Supplement No.181 provides for an increase from (0.38%) to (0.36%).

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1 r:~ \(~ national fuel January 2, 217 Rosemary Chiavetta, Secretary Pennsylvania Public Utility Commission Room B-2, North Office Building Harrisburg, Pennsylvania 1712 Re: National Fuel Gas Distribution Corporation STAS change associated with changes to 216 Purchased Gas Cost Filing Docket No. R Supplement No.181 to Tariff Gas Pa. P.U.C. No. 9 Dear Secretary Chiavetta: Enclosed, for filing, is Supplement No.181 to National Fuel Gas Distribution's Tariff Gas - Pa. P.U.C. No. 9. Supplement No.181 is being filed to reflect the change in the State Tax Adjustment Surcharge (STAS) due to the change in Purchased Gas Cost recovery rates to be filed January 31, 217 effective February 1, 217 in Supplement 182 under Title 52 Pennsylvania Code Section 53.64(i){5)(i), that pertains to the regulation which allows companies to file quarterly updates to Annual 137(f) filings. Supplement No.181 has an issue date of January 2, 217 and an effective date of February 1, 217. This filing is being electronically filed. No paper copies will be provided. Supplement No.181 provides for an increase from (.38%) to (.36%). Supplement No. 181 is being filed as a separate supplement per the request of Commission Staff. It is effective on ten ( 1) days notice to coincide with the implementation of the February 1, 217 Purchased Gas Cost Quarterly filing rates. Coordinating the change in the ST AS with the change in the Purchased Gas Cost recovery rate will avoid customer confusion and customer inquiries that would otherwise result from two rate changes occurring ten days apart. As shown on the enclosed certificate of service, copies have been served on parties in the manner indicated. Please direct any questions concerning this filing to the undersigned at (716) or Matt Gurney at (716) Respectfully submitted, mrg/ehm Enclosure Eric H. Meinl General Manager, Rates And Regulatory Affairs National Fuel Gas Distribution C1p oration I 6363 Main Street I Williamsville, NY 14221

2 CERTIFICATE OF SERVICE I hereby certify that I have this day served a true copy of the foregoing document upon the participants listed below in the manner indicated, in accordance with the requirements of 1.54 (relating to service by a participant). FIRST CLASS MAIL Anthony D. Kanagy, Esquire Post & Schell, P.C. 17 North Second Street 12th Floor Harrisburg, PA Richard Kanaskie, Esquire Bureau of Investigation & Enforcement Pennsylvania Public Utility Commission Commonwealth Keystone Building 4 North Street, 2nd Floor West Harrisburg, PA 1712 Jerome D. Mierzwa Exeter Associates Suite Little Patuxent Parkway Columbia, MD 2144 Robert D. Knecht Industrial Economics Incorporated 267 Massachusetts Avenue Cambridge, MA 214 Christy M. Appleby, Esquire Office of Consumer Advocate 555 Walnut Street Forum Place 5th Floor Harrisburg, PA Steven C. Gray, Esquire Office of Small Business Advocate Suite 22, Commerce Building 3 North Second Street Harrisburg, PA 1711 Dated this 2th day of January 217. Eric H. Meinl General Manager, Rates And Regulatory Affairs

3 Supplement No. 181 to Gas - Pa. P. U. C. No. 9 BUFFALO, NEW YORK RATES, RULES AND REGULATIONS GOVERNING THE FURNISHING OF NATURAL GAS SERVICE IN TERRITORY DESCRIBED HEREIN Issued: January 2, 217 Effective: February 1, 217 C. M. CARLOTTI, PRESIDENT BUFFALO, NEW YORK This Supplement increases the STAS See Page 2

4 NATIONAL FUEL GAS DISTRIBUTION CORPORATION Supplement No. 181 to Gas - Pa. P.U.C. No. 9 One-Hundred-Fifty-Fourth Revised Page No. 2 Canceling One-Hundred-Fifty-Third Revised Page No. 2 LIST OF CHANGES MADE BY THIS TARIFF CHANGE: 1. The State Tax Adjustment Surcharge percentage in Rider B increases due to changes in Purchase Gas Cost February 1, 217 quarterly filing rates. Issued: January 2, 217 Effective: February 1, 217

