Oregon’s natural gas rates to climb starting Oct. 31

Oregon Public Broadcasting first published this article.

Natural gas prices for more than 892,000 Oregon customers are set to increase starting Saturday.

On Wednesday, the Oregon Public Utility Commission finalized how much each of the state’s three major gas companies could increase rates, effective Oct. 31.

Here’s what residential customers can expect:

• NW Natural: a 7.3% rate hike, which will cost the typical customer about $6.30 more per month;
• Cascade Natural Gas: a 10.7% rate hike, or $7.38 more a month;
• Avista: an 8.5% rate hike, or $5.38 more a month.

NW Natural, Oregon’s largest gas utility, serves more than 700,000 customers in Northwest Oregon. The company says on its website that its rate increase reflects the cost of natural gas for the upcoming winter season and accounts for the difference between the estimated and actual cost of gas from the previous year.

A spokesperson acknowledged that the rate hike is coming at the same time as many customers are facing rising costs due to inflation, and said in an email that the company works to keep its service reliable and its rates affordable.

Utility commission Chair Letha Tawney said in a statement NW Natural’s rates are climbing less than it requested, under a settlement that will still ensure the company can continue to provide reliable service to customers.

“The approved settlement reduces the company’s requested increase, supports critical infrastructure investments, and includes measures that promote accountability and long-term planning for the Coos County Pipeline,” she said.

Meanwhile Cascade Natural Gas, which serves more than 86,000 customers in central and eastern Oregon, said its rate hike will fund system upgrades, maintenance and costs associated with new investments.

The company will also begin a three-year phase out of “line extension allowances” which are subsidies that help with costs like laying down new pipes or hooking up gas to homes and businesses.

Cascade will also pilot a new program offering $1,500 rebates to eligible customers who install a heat pump.

“Cascade’s filings involved complex issues, ranging from cost recovery to climate compliance,” Tawney said. “These decisions balance customer impacts with Oregon’s energy and climate goals, and they improve transparency through required studies and future filings.”

For Avista, which serves about 106,500 customers in southwest and northeast Oregon, gas prices were a factor in rate hikes as well as accounting-related adjustments.

The increases at all three gas companies go into effect one day before the state’s ban on “winter months” rate hikes goes into effect. Utilities are no longer allowed to raise rates Nov. 1 through March 31 — when gas and electricity use is at its highest.

That’s after Gov. Tina Kotek signed the Fairness & Affordability in Residential Energy Act, or FAIR Energy Act, which moved rate hikes out of winter months, limits how frequently a utility can increase rates and approves smaller rate increases over a period of time.