ERIE, Pa. - National Fuel Gas Distribution Corp., whose service area includes Mercer and Lawrence Counties, has filed a request with the Pennsylvania Public Utility Commission to increase its annual base delivery rate revenues by $19.7 million.

If state regulators approve the 7.4% increase, the average residential customer using 80 hundred cubic feet of natural gas per year would see a monthly bill increase of $4.95, or 5.9%. The company last requested a rate increase in 2022.

National Fuel serves approximately 214,000 customers in northwest Pennsylvania. The utility operates 4,850 miles of pipelines in the region.

Company officials said the proposal aims to return $7.2 million to customers from funds previously collected for retiree health benefits to help offset the price change.

According to the company, the additional revenue would pay for pipeline modernization, rising labor costs, and cybersecurity upgrades. The filing also includes a plan for a new pilot program that would offer rebates to residential customers who install high-efficiency natural gas appliances.

Michael Colpoys, president of National Fuel Gas Distribution Corp., said the investments are intended to ensure system safety and reliability. He noted that the company currently maintains the lowest delivery rates among large gas utilities in the state.

The delivery rate is distinct from gas supply charges, which change quarterly based on market prices. National Fuel does not earn a profit on the cost of the natural gas itself.

The commission will review the request over the next nine months and may approve, reject, or change the proposal. If the commission accepts the plan, the new rates would likely begin Nov. 1, 2026.