NW Natural Customers in Oregon Will Pay More for Gas Starting Tomorrow

Bills for NW Natural’s Oregon households will rise by about 7.3% from Saturday, Oct. 31, after rate changes were approved by the Oregon Public Utility Commission.

Actual costs will depend on consumption, but on average the increase will add around $6.30 a month to the bill of a typical residential customer using 54 therms.

Typical NW Natural Household to Pay $6.30 More Per Month for Natural Gas

The Purchased Gas Adjustment (PGA) accounts for the utility’s expected natural gas purchasing costs for the coming year and reconciles previous estimates against actual expenses. These costs are then passed on directly to customers without additional profit for the utility.

The commission’s Oct. 28 announcement covers adjustments for several things, including NW Natural’s annual PGA, its Alternative Rate Mechanism, and recovery costs for recently completed infrastructure projects.

This year’s adjustment is partly driven by lower gas consumption during the previous winter, which was unusually warm. The changes are reflected in the new rates.

Natural Gas Pipeline Safety Projects Included in Rate Increase

A partial agreement covering infrastructure investments was also approved by the commission under dockets UG 527 and UG 528, allowing NW Natural to recover about $13 million in additional revenue. The recovery is less than the company originally requested.

Approved projects include landslide mitigation work on the Coos County Pipeline to bolster the safety and reliability of the gas network.

Contributions from Coos County as well as limits on recoverable costs were also incorporated into the agreement. Several proposed projects were removed or adjusted.

Residential rate changes take effect October 31, while commercial and industrial customers will see adjustments from November 1.