Cascade Natural Gas Corporation has filed a Purchased Gas Adjustment (PGA) with the Oregon Public Utility Commission to reflect the increase in the cost of natural gas for a 12-month period. The overall request means an approximately 1 percent increase for Cascade customers in Oregon. A commercial customer using an average of 230 therms a month can expect an increase of $0.60 per month or approximately $7.20 for a 12-month period.
“Last winter was very cold, which drew down reserves to their lowest levels since 2003. A lot of natural gas is going back into storage, which has created a slight increase in the demand on natural gas,” said Scott Madison, executive vice president and general manager for Cascade. “The cost of gas makes up the largest segment of a customer’s bill and is a pass-through cost to customers.”
The request means a residential customer using 55 therms a month can expect an increase of $0.37 on average per month, or approximately $4.44 for a 12-month period. A commercial customer using an average of 230 therms a month can expect an increase of $0.60 per month or approximately $7.20 for a 12-month period.
A PGA is a mechanism designed to pass the actual costs of gas supplies to customers. It is very common for the company to either under or over collect through the year as the natural gas market changes throughout the year. The actual purchase price usually differs from the projected price. Also, the projected price is based on average weather conditions.
The proposed rate increase is expected to go into effect on Nov. 1, 2014, upon PUC approval.
Cascade Natural Gas is a natural gas distribution company serving approximately 268,000 residential, commercial, industrial and transportation customers in 96 communities in Washington and Oregon. Cascade is a subsidiary of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as “MDU.”
For more information about MDU Resources, visit the company’s Web site at www.mdu.com.
For more information about Cascade, visit www.cngc.com.
