Cascade Gas Requests 17.4% Increase for Residential Customers

Posted on January 13, 2026 by Charlotte Shuff
Tags, Energy, General Interest

This year, Cascade Natural Gas is asking regulators to approve a 17.4% increase in home billing rates. This is the first time Cascade has asked for a big increase since 2020. There is also a possibility that the increased amount could grow as the utility assesses fuel costs.

Cascade’s initial request includes infrastructure projects, higher profits for shareholders, and new ways to charge for investments in renewable natural gas (captured methane). CUB is also investigating the gas utility’s policy that requires customers to subsidize new hookups for homes and businesses, expanding the gas system.

Want even more information on this case? Check out the full docket on the Oregon Public Utility Commission website!

Customer Impacts

Customers could see average home gas bills rise to $75 per month (an $11 per month increase). Cascade is also asking to double the fixed charge from $6 to $12 per month for household bills. The impact would be even greater in the winter months when usage is higher. For an average customer paying $119 in January 2025, Cascade’s request would raise that to about $135 in January 2027. If approved, this increase would go into effect on October 31, 2026.

We also anticipate Cascade filing for another rate change later this year related to the cost of gas. This filing happens every year as the market continues to change and impact fuel costs. While this is a normal adjustment, it is uncertain if the change will have a significant impact on customers in combination with the already requested 17.4% increase.

What Cascade is Asking For

Overall, Cascade is requesting $16.4 million from all customers. $10.3 million of the request would apply to residential customers.

Cascade is asking for:

Increased shareholder profits
Operations costs up from inflation
Big infrastructure projects (pipes and other equipment)
Renewable natural gas projects and purchases

CUB is reviewing all of the costs to ensure they are reasonable for customers to pay. We are particularly concerned with the request to increase profit margins. This 1% increase would cost customers millions of dollars each year.

CUB Opposes Expanding Subsidies for Growing the Gas System

The gas utility is also asking for a change to its customer-funded subsidy to grow the gas system. Existing customers pay for expanding Cascade’s business through a subsidy called a “line extension allowance.” This subsidy benefits building developers, encouraging new homes to be built with gas.

Cascade is the last remaining Oregon gas utility charging customers an expansion subsidy. Over the past few years, regulators at the Oregon Public Utility Commission have ended similar policies for NW Natural and Avista. Regulators agreed with CUB that these policies are not in the best interest of customers.

Cascade is not just holding on to the subsidy, but also trying to punish new customers who decide to move away from using gas. The utility is proposing that customers will continue to subsidize new hookups. But now, if a new customer doesn’t use a baseline amount of gas each year, that new customer will have to pay Cascade back up to thousands of dollars. This means if someone buys a new home built with gas and decides to go electric, they could be penalized.

CUB will continue to push back on these customer-funded subsidies and encourage regulators to eliminate them.

Big Questions Remain on Renewable Natural Gas Investments

Under the Climate Protection Program, gas utilities are now required to reduce emissions by 90% by 2050. While there are many ways for utilities to achieve this mandate, renewable natural gas is a favorite option because of its profitability. Cascade has multiple big investments it wants to charge customers for, as well as a new proposal to make these charges automatic going forward.

Big Investments with Questionable Customer Costs

Cascade is investing in two big renewable natural gas plants: Knott Landfill and Pine Creek. The first may raise some questions for Deschutes County residents, who were recently informed that Knott Landfill is set to close.

Overall, CUB is questioning whether residential customers could be overcharged for these projects. While gas utilities must reduce emissions, many studies have shown that the cheapest way to do this is to electrify homes and businesses. Swapping gas stoves and furnaces for highly efficient induction burners and heat pumps is a one-time cost. This saves the utility money on reducing emissions and saves customers money on their monthly bills.

Big renewable natural gas projects mainly benefit business and industrial customers. Many industries do not have electric alternatives and need to stay on a combustion fuel, like methane. But Oregon families should not have to pay for projects that do not benefit them.

It is also unclear how this methane would be delivered to customers. While blending this gas into the overall supply would go to homes and businesses, utilities can also provide this renewable natural gas directly to consumers. It’s unclear if residential customers will see this captured methane in homes at all.

CUB is pushing back to ensure household gas customers are not being overcharged for expensive renewable natural gas projects.

Cascade Wants to Automatically Charge Customer for Renewable Natural Gas

While CUB still has lingering questions about how reasonable Cascade’s investments are, the gas utility wants to automatically charge customers for renewable natural gas. Cascade is asking regulators to allow it to invest in these projects and add costs to customer bills with very little oversight.

This is not the first time we’ve seen this request for automatic charges for expensive investments. Cascade is taking a page from NW Natural’s request just a few years ago. In that case, CUB was able to secure strong customer protections and limit what gas customers would be on the hook for.

CUB will continue to push back against removing oversight on customer charges and ensure we are only paying for the lowest cost and most reasonable investments in our utility systems.

Cascade May Be Overinvesting in Growing Its System

Cascade seems to be projecting more growth in its gas system than makes sense for Oregon. Utilities make money by investing in infrastructure and then charging customers for the cost plus additional profit. When a gas utility forecasts growth on its system, it can justify spending a lot of money — and earning a lot of profits — on new projects.

The problem is that Cascade’s largest service area is in Bend, a city with strong climate policies. Bend is currently considering new laws that would make adding new gas hookups less appealing to builders and homeowners. This is part of a larger trend in Oregon with many cities and counties across the state pushing for all-electric buildings.

CUB is digging deeper to see if the projected growth is reasonable or just a pipe dream.

Customers Can Speak Out Against Rising Cascade Gas Bills

Regulators at the Oregon Public Utility Commission are currently planning for two hybrid public comment hearings. One will be held in Bend in February, and the other will be held in Umatilla County in March. Stay tuned for more information on how to join these hearings!

Throughout much of this year, customers can submit written comments to the Oregon Public Utility Commission on this case. Submit your comments on the Commission’s website!

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