National Fuel Gas Co. will pay $7.5 million to customers and homeowners as part of a settlement resulting from what the Public Service Commission described as “excess” earnings.
A portion of the money will be returned to 516,000 commercial and residential customers in Western New York, a portion will pay for energy efficiency upgrades for homeowners.
Residential customers will receive a one-time bill credit of $7.74, while commercial customers will receive credits of varying amounts.
The PSC, in reviewing National Fuel’s rates and earnings, said it found that the utility’s earnings were higher than targets the commission established in a rate plan that took effect in 2008. National Fuel has said that its operations have become more efficient, which has contributed to their profits. Rates have not increased since 2008.
The utility had tried to pre-emptively prevent state regulators from refunding “excess” profits to its customers, but the company’s request was denied in late October.
Here is how the settlement breaks down:
• $1.77 million will be refunded to commercial customers.
• $3.72 million will be refunded to residential customers.
• $1.75 million for weatherization upgrades for low-income residential rate payers, which will be administered by the state’s EmPower program. The program provides funding for such things as new doors, energy-efficient windows and insulation.
• $250,000 for a furnace replacement program for homeowners.
The settlement was announced by State Sen. Tim Kennedy, Assemblyman Sean Ryan and PUSH Buffalo officials at the agency’s Massachusetts Avenue office Friday afternoon.
“The $10 million settlement with National Fuel is a major step in the effort to hold utilities accountable to us, the ratepayers,” said Aaron Bartley, executive director of PUSH Buffalo.
email: jterreri@buffnews.com
A portion of the money will be returned to 516,000 commercial and residential customers in Western New York, a portion will pay for energy efficiency upgrades for homeowners.
Residential customers will receive a one-time bill credit of $7.74, while commercial customers will receive credits of varying amounts.
The PSC, in reviewing National Fuel’s rates and earnings, said it found that the utility’s earnings were higher than targets the commission established in a rate plan that took effect in 2008. National Fuel has said that its operations have become more efficient, which has contributed to their profits. Rates have not increased since 2008.
The utility had tried to pre-emptively prevent state regulators from refunding “excess” profits to its customers, but the company’s request was denied in late October.
Here is how the settlement breaks down:
• $1.77 million will be refunded to commercial customers.
• $3.72 million will be refunded to residential customers.
• $1.75 million for weatherization upgrades for low-income residential rate payers, which will be administered by the state’s EmPower program. The program provides funding for such things as new doors, energy-efficient windows and insulation.
• $250,000 for a furnace replacement program for homeowners.
The settlement was announced by State Sen. Tim Kennedy, Assemblyman Sean Ryan and PUSH Buffalo officials at the agency’s Massachusetts Avenue office Friday afternoon.
“The $10 million settlement with National Fuel is a major step in the effort to hold utilities accountable to us, the ratepayers,” said Aaron Bartley, executive director of PUSH Buffalo.
email: jterreri@buffnews.com