HARRISBURG, Pa. (Erie News Now) – The Pennsylvania Public Utility Commission (PUC) on Wednesday approved National Fuel’s request to reduce rates and provide refunds to customers to return $50 million in excess funds that were collected to cover benefits for retired employees.
Residential, commercial and industrial customers will be eligible for the savings.
A one-time bill credit will be $100 for current residential customers and $250 for commercial customers.
The average annual savings from rate reductions will be $53 for residential customers and $106 for commercial customers.
The ongoing savings on monthly bills will consist of a reduction in base delivery rates and a temporary refund rate that would last for five years.
The savings are expected to start Oct. 1.
National Fuel determined it no longer needs to collect money from customers to cover future healthcare benefits for union and supervisory employees upon retirement. Instead, it can pay the other post-employment benefits with existing funds and return the money.
The company said it would normally rate until the next rate change to return the money back to customers, but it wants to provide relief ahead of the winter season and help families and businesses negatively impacted by the pandemic.
National Fuel serves nearly 214,000 customers in 14 counties across northwestern Pennsylvania.
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