National Fuel wants to raise natural gas rates for the first time since 2007 to pay for infrastructure and technological upgrades by 8 percent.
The Williamsville-based utility – which also gas separate segments which develop and transport natural gas – announced today that it has filed a request with the New York State Public Service Commission for a rate increase that would amount to an extra 8 percent on an average monthly bill.
A National Fuel news release said the increase would help it pay for the continued system modernization of its pipeline infrastructure, as well as its customer technology systems. The release also said the increase would allow it to accelerate its pipeline replacements and to replace its mainframe-based customer information system.
The proposal will provide National Fuel with approximately $41.7 million in additional annual revenue from its nearly 527,000 utility customers across 14 counties.
National Fuel has been heavily affected by low energy prices over the past year, as a glut of demand has driven down costs. Shares dove from about $64 a year ago to about $38 in December, but have since recovered to about $56. The company lost $189 million in the first quarter.
On June 10. 2016. In spite of losses the board of director raised dividend by 2.5 percent- the 46th straight year that the Amherst energy company has increased it payments to shareholders.
National fuel increased its quarterly dividend to 40.5 cent per share at the same time and maintained its President and Chief Executives pay at: $ 2,269,852 salary plus stock options.
On June 28, 2016. A public hearing will be held with the Public Service Commission to review the request for a rate increase at: The Amherst Municipal building located at: 5583 Main Street, Amherst, NY. At 7pm. Public input is desired.