National Fuel Pushing ANOTHER Rate Hike While Lobbying To Block Legislation That Would Lower Costs for NYers

BUFFALO, NY (10/30/2024) (readMedia)-- Yesterday, at a hearing before the Public Service Commission (PSC) in Albany, National Fuel Gas continued to advance efforts to secure a dramatic rate increase that would force Western New York families to pay nearly 14% more for heat - all while the company continues to lobby against legislation that would save ratepayers money. The company has been fighting against the NY HEAT Act, which would block National Fuel and other utilities from continuing to expand their gas pipelines on their customers' dime. If passed into law, NY HEAT would guarantee affordable energy bills for utility customers by capping energy costs at 6% of household income. National Fuel has also used ratepayer dollars to ask customers to lobby in favor of their long term gas plan, which is designed to keep their customers hooked on gas despite New York's Climate Law requiring a transition off fossil fuels.

"National Fuel wants to force Western New Yorkers to pay dramatically more for an essential service - home heating - that's already too expensive while fighting tooth and nail to stop the very legislation that would save everyday families money on their energy," said Clarke Gocker, Sr. Director of Movement Building at PUSH Buffalo. "The PSC needs to stand with our communities and oppose National Fuel's rate hike. And Albany lawmakers must pass the NY HEAT Act when they return to session in order to protect our communities from the energy affordability crisis, check utility greed, and uphold the Climate Law. We got close to passing the bill last year despite National Fuel's heavy spending, and now we need lawmakers to finish the job!"

The current rate hike proposal before the PSC, if adopted, would greenlight irresponsible levels of new investment in gas infrastructure to the tune of $615 million over three years. As more and more households transition off the gas system in favor of renewable heating and cooling alternatives in the coming years, these investments will represent stranded assets that will be increasingly expensive to maintain. Those higher costs will disproportionately impact poor and working class households stuck on the gas system and already show up in the proposal under consideration. Fixed customer costs would increase from $15.54 to $22.50 over the next three years alone if the PSC approves this rate hike. Meanwhile, as of August 2024, over 54,000 National Fuel customers were in arrears and facing the threat of service shut-offs. The current proposal also calls for an excessive return on equity - 9.7% - that would boost the utility's profits and further enrich private investors. From 2021 to 2023, National Fuel raked in over $1.4 billion in profit and paid out over $500 million in dividends to shareholders at a lower rate of return on equity.

Background

The NY HEAT Act, which passed in the NYS Senate last year, would begin New York's transition off the outdated, expensive fracked gas system and limit the amount families have to pay for energy relative to their income, saving low- and middle-income families hundreds each month. In Erie County, the NY HEAT Act could save the 24% of households with high energy cost burdens an average of $109 per month. The bill would also reduce future rate hikes driven by billions in spending for new pipes, like the one proposed by National Fuel. Governor Hochul embraced some parts of the NY HEAT Act, but the Assembly failed to deliver relief for families before the end of last year's session.

National Fuel Gas has continued to spend big to protect its profits and block legislation that would help struggling New Yorkers and prevent catastrophic climate change. Despite initial opposition from utilities statewide, National Fuel Gas is the only remaining utility provider to actively lobby against the NY HEAT Act and was caught spending ratepayer money to advocate against the All-Electric Building Act and the NY HEAT Act - policies that are in ratepayers' best interests. NFG has also helped set up a front group with other major fossil fuel companies called "New Yorkers for Affordable Energy" to spread misinformation about New York's climate policies. The President of National Fuel Gas recently served as the chairperson of the Business Council of New York State, which announced in October 2023 a $1 million ad campaign urging Governor Hochul to roll back New York's nation-leading climate law.