5 NATIONAL FUEL GAS DISTRIBUTION CORPORATION Supplement No. 181 to Gas - Pa. P.U.C. No. 9 One-Hundred-Fifty-Fourth Revised Page No. 4 Canceling One-Hundred-Fifty-Third Revised Page No. 4 TABLE OF CONTENTS Page List of Changes A 3B 3C Table of Contents A Description of Territory Rules and Regulations A 16B A A A 35 35A 35B 35C 35D 35E 35F 35G 35H Residential Service Schedule A Rate Schedule LIRAS Low Income Residential Assistance Service 37 Issued: January 2, A One-Hundred-Fifty-Fourth Revised Forty-Ninth Revised Fifth Revised One-Hundred-Fifty-Fourth Eighty-Fifth Revised One-Hundred-Third Revised One-Hundred-Tenth Revised One-Hundredth Revised Second Revised Second Revised Third Revised Sixth Revised Sixth Revised Second Revised Second Revised Second Revised Third Revised Fourth Revised Fourth Revised Fifth Revised Third Revised Second Revised Fourth Revised Third Revised Third Revised Seventh Revised Ninth Revised Second Revised Third Revised Third Revised Fifth Revised Third Revised Ninth Revised Eighty- Twentieth Revised Tenth Revised Eightieth Revised Effective: February 1, 217

6 NATIONAL FUEL GAS DISTRIBUTION CORPORATION Supplement No. 181 to Gas - Pa. P.U.c. No. 9 One-Hundredth Revised Page No. 7A Canceling Ninety-Ninth Page No. 7A TABLE OF CONTENTS (Cont'd) Rate Schedule SATS (Cont'd) Small Aggregation Transportation Supplier Service Daily Metered Large Manufacturing Transportation Service..... Rider A - Section 137(f) Purchased Gas Costs... Page A 146B 146C 146D 146E 146F 146G 146H A 147B Second Revised Second Revised Forty-Sixth Revised Third Revised Seventy-Third Revised Fourth Revised Fourth Revised Sixth Revised Second Revised Fourth Revised Fourth Revised Ninth Revised Rider B - State Tax Adjustment Surcharge Blank Page Rider E - Customer Education Charge Rider F - LIRA Discount Rate Rider G Merchant Function Charge (MFC) Rider 168 Rider H Gas Procurement Charge (GPC) Blank Page Fifty-Seventh Revised Fifth Revised Sixth Revised Seventeenth Revised Eighty-Fourth Revised Sixth Revised Fifth Revised Forty-Eighth Revised Thirty-Second Revised Nineteenth Revised Issued: January 2, 217 Effective: February 1, 217

7 NATIONAL FUEL GAS DISTRIBUTION CORPORATION Supplement No. 181 to Gas - Pa. P.U.C. No. 9 Fifty-Seventh Revised Page No. 157 Canceling Fifty-Sixth Page No. 157 RIDER B STATE TAX ADJUSTMENT SURCHARGE In addition to the charges provided in this tariff, a surcharge of (.36%) will apply to all charges for service rendered on or after February 1, (I) 217. The above surcharge will be recomputed using the same elements prescribed by the Commission. a. Whenever any of the tax rates used in calculation of the surcharge are changed; b. Whenever the utility makes effective any increased or decreased rates, and c. On March 31, 1971, and each year thereafter. The above recalculation will be submitted to the Commission within ten (1) days after the occurrence of the event or date which occasions such recomputation; and, if the recomputed surcharge is less than the one in effect, the Company will, and if the recomputed surcharge is more than the one then in effect, the Company may submit with such recomputation a tariff or supplement to reflect such recomputed surcharge, the effective date of which shall be ten (1) days after filing. (I) Indicates Increase Issued: January 2,217 Effective: February 1, 217

