Written by Rob Lillpopp on March 8, 2010 – 7:38 am
Mark Scheer of the Niagara Gazette writes - “Like most people in Niagara Falls, Ferry Avenue resident Aurelia Martin gets a bill from National Fuel every month.
Generally, it runs about $200.
Sometimes it’s a little higher.
Either way, Martin knows she can’t afford not to pay it.
“The way they do it, it’s hard to gauge by your bill,” Martin said. “I don’t even really try to understand what it’s all about.”
Martin’s not alone in that respect. When it comes to paying for a vital service like home heating, it’s not uncommon for National Fuel customers to simply send a check, not knowing exactly what they are getting for their money.
So what happens to the average customer’s payment?
A portion of the proceeds are returned to the company in the form of profit. The largest portion covers the cost of the fuel, delivery of the product and the company’s operational expenses. A rather hefty chunk actually gets sent to the state of New York to cover sales tax and other fees.
Where does the money go?
According to National Fuel, every dollar of revenue received from the average customer is split up into five major categories — gas purchased, other operating costs, taxes, earnings and interest charges.
The largest percentage is devoted to the cost of the actual fuel and the price for delivering it to homes and offices. ”
To read the rest of the story click here.
