National Fuels' laughable price cut

In a press release issued yesterday, National Fuel Gas Co. said:

Natural Gas Prices to Go Down for Pennsylvania Customers

National Fuel Gas Distribution Corporation has filed new rates with the Pennsylvania Public Utility Commission for a quarterly adjustment to gas costs to be effective November 1, 2007, which results in a decrease of 2.6 percent. Once implemented, the adjusted gas costs will lower the annual bill for a typical residential customer from $1,547.46 to $1,506.98. According to Nancy Taylor, Senior Manager of Corporate Communications, “This mechanism is used to reflect changes in the market price of natural gas purchased by the company for its customers during the course of the year.

Here’s how the Erie Times-News reported this earthshaking news event today.

National Fuel lowers rates

Natural gas bills are going down. National Fuel Gas Distribution Corp. has announced a 2.6 percent decrease in the cost of gas.

The rate decrease, which takes effect today, would lower the annual bill for a residential customer from $1,547.46 to $1,506.98.

Utility spokeswoman Nancy Taylor said, “This mechanism is used to reflect changes in the market price of natural gas purchased by the company for its customers during the course of the year.”

— Staff report

Staff report? All the “staff” did was copy the press release – the lowest form of journalism – practically verbatim. No mention of the fact that back on August 1, NFG raised prices by some 22 percent.

One person who filed a comment on the article, T. Boone from Colliersville, Tennessee, said it all:

“Is it too much to ask for the reporter of this story to give us some useful information? What is the cost of gas per mcf or ccf? How does that cost compare to the true market value (as posted on NYMEX)? How can National Fuel's marketing affiliate sell gas to customers (on a firm basis) for a dollar below what rate payers are charged? Why do you simply publish the press release and not ask questions? NFG will say "we do not mark up the cost of gas", and you accept that as a fact. Could they buy gas at better rates for us?”

Since it’s obvious the Times-News doesn’t have the slightest bit of expertise on natural gas pricing, the very least the “staff” could have done was to call Ken Springirth for his take on this laughable price reduction. The “staff” didn’t have the modicum of initiative needed to take that simple step.