National Fuel's Conservation Incentive Program Offers Rebates!
Available for qualifying natural gas equipment beginning with purchases made on or after November 1, 2007.

On January 29, 2007, the Utility submitted to the New York State Public Service Commission ("PSC") a request to re-design and raise its Delivery Service Charges beginning in 2008. As part of that request, the Utility proposed the CIP, which represents a substantial commitment to running extensive programs promoting the benefits of conservation through education; rebate offers and targeted low-income initiatives. On September 19, 2007, the PSC approved the CIP, which allowed National Fuel to then move forward in developing the program in detail. The other issues included in the request filed in January have yet to be decided.

While the materials for the CIP and its components are still being developed, the Utility viewed it important to advise customers now of the rebate effective date so that they could factor that benefit into the purchasing decisions they are now making. Choosing high efficient energy appliances is always the best option, but can be more expensive. In order to make the decision easier, the Conservation Incentive Program's rebates are designed to offset the cost of purchasing a high-efficiency item when compared to a lower-efficiency model.

For Residential customers in National Fuel's western New York service area, rebates will be available on the purchase of the following items:



Required Minimum Efficiency Rebate Amount
Space Heating
Hot Air Furnace 90% AFUE* $300
Hot Water Boiler 85% AFUE* $400
Steam Boiler 81% AFUE* $200
Programmable Thermostat ENERGYSTAR®-Rated $25

Water Heating
Storage Tank Heater 0.61EF** $150
Tankless Heater 0.78** $350












The CIP also includes a non-residential rebate offer for customers whose facilities use less than 12,000 Mcf (thousand cubic feet) of natural gas per year that is not based on a fixed rebate schedule. For these customers, rebates will be based upon the installed cost for the new equipment and the amount of savings it will generate. As much as 50 percent of the incremental equipment and installation costs, up to $25,000 per project, will be offered. The rebate effective date for qualifying purchases made by non-residential customers is also November 1, 2007. Non-residential customers (with annual usage of less than 12,000 Mcf) should contact National Fuel if they are contemplating the installation of new natural gas equipment or are seeking other ways to improve the energy efficiency at their facility. Non-residential
customers will be provided with specific documentation requirements for the rebate program and should contact National Fuel with any questions.

Rebates will be processed beginning on December 1, 2007. Until then, residential customers who purchase qualifying equipment (as of November 1, 2007) should be observant of the following guidelines so that they can keep the documentation they will need in order to complete the application for a rebate:



Purchased Item Required Documentation
Programmable thermostat Receipt; make and model number, UPC (bar code) label from the package (only ENERGY STAR ®-rated models qualify).
Furnaces, Boilers,
and
Water Heater Paid invoice or receipt(s) indicating the Retailer/Contractor name, business address, phone and Federal ID (tax) number.

Itemized description of each product, including:
1. Manufacturer, and complete model number.
2. Energy Factor(EF) for natural gas water heaters.
3. AFUE (efficiency) rating for natural gas furnace or boiler.

Product installation date.


No rebates will be processed before
December 1, 2007, and customers should not submit any information pertaining to their equipment purchase before that date.
In the coming weeks, the Utility will provide more information to customers on the CIP, including the rebate applications, to its customers.

National Fuel is an integrated energy company with $3.8 billion in assets comprising five operating segments: Utility, Pipeline and Storage, Exploration and Production, Energy Marketing, and Timber. The Utility segment serves approximately 500,000 customers in western New York. Additional information about National Fuel is available at www.nationalfuelgas.com

An example of how you can make high efficiency more affordable:

New 90% High-Efficiency Furnace
$3,500
Standard 80% Efficient Furnace $2,500
Cost difference for higher-efficiency model $1,000
One-time Rebate $300
Cost Difference after rebate $700
Annual Operating Cost Savings $189/year*
Simple payback on cost for high-efficiency model 3.7 years+