Utility Files Increase To Merchant Function Charge & Bypassable Procurement Charge

As part of a new rate case in Pennsylvania, National Fuel Gas Distribution has proposed a change in the merchant function charge (MFC) Under the proposed change, for customers receiving service in the Residential classification, the MFC would equal 2.6879% times the Natural Gas Supply Charge and the Gas Adjustment Clause as calculated for Rider A. This is higher than the current residential MFC of 2.2301%

Using current supply and adjustment clause rates, the residential MFC percentage would result in an MFC volumetric charge of $0.2349 per Mcf, up from the current $0.1949 per Mcf

For customers receiving service in the Non-Residential classifications, the MFC shall equal 0.5097% times the Natural Gas Supply Charge and Gas Adjustment Clause as calculated for Rider A. This is higher than the current non-residential MFC of 0.2285%

Using current supply and adjustment clause rates, the non-residential MFC percentage would result in an MFC volumetric charge of $0.0445 per Mcf, up from the current $0.0200 per Mcf

Additionally, National Fuel Gas Distribution filed an update to the Gas Procurement Charge (GPC)

Under the rate filing, the GPC to be included in the Natural Gas Supply Charge would be $0.1149 Mcf, up from the current GPC of $0.1050