8 REDLINED VERSION

9 NATIONAL FUEL GAS DISTRIBUTION CORPORATION RIDER B Supplement No. ~t_o - -~ 177 Gas - Pa. P.U.C. No. 9 ~~~~~-~~~~~~. Fifty-,,Seventh R~v_i ~d_ f~g_e_.t::i:o_._!5_7 --{Deleted: sixth J Canceling Fifty-.,SL:th Page No (Deleted:Fifth ] J STATE TAX ADJUSTMENT SURCHARGE In addition to the charges provided in this tariff, a surcharge of (,JJ. 36%_) _ ~i_l_l a_pp!'.l.!:<2 _a]-! _c_!l ~g~~ _ f_?~ _ s_e~':'.':i_c~ _r_ec!e_r~c! o_r_ ~f_t~~.,febru_?~'.l_ ]- ~ i~j _ 217. The above surcharge will be recomputed using the same elements prescribed by the Commission. a. Whenever any of the tax rates used in calculation of the surcharge are changed; b. Whenever the utility makes effective any increased or decreased rates, and c. On March 31, 1971, and each year thereafter. The above recalculation will be submitted to the Commission within ten (1) days after the occurrence of the event or date which occasions such recomputation; and, if the recomputed surcharge is less than the one in effect, the Company will, and if the recomputed surcharge is more than the one then in effect, the Company may submit with such recomputation a tariff or supplement to reflect such recomputed surcharge, the effective date of which shall be ten (1) days after filing.,, - -{ Deleted: o. 38 "::,' i Deleted: November '~ed:d 1,216. J l J (..J ) _ ln_dj.~a_t~~ _Increase --.._: - -{rd:=el=e=ted=:=d=============i ' i Deleted: Decrease Issued:.!January 2, 217 -~f_f~~t_i:'!~:_/ebruary 1, ,--: -i Deleted: October 21, 216 ' i Deleted: November 1, 216

10 Workpaper Page 1 PENNSYLVANIA RATE JURISDICTION STATE TAX SURCHARGE EFFECTIVE February 1, 217 $ $ 1. Gross Receipts Tax Pennsylvania Retail Change in Tax Rate (1) 2. Franchise Tax Taxable Value (PA Corp. Tax Return 215) Change in Tax Rate ( 2 ) 3. Corporate Net Income Tax Taxable Income Pennsylvania Rate Jurisdiction Taxable Income Pennsylvania Multiplied by 4. Public Utility Realty Tax State Taxable Value Change in Utility Realty Tax 157,386,735 (.489) (769,621) 5. of items 1,2, 3 and State Tax Adjustment Surcharge Rate Item 6 Divided by Gross Intrastate Operating Revenues $ (769,621) $ 214,272,83 (769,621) (769,621) -.36% 21NFGDC216 tax return year begins 1/1/16 and current tax rate is Effective 1/1 /6 is 4.89 mills Adjustment At 1/1/6 Current Change.489 (.489) mils

11 VVUll\f.ICIJJ~I Page2 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Present Volumes Rates Mcf Residential Bills 1,934,81 $ ,95,517 $ Over5 9,17,28 $ ,57,725 LIRA Rider $.34 Distribution Charge $.2782 Natural Gas Supply Charge $ Purchased Gas Demand Charge $. Gas Adjustment Charge $.281 $. LIRA Bills 115,39 $ ,81 $ Over5 615,7 $ ,38,15 Distribution Charge $.2782 Natural Gas Supply Charge $ Purchased Gas Demand Charge $. Gas Adjustment Charge $.281 LIRA Discount -6.91% $. Residential Sales 17,95,875 Residential Transportation Bills 1,983 $12. Administration Fees $. All Volume 81,11 $ ,11 LIRA Rider $.34 MMT Gas Cost Charge $.27 $. Residential SA TC Bills 28,223 $ ,3,966 $ Over5 1,413,327 $ ,444,293 LIRA Rider $.34 Distribution Charge $.2782 Purchased Gas Demand Charge $. $. Residential Transportation 2,525,394 Residential Revenues 19,621,269 Residential Gas Costs Non Gas Cost Revenues Revenues at Present Rates $23,217,72 $22,93,451 $2,612,344 $66,76,515 $545,722 $67,36,237 $4,467,259 $71,88,8 $ $451,222 $76,799,281 $ $144,15,518 $1,38,468 $1,395,785 $1,392,87 $4,168,34 $4,168,34 $288,813 $4,647,175 $ $29,172 $4,965,16 ($631,547) $ $8,51,953 $152,67,471 $23,796 $ $225,445 $249,241 $2,756 $251,997 $21,897 $21,897 $ $273,894 $3,362,676 $3,41,259 $3,198,784 $9,962,719 $83,69 $1,45,788 $68,2 $ $68,2 $ $1,725,79 $1,999,684 $163,67,155 $82,466,34 $81,14,815

