New York Public Service Commission Approves New Rates for New York Utility Business

Core Viewpoint - National Fuel Gas Distribution Corporation has received approval for a three-year rate settlement from the New York Public Service Commission, with new rates effective January 1, 2025, marking the first increase since 2017 and the second in 16 years [1][3]. Financial Outcomes - The settlement reflects a rate base of $1.04 billion in the first year, a return on equity of 9.7%, and an equity ratio of 48% [4]. - The revenue requirement will increase by $57 million in fiscal 2025, $73 million in fiscal 2026 (an increase of $16 million), and $86 million in fiscal 2027 (an increase of $13 million) [4]. - The overall rate of return is projected to rise from 7.3% in fiscal 2025 to 7.5% in fiscal 2027 [8]. Rate Mechanisms - The settlement continues existing rate mechanisms such as weather normalization and revenue decoupling, and introduces a new uncollectible expense tracker for the first two rate years [5]. - The rate increase will support investments in pipeline infrastructure and workforce, addressing operational costs and advancing decarbonization initiatives [2][6]. Timing and Recovery - A make-whole provision allows the company to recover the impact of higher rates from October 1, 2024, through January 1, 2025, with earnings recovery recognized in fiscal 2025 [7]. Company Overview - National Fuel is a diversified energy company operating across four business segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility [10].