PSC Cuts NFG Utility Rate Increase Request

ALBANY — The New York State Public Service Commission (Commission) today adopted a three-year rate plan for gas service provided by National Fuel Gas Distribution Corporation (NFG).  The three-year rate plan was supported by the company, the Department of Public Service (Department), a group representing large commercial customers, the International Brotherhood of Electrical Workers (IBEW) Local Union 2199, and IBEW Local Union 2154.  NFG serves about 527,000 residential and commercial customers in 14 Western New York counties.

“With this three-year rate plan, the company will be able to continue to provide its customers safe and reliable gas service, as well as continuing to work on developing a cleaner energy distribution system,” said Commission Chair Rory M. Christian.  “Adoption of this rate plan ensures critical investments are made for the continuation of safe and reliable service.”

NFG initially had requested a first-year increase in annual gas delivery revenues of approximately $88.8 million (30.8 percent increase in base delivery revenues or 11.1 percent increase in total revenues) for the 12-month period ending September 30, 2025.  Instead of granting the full amount, the Commission adopted a first year levelized increase of only $37.1 million, less than half of what the company originally requested.

Had NFG’s requested first-year rate increase been approved, an average residential heating customer would have seen their total monthly bill increase by $11.31, a rise of 13.7 percent.  With today’s decision, in the first-rate year, an average residential heating customer’s total monthly bill will go up $6.57, or 8 percent, to $89.24. The company will begin billing the new rates January 1, 2025.

In addition to lowering the rate increase, key elements of the Commission’s decision include the reopening of three walk-in customer service centers in Buffalo, Cheektowaga and Jamestown; language assistance for non-English speaking customers; the establishment of gas safety and customer service performance metrics; the formalization of cold weather protections for residential customers; and enhancement of the company’s energy affordability program.  The Commission’s decision incorporates provisions to further the goals and targets in support of the Climate Leadership and Community Protection Act through removal of leak-prone pipe, expansion of NFG’s residential methane detection program, the assessment of non-pipes alternatives, and modifications to the economic development programs and energy efficiency measures.

The Commission was able to substantially reduce NFG’s request through the transparent and comprehensive review of all cost drivers by Department staff and other parties.  The Commission also examined a voluminous record, including testimony of the parties and 379 public comments, received both directly and at the four public statement hearings that were conducted.

NFG has operated under a Commission-approved rate plan since 2017, making this the first rate proceeding for the company in seven years.  The approved three-year rate plan authorizes levelized revenue increases of $37.1 million in the first year, $35.7 million in the second year, and $36.5 million in in the third year.

The Commission’s decision recognizes the results of a recent Department investigation into the company's political advocacy expenditures and requires enhanced reporting of employee work time spent on advocacy-related tasks.

Today’s decision may be obtained by going to the Commission Documents section of the Commission’s website at www.dps.ny.gov and entering Case Number 23-G-0627 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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