Oregon PUC approves new rates effective November 1
The Oregon Public Utility Commission (PUC) approved lower natural gas rates for residential and commercial customers of the three regulated utilities – Avista Utilities, Cascade Natural Gas Company, and NW Natural – which go into effect November 1. Industrial customers for Avista and NW Natural will also realize a decrease in rates.
The PUC approves adjustments to each company’s rates annually to reflect changes in the actual cost of wholesale priced natural gas, known as the Purchased Gas Adjustment (PGA). This allows companies to pass through their actual cost of purchasing gas to customers without a markup on the price.
For NW Natural, the adjusted rates also reflect the result of a general rate case that NW Natural had filed with the PUC seeking additional revenues to cover non-gas costs.
“It’s a good day when the Commission can approve lower natural gas prices and help Oregon residents pay less to heat their homes during the colder months,” said Megan Decker, Commission Chair.
The impact for each regulated natural gas company and specific customer categories is detailed, below.
Avista Utilities
The PUC approved an overall decrease of $7.829 million, or 8.3 percent for Avista customers for the PGA annual filing when compared to November 2017 rates.
Residential Customers – 10.2 percent decrease
Commercial Customers – 8.9 percent decrease
Industrial Customers – 16.5 percent decrease
With these changes, the monthly bill of a residential customer using an average of 47 therms per month will decrease by $4.56, or 8.3 percent, from $54.89 to $50.33.
Cascade Natural Gas
The PUC approved an overall decrease of $1.949 million, or 3.0 percent for Cascade Natural customers for the PGA annual filing when compared to November 2017 rates.
Residential Customers – 2.8 percent decrease
Commercial Customers – 3.2 percent decrease
Industrial Customers – 11.4 percent increase
With these changes, the monthly bill of a typical residential customer using 60 therms per month will decrease by $1.13, or 2.5 percent, from $45.22 to $44.09. In addition to this action relating to its purchased gas costs, Cascade Natural has a general rate case pending with the PUC seeking additional revenues to cover its non-gas costs. That decision is expected in March 2019 and will further impact rates for Cascade Natural customers.
NW Natural
The PUC approved a decrease of $33.649 million, or 5.0 percent for NW Natural customers for the PGA annual filing when compared to November 2017 rates. In addition to the decrease in gas costs, the PUC approved a $23.4 million, or 3.72 percent increase for non-gas costs in a general rate proceeding. The combined result of these two decisions is a decrease in customer rates as indicated below:
Residential Customers – 2.1 percent decrease
Commercial Customers – 3.4 percent decrease
Industrial Customers – 6.2 percent decrease
With these changes, the monthly bill of a typical residential customer using 53 therms per month will decrease by $1.10, or 2.1 percent, from $52.44 to $51.34.
Customers may realize additional savings by:
Turning down thermostats to save up to three percent for each degree. A programmable thermostat that reduces heat at night or when no one is home can lower heating bills by five to ten percent.
Updating low-efficiency furnaces and water heaters with higher-efficiency models.
Fully insulating homes to realize up to 30 percent savings on a heating bill.
Cleaning or changing the furnace filter once a month during the heating season.
Conducting an online Home Energy Review through the Energy Trust of Oregon.
Asking their natural gas service provider about bill payment assistance programs.
NW Natural serves nearly 660,000 customers in northwest Oregon. Avista Utilities serves just over 100,000 customers in portions of southwest and northeastern Oregon. Cascade Natural Gas serves more than 73,000 customers in the Bend region and parts of Northeast Oregon.
About the PUC
The Public Utility Commission of Oregon (PUC) regulates customer rates and services of the state’s investor-owned electric, natural gas and telephone utilities, as well as select water companies. The PUC mission is to ensure Oregon utility customers have access to safe, reliable, and high quality utility services at just and reasonable rates, which is accomplished through analysis and independent decision-making conducted in an open and fair process.
