NW natural gas customers' bills will drop by more than 13% starting Friday under rates approved by the PUC

SALEM, Ore. – The Oregon Public Utility Commission recently approved a rate reduction for Cascade Natural Gas customers, effective Friday, November 1st.

The PUC annually approves adjustments to the rates of the three regulated natural gas companies, including Cascade Natural Gas, Avista Utilities and NW Natural, to reflect changes in the actual cost of natural gas at wholesale prices.

This annual adjustment, also called Purchased Gas Adjustment (PGA), allows companies to pass on their actual gas purchasing costs to customers without adding a markup to the price. The PGA, along with other fee-related filings that also went into effect on November 1, resulted in an overall decline in customer fees.

This decline is largely due to the lower-than-expected price of natural gas last year compared to forecasts at the time the rates were set, which led to an over-capture of revenue from customers last year, the PUC said.

The overcollected funds will be used to reduce customer collections this year. Additionally, customers experienced a mild winter that reduced demand for natural gas services.

Below are the impacts of the PGA and other price-related enrollment decisions on each customer type:

• Private customers – The monthly bill of a typical customer using an average of 57 thermal baths per month will decrease by $9.47, or 13.2 percent, from $72.07 to $62.59.
• Commercial customers – The monthly bill of a typical customer using an average of 256 thermal baths per month will decrease by $46.54, or 16.9 percent, from $274.89 to $228.35.
• Industrial customers – The monthly bill of a typical customer using an average of 1,682 heaters per month will decrease by $345.50, or 19.6 percent, from $1,764.53 to $1,419.03.

“Oregon’s purchased gas adjustment mechanism reflects that the cost of natural gas is largely determined by regional, national and global factors beyond the utility’s control. “But it also creates incentives to hold utilities accountable for careful management within these market conditions,” said PUC Chair Megan Decker. “We are fortunate this year that the stabilization of natural gas supply and demand is easing financial pressure on consumers.”

To increase energy efficiency and save on future bills, check out Energy Trust of Oregon's current incentives and opportunities, including income-based offers, and learn about low-cost and free tips for reducing energy use. For information about bill payment assistance options, help with overdue bills, available utility discount programs, weather protection and the Budget Pay Program, which offsets bill payments during the winter and summer months, contact Cascade Natural Gas at 888-522-1130 or view the information online. Customers can also contact their local Community Action agency to request information about what assistance programs they may be eligible for and how to enroll.

Cascade Natural Gas serves more than 75,000 customers in the Bend region and parts of Northeast Oregon.