12 vvorkpaper Page 3 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Small Commercial/Public Authority LE2SO Bills 87,763 $ S 281,478 $2.691 Overs 46,8 $2.36S2 741,SS8 Distribution Charge $.2782 Natural Gas Supply Charge $4.397 Purchased Gas Demand Charge $. Gas Adjustment Charge $.276 Revenue Adj..% Small Commercial LE2SO Trans Bills 7,691 $19.89 Administration Fees $. All Volume 86,838 $ ,838 MMT Gas Cost Charge $.27 $. Small Commercial LE2SO SATC Bills 17,69 $ S S8,349 $2.691 Overs 83,36 $2.36S2 141,38S Distribution Charge $.2782 Purchased Gas Demand Charge $. $. Small Comm/PA LE25 Revenues 969,781 Small Comm/PA LE25 Gas Costs Small Comm/PA LE25 Non Gas Cost Revenues $1,74S,66 $7S7,4S7 $1,88,181 $3,S91,244 $3,S91,244 $26,31 $3,2SS,9S9 $ $2,467 $3,482,727 $ $7,73,971 $1S2,974 $ $229,9 $381,983 $381,983 $23,446 $23,446 $ $4S,429 $339,S2 $1S7,16 $196,398 $692,916 $692,916 $39,333 $ $39,333 $ $732,249 $8,211,649 $3,S4S,S6 $4,666,143

13 VVUIKpaper Page4 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Small Commercial/Public Authority GT25 Bills 33,44 $ ,533 $ Over 2 61,616 $ ,85,149 Distribution Charge $.2782 Natural Gas Supply Charge $4.397 Purchased Gas Demand Charge $. Gas Adjustment Charge $.276 $. Small Commercial/Public Authority GT25 Trans Bills 11,771 $27.53 Administration Fees $. All Volume 53,179 $ , 179 MMT Gas Cost Charge $.27 $. Small Commercial/Public Authority GT25 SATC Bills 8,98 $ ,231 $ Over2 177,822 $ ,53 Distribution Charge $.2782 Purchased Gas Demand Charge $. $. Small Comm/PA GT25 Revenues 1,915,381 Small Comm/PA GT25 Gas Costs Small Comm/PA GT25 Non Gas Cost Revenue $919,612 $921,686 $1,12,711 $2,944,9 $2,944,9 $31,888 $4,764,564 $ $29,95 $5,96,42 $ $8,4,411 $324,56 $ $1,46,626 $1,37,682 $1,37,682 $143,148 $143,148 $ $1,513,83 $222,938 $237,49 $321,129 $781,476 $781,476 $83,475 $ $83,475 $ $864,951 $1,419,192 $5,323,25 $5,96,167

