Natural Gas Prices Going Down

posted by Brad Ford - 

Northwest Natural Gas Company (NW Natural) customers will be paying lower rates starting Nov. 1. This is the fourth straight year that the cost of natural gas has dropped, and customers are still paying less than they did 15 years ago.

New rates for Oregon customers incorporate the conclusion of the general rate case and the results of the annual Purchased Gas Adjustment (PGA). Together these adjustments result in a 2.1% or $1.10 savings for an average residential customer using 53 therms per month. Commercial customers will save 2.41% or $4.92 per month based on an average usage of 237 therms.

“We’re pleased to pass these savings on to customers,” said David H. Anderson, president and CEO of NW Natural. “The new rates in Oregon reflect not only lower gas costs, but also the recently approved general rate case. After 10 months of review with regulators and stakeholders, we’re pleased to reach conclusion on that, and we look forward to continuing to provide customers with high-quality, affordable service.”

The new rates include the Public Utility Commission of Oregon’s (OPUC) approval of a $23.4 million base rate increase, which equates to a net benefit to the company of $14.2 million. The increase recovers costs of company operations and investments in greater system reliability and resiliency.

The new rates also include the recently OPUC approved PGA reduction of 6.2% in residential rates and 5.8% in small commercial rates. Filed each year, the PGA takes into account a lower cost of natural gas, which is primarily the result of an abundant supply projected for the year ahead, and other year-to-year adjustments and costs approved by regulators.  

The effect of rate changes may vary for individual customers depending on their customer category, usage and other factors.

Source: NW Natural

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