Natural Gas Will Be Cheaper This Winter
Posted on October 19, 2016 by Bob Jenks
Tags, Energy
Every fall, the Public Utility Commission resets natural gas prices to reflect the expected costs for the upcoming year with the new rates taking effect November 1. The good news this year is that gas costs are declining for all three natural gas utilities operating in Oregon. Residential rates are declining for each of the utilities:
Northwest Natural: -3%
Avista Utilities: -6.7%
Cascade Natural Gas: - 14.1%
While there are several adjustments that are made each fall, these rate change are primarily made up of two elements. The first is the forecasted cost of gas for the next year. Much of this is known because the utilities have contracts for gas supply, including hedges to protect against gas price increases. The second element is a true-up of last year’s gas costs.
With some forecasts predicting a colder than normal winter, this is good news for Oregon households that heat their homes with natural gas.
Cascade’s declining gas costs also impacted their recently settled rate case, which CUB will be reporting on soon in a separate blog update. Stay tuned!
To keep up with CUB, like us on Facebook and follow us on Twitter! You can also keep up to date with breaking news by joining our email list today!
12/27/16 | 0 Comments | Natural Gas Will Be Cheaper This Winter