Gas Delivery Rates for Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of National Fuel Gas Distribution Corporation for Gas Service.

PSC Seeking Public Comment on Joint Proposal

The New York State Public Service Commission (Commission) seeks public comments on the Joint Rate Proposal filed by National Fuel Gas Distribution Corporation (NFG) and other parties including Department of Public Service Staff (DPS), Multiple Intervenors, People United for Sustainable Housing (PUSH) Buffalo, and the Utility Intervention Unit, N.Y.S. Department of State. 

Public Statement Hearings were held on February 24, 2014 at Buffalo and Eric County Public Library in Buffalo, NY and on February 25, 2014 at Niagara Falls Public Library in Niagara Falls, NY.

Comments received via alternative measures, together with all statements transcribed at the public statement hearings, become part of the record, and are posted for public viewing on the Commission’s website, here, and will be reported to the Commission for its consideration. A verbatim transcript of the hearings will be made for inclusion in the record.

Background
On April 19, 2013, the Public Service Commission (Commission) instituted a proceeding to examine the rates, charges, rules and regulations of National Fuel Gas Distribution Corporation. By order dated June 14, 2013, the Commission made NFG’s rates temporary, subject to refund. The disposition of any temporary rates found to have been excessive was to be determined in the second phase of this case. On July 26, 2013, NFG notified the Commission of its intent to enter into settlement negotiations with the parties. Those negotiations resulted in a Joint Proposal filed on December 6, 2013.

Summary of Joint Proposal
Under the terms of the Joint Proposal, the rates charged by NFGD would be frozen at current levels through September 30, 2015. In addition, NFGD will:
• Refund $3.73 million to residential customers and $1.77 million to non-residential customers.
• Provide $1.75 million in additional funding for weatherization projects for low income customers, and $250,000 for furnace replacements for Home Energy Assistance Program (HEAP) customers.
• Reduce accumulated deferrals by $3.7 million, to the benefit of customers.
The Joint Proposal would set a return on equity for NFGD of 9.1%, with a common equity ratio of 48%, and establish an earnings sharing mechanism that will allocate 50% of any earnings above 9.5%, and 80% of any earnings above 10.5% to customers. In addition, the Joint Proposal would:
• Establish a gas safety performance mechanism with a reduction in the authorized return on equity for failure to meet targets;
• Continue an existing service quality performance mechanism;
• Increase funding for low income programs and establish a monthly bill discount for HEAP customers of $12.50 per month from January through May;
• Fund an Area Development Program at an annual level of $1.25 million;
• Require NFGD to develop a pilot gas expansion plan to bring gas service to new customers; and
• Have NFGD convene a collaborative to explore the viability of expanding the Public Assistance for Cooperative Energy program to include more heating assistance customers.
A copy of the Commission Order, the Joint Proposal, and related documents may be accessed on the Web site of the Department of Public Service here.

The Commission may adopt, adopt with changes, or reject any of the terms of the pending proposal. The Commission also may adopt terms other than those proposed.

Other Methods for Commenting on the Case
• Via the Internet or In Writing: Public comments may be submitted electronically to Hon. Kathleen H. Burgess, Secretary, at [email protected], or by mail or delivery to, Secretary Burgess at the Department of Public Service, Three Empire State Plaza, Albany, New York 12223-1350. Comments may also be entered directly at the Commission’s webpage.  Comments should refer to “Case 13-G-0136 – National Fuel Gas Rates.” Many libraries offer free internet service.
• Toll-Free Opinion Line: Individuals may choose to submit comments by calling the Commission’s toll-free Opinion Line at 1-800-335-2120. This line is set up to receive in-state calls 24-hours a day. Callers should press “1” to leave comments regarding “Case 13-G-0136 – National Fuel Gas Rates.”

In order to ensure consideration prior to the Commission's vote, comments should be submitted, via any means described above, by March 15, 2014.

Click here for a copy of the fact sheet.