Cascades Rates Due to Modestly Increase
Posted on January 25, 2019 by Will Gehrke
Tags, Energy
Cascade Natural Gas, a natural gas utility with customers in Central and Eastern Oregon, recently requested a 4.94 percent rate increase for residential customers. The main driver for this rate increase was increased investment in natural gas pipeline infrastructure. The Bend-Redmond Metropolitan area is one of the fastest growing cities in United States. In response to growing customer load, Cascade has decided to reinforce and install a large amount of capital equipment in order to maintain a safe and reliable gas distribution network for its customers.
CUB has agreed to a settlement of the rate case which will limit the increase to about 2.8 percent for residential customers. Industrial customers will receive an increase of three times that percentage. In Cascade’s initial rate case filing, the company did not request a rate increase for commercial customers, but as part of the settlement, those customers will receive the same increase as residential customers. This redistribution of the rate increase to commercial and industrial customers will lower the impact on residential households.
CUB’s analysis and testimony helped to lower the size of the rate increase. A significant portion of the rate revision was offset by a decrease in federal incomes taxes resulting from the 2017 Federal Income Tax cuts. CUB successfully challenged several of Cascade’s expenses, such as purchasing of major construction equipment, and the size of the company’s payroll.
CUB was also able to convince Cascade to agree to a two-year pilot program, wherein the company will cease collecting customer deposits from residential ratepayers. Customer deposits can place a huge burden on low-income households, and other utility industries such as phone/Internet do not require them. CUB believes it is more equitable to leave customer deposits out of utility service delivery.
This rate case was a triumph for residential customers. The size of the rate case was significantly decreased. However, CUB anticipates that Cascade will regularly file for rate increases going forward. Cascade is experiencing explosive growth in Central Oregon and will have to invest heavily in its pipeline system in the future. Whether the next case is filed next year, or in the next decade, CUB will continue to staunchly advocate for all Oregonian residential ratepayers.
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02/13/19 | 0 Comments | Cascades Rates Due to Modestly Increase