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Northwest Natural customers to receive second natural gas reduction this year
 
Oct. 29, 2009
Docket Number: UG-091371

OLYMPIA, Wash. – For the second time this year, state regulators have approved a decrease in natural gas rates for Northwest Natural Gas Co. (NWNG) customers – this time by more than 20 percent.

The Washington Utilities and Transportation Commission (UTC) approved the utility’s request to reduce natural gas rates by 21.9 percent for residential customers starting Nov. 1. Commercial customers will see a 22.8 percent rate decrease. The lower prices are due to an abundant supply and a steep decline in wholesale natural gas prices.

“I am pleased for the time being, natural gas customers will receive a significant break on their winter heating bills,” said UTC Chairman Jeff Goltz.

For an average residential customer using 60 therms a month, their natural gas bill will decrease by about $20, from about $90 to $70. Commercial customers will realize an average savings of almost $88 monthly. A one-time refund credit was approved by the UTC in May for NW Natural customers.

Natural gas companies are required to adjust rates periodically to reflect changes in wholesale prices. About two-thirds of a NWNG customer’s monthly bill is attributable to the cost of natural gas of which the company is not allowed to collect a profit.

Headquartered in Portland, Ore., NWNG serves 67,862 residential and business customers in Clark, Skamania and Klickitat counties in Washington state.

The three-member state commission regulates the private, investor-owned natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.