Northwest Natural Gas rates decline with fall in gas prices
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Northwest Natural Gas Company (NW Natural) has announced that customers are paying lower rates as of Nov. 1 – 2.1 percent, to be exact, for most.
This is the fourth straight year that the cost of natural gas has dropped, and customers are still paying less than they did 15 years ago.
New rates for Oregon customers incorporate the conclusion of the general rate case and the results of the annual Purchased Gas Adjustment (PGA). Together, these adjustments result in a 2.1-percent or $1.10 savings for an average residential customer using 53 therms per month. Commercial customers will save 2.41 percent or $4.92 per month based on an average usage of 237 therms.
“We’re pleased to pass these savings on to customers,” said David H. Anderson, president and CEO of NW Natural. “The new rates in Oregon reflect not only lower gas costs, but also the recently approved general rate case. After 10 months of review with regulators and stakeholders, we’re pleased to reach conclusion on that, and we look forward to continuing to provide customers with high-quality, affordable service.”
The new rates include the Public Utility Commission of Oregon’s approval of a $23.4 million base rate increase, which equates to a net benefit to the company of $14.2 million. The increase recovers costs of company operations and investments in greater system reliability and resiliency.
The new rates also include the recently PUC-approved PGA reduction of 6.2 percent in residential rates and 5.8 percent in small commercial rates. Filed each year, the PGA takes into account a lower cost of natural gas, which is primarily the result of an abundant supply projected for the year ahead, other year-to-year adjustments and costs approved by regulators.
The effect of rate changes may vary for individual customers depending on their customer category, usage and other factors.
NW Natural serves approximately two million people in more than 140 communities through 740,000 meters in Oregon and Southwest Washington. For more information visit nwnatural.com.