14 vvurkpaper Page5 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Large Commercial/Public Authority Bills Over 2 Distribution Charge Natural Gas Supply Charge Purchased Gas Demand Charge Gas Adjustment Charge Revenue Adj. 6, , ,539 14,125 89,436 $121.1 $ $ $ $.2782 $4.397 $. $.276 $..% $778,336 $1,72,634 $161,676 $17,389 $2,3,35 $2,3,35 $225,185 $3,553,991 $ $22,34 $3,81,516 $ $ $5,831,551 Large Commercial Load Balancing Demand BOU Margin BOU Retail Transportation Commodity Gas Costs MMT Gas Cost Charge $.7974 $.563 $.5566 $.5566 $2.941 $.27 $. $ $ $ $ $ $ $ $ $ $ $ Large Commercial MMT Trans Bills Administration Fees All Volume (Intra) All Volume (Inter) MMT Gas Cost Charge 14,267 5,279,112 5,279,112 $121.1 $. $ $ $.27 $. $1,726,45 $ $7,845,816 $ $9,572,266 $9,572,266 $1,425,36 $1,425,36 $ $1,997,626 Large Commercial DMT Trans Bills Administration Fees All Volume (Intra) All Volume (Inter) ,61 591,61 $121.1 $. $ $ $. $15,973 $ $878,435 $ $894,48 $894,48 $ $ $894,48

15 vvorkpaper Page6 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Present Volumes Rates Mcf Large Public Authority DMT Trans Bills 12 $121.1 Administration Fees $. All Volume (Intra) 144,419 $ All Volume (Inter) $ ,419 MMT Gas Cost Charge $. $. Large Commercial/Public Authority Trans Bills 14,411 $121.1 Administration Fees $. All Volume (Intra) 6,14,592 $ All Volume (Inter) $ ,14,592 MMT Gas Cost Charge $.27 $. Large Commercial/Public Authority SATC Bills 766 $ ,196 $ ,644 $ Over 2 $ ,839 Distribution Charge $.2782 Purchased Gas Demand Charge $. $. Large Commercial/Public Authority Revenues 6,925,867 Large Commercial/Public Authority Gas Costs Large Commercial/Public Authority Non Gas Cost Revenue Revenues at Present Rates $1,452 $ $214,636 $ $216,88 $216,88 $ $ $ $216,88 $1,743,875 $ $8,938,887 $ $1,682,762 $1,682,762 $1,425,36 $1,425,36 $ $12, 18, 122 $92,694 $144,627 $13,978 $ $251,299 $251,299 $28,332 $ $28,332 $ $279,631 $18,219,34 $5,255,28 $12,964,96

16 vvorkpaper Page? PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Small Volume Industrial Service Bills 1,173 $65.6 All Volume 49,46 $ ,46 Distribution Charge $.2782 Natural Gas Supply Charge $4.397 Purchased Gas Demand Charge $. Gas Adjustment Charge $.276 $. Small Volume Industrial Trans Bills 452 $65.6 Administration Fees $. All Volume 17,524 $ ,524 MMT Gas Cost Charge $.27 $. Small Volume Industrial SATC Bills 24 $65.6 All Volume 1,666 $ ,666 Distribution Charge $.2782 Purchased Gas Demand Charge $. $. SVIS Revenues 77,236 SVIS Gas Costs SVIS Non Gas Cost Revenue $76,949 $14,6 $181,549 $181,549 $13,645 $215,346 $ $1,354 $23,345 $ $411,894 $29,651 $ $39,424 $69,75 $69,75 $4,731 $4,731 $ $73,86 $13,382 $22,747 $36,129 $36,129 $2,967 $ $2,967 $ $39,96 $524,796 $238,43 $286,753

17 Workpaper Page 8 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Intermediate Volume Industrial Service Bills Over 2 Distribution Charge Natural Gas Supply Charge Purchased Gas Demand Charge Gas Adjustment Charge Revenue Adj ,2 57,684 8,854 94,54 $21.91 $ $ $.8171 $.2782 $4.397 $. $.276 $..% $139,52 $43,252 $65,558 $7,235 $255,565 $255,565 $26,31 $415,97 $ $2,69 $444,7 $ $ $699,572 IVIS Load Balancing Demand BDU Margin BDU Retail Transportation Commodity Gas Costs MMT Gas Cost Charge $.7974 $.5122 $.388 $.388 $2.941 $.27 $. $ $ $ $ $ $ $ $ $ $ $ Intermediate Volume Industrial Trans MMT Bills Administration Fees Intrastate Volume Interstate Volume MMT Gas Cost Charge 3,463 2,469, 152 2,469, 152 $21.91 $. $ $. $.27 $. $699,214 $ $2,776,88 $ $3,476,22 $3,476,22 $666,671 $666,671 $ $4,142,693

