Natural Gas Rates Update
Posted on October 29, 2020 by Bob Jenks
Tags, Energy
Last week (the week of October 19), the Oregon Public Utility Commission completed its comprehensive review of natural gas rates for Oregon utilities. Natural gas utility rates are comprised of two elements: the cost of the natural gas commodity, and the cost to operate the utility. The cost of purchasing gas is the “cost of doing business” for the gas utility, and does not include a profit for the company. Every November, Oregon natural gas utilities update the cost of their gas purchases in a “purchased gas adjustment”. If the cost of natural gas is less than expected, the savings are credited to customers in the following year. If there are increases in the cost of gas during a year, or the gas utility is required to purchase more gas than expected, the additional cost is recovered from customers in the following year.
This year, the price of the natural gas commodity has decreased for all three investor owned utilities in Oregon. Concurrently with the price update of natural gas, NW Natural is implementing an increase in its operating costs following its recent general rate case. This means that NW Natural’s increased operating costs will be partially offset by decreased gas commodity costs.
Below is the average rate change, effective November 1, 2020, in natural gas rates for residential natural gas customers:
NW Natural: 4.22 Percent Increase
Cascade: 0.3 Percent Decrease
Avista: 0.3 Percent Decrease
Due to the COVID-19 pandemic which has many Oregonians out of work or working from home, the gas utilities have agreed to extend the current moratorium on disconnecting customers through the winter heating season, are offering more flexible payment plans for customers, and have set aside some funds to forgive customers’ past due bills. Customers who are having trouble paying their bills should contact their gas company to find out about these programs.
Contact Information:
NW Natural Customer Service: 800-422-4012
Avista: (800) 227-9187
Cascade: 888-522-1130
For more information about the natural gas market, see CUB Blog “The Implications of an Oil Price Collapse on Natural Gas Rates”.
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10/29/20 | 0 Comments | Natural Gas Rates Update