas are expected to rise above $4.00 per MMBtu, compared to an average of $3.03 per MMBtu for the previous year.
Before the rate increase can take effect, the PUC must review and approve the proposal. The commission will evaluate the request and require National Fuel to provide evidence justifying the need for the increase. The PUC has the authority to approve, deny, or adjust the proposed rates. In some cases, they may even require utility providers to lower their prices.
In addition to the proposed rate increase, a Distribution System Improvement Charge (DSIC) will be implemented, starting today, to support infrastructure improvements. This charge is expected to add approximately 17 cents per month to the average residential customer's bill, as reported by Meadville Tribune.
Residents are advised to stay informed about the PUC's decision, which will determine the final outcome of the proposed rate hike.