18 VVUll\fJi::lper Page 9 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Intermediate Volume Industrial Trans DMT Bills 296 $21.91 Administration Fees $. Intrastate Volume 79,374 $1.16 Interstate Volume $ ,374 $. IVIS SATC Bills 6 $ ,36 $ ,645 $ Over 2 $ ,951 Distribution Charge $.2782 Purchased Gas Demand Charge $. $. IVIS Revenues 3,36,17 IVIS Gas Costs IVIS Non Gas Cost Revenue $59,765 $ $874,154 $ $933,919 $933,919 $ $ $933,919 $12,115 $6,651 $1,87 $ $2,636 $2,636 $1,656 $ $1,656 $ $22,292 $5,798,476 $1,112,334 $4,686,142

19 vvorkpaper Page 1 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Present Volumes Rates Mcf Large Volume Industrial Service Bills $ $ $ $.76 Over2 $.5688 Distribution Charge $.2782 Natural Gas Supply Charge $4.397 Purchased Gas Demand Charge $. Gas Adjustment Charge $.276 $. Revenue Adj..% L VIS Load Balancing Demand BDU $.7974 Margin BDU $.3182 Retail $.2473 Transportation 65, $ , Commodity Gas Costs $2.941 MMT Gas Cost Charge $.27 $. Large Volume Industrial Trans MMT Bills 96 $89. Administration Fees $. Intrastate Volume 61,33 $.8429 Interstate Volume $. 61,33 MMT Gas Cost Charge $.27 $. Large Volume Industrial Trans DMT Bills 264 $89. Administration Fees $. Intrastate Volume 2,313,132 $.8188 Interstate Volume $. 2,313,132 $. LVIS Revenues 2,988,435 LVIS Gas Costs LVIS Non Gas Cost Revenues Revenues at Present Rates $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $16,74 $16,74 $16,74 $ $17,55 $17,55 $ $33,624 $77,664 $ $514,424 $ $592,88 $592,88 $164,782 $164,782 $ $756,87 $213,576 $ $1,893,924 $ $2,17,5 $2,17,5 $ $ $2,17,5 $2,897,994 $182,332 $2,715,662

20 vvorkpaper Page 11 PENNSYLVANIA DIVISION NORMALIZED SALES REVENUES USING CURRENT RATES IN EFFECT Volumes Mcf Present Rates Revenues at Present Rates Large Industrial Service Bills Over 2 Distribution Charge Natural Gas Supply Charge Purchased Gas Demand Charge Gas Adjustment Charge Revenue Adj. $1,29. $.8657 $.6857 $.4788 $.343 $.2782 $4.397 $. $.276 $..% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ LIS Load Balancing Demand BOU Margin BOU Retail Transportation Commodity Gas Costs MMT Gas Cost Charge $.7974 $.2517 $.1924 $.1924 $2.941 $.27 $. $ $ $ $ $ $ $ $ $ $ $ Large Industrial Trans MMT Bills Administration Fees Intrastate Volume Interstate Volume MMT Gas Cost Charge , ,328 $1,29. $. $.499 $.27 $. $24,696 $ $44,498 $ $465,194 $465,194 $242,279 $242,279 $ $77,473 Large Volume Industrial Trans DMT Bills Administration Fees Intrastate Volume Interstate Volume 18 9,246,796 9,246,796 $1,29. $. $.2812 $. $. $185,22 $ $2,6,31 $ $2,785,521 $2,785,521 $ $ $2,785,521 LIS Revenues LIS Gas Costs LIS Non Gas Cost Revenues 1,144,124 $3,492,994 $242,279 $3,25,715 Late Payment $1,11,271.9 Pennsylvania Division Revenues Pennsylvania Division Revenues Gas Costs Pennsylvania Division Non Gas Cost Revenues 46,2,11 $214,272,83 $98,365,67 $114,86,492

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