NW Natural gas bills rise about $6.30 a month for Salem-area homes starting Saturday (Oct. 30)
Quick Read
A typical NW Natural home using 54 therms a month will pay about $6.30 more a month, or about 7.3%, starting Saturday, Oct. 31, under rates the Oregon Public Utility Commission approved Wednesday.
NW Natural is the gas utility for Salem, Keizer, Silverton, Stayton, Woodburn, Dallas and other mid-valley towns, and serves more than 700,000 customers in northwest Oregon.
Regulators say the increase reflects pipeline safety projects, including landslide work on the Coos County Pipeline, plus a true-up after last year's warm winter cut gas use.
The hikes land one day before a new state rule bars utility rate increases from Nov. 1 through March 31. Income-qualified households can get help through NW Natural and Mid-Willamette Valley Community Action.
SALEM, Ore. - Natural gas bills for Salem-area homes go up this weekend. A typical NW Natural residential customer will pay about $6.30 more a month, roughly 7.3%, starting Saturday, Oct. 31, after the Oregon Public Utility Commission approved new rates on Wednesday, according to a commission news release.
The change hits as the weather turns. The National Weather Service in Portland has a freeze watch in effect for the Salem area from midnight Friday to 9 a.m. Saturday, the same day the new rates take effect.
What changes and when
The $6.30 figure is for a typical home using 54 therms a month, and actual impacts will vary with use, the commission said. Rates for businesses and other non-residential customers change Nov. 1. NW Natural says on its rates page that a typical small business using 274 therms a month will pay about $43.10 more a month.
NW Natural serves more than 700,000 customers in northwest Oregon. In the mid-Willamette Valley, the company lists Salem, Keizer, Silverton, Stayton, Woodburn, Aumsville, Dallas, Amity, McMinnville, Newberg, Canby and Lafayette among the communities it serves, along with Albany, Corvallis and Lebanon farther south.
Saturday's increase is separate from the multiyear base-rate change NW Natural began in August. The company says the average residential customer connected on or before July 25, 2021, sees an increase of about 20% for the first year, August 2026 through July 2027, followed by about 5% in each of the next two years. Customers with newer connections see about 16% the first year and about 4% after that, according to NW Natural.
Why bills are going up
The commission said the new rates combine two decisions. The first is a settlement that lets NW Natural recover the cost of capital projects that recently went into service, including landslide mitigation on the Coos County Pipeline. The settlement cut NW Natural's requested revenue increase to about $13 million, applied contributions from Coos County and capped recovery, according to the release.
In its Oct. 13 order, the commission said that part alone raises residential rates 1.5%. The 60-mile pipeline links the Coos County region with the Williams pipeline near Roseburg. The order also makes NW Natural subject to an earnings test for November 2026 through October 2027, set at its authorized 9.4% return on equity, with any over-earnings credited back to residential customers on Oct. 31, 2028.
The second piece is NW Natural's yearly Purchased Gas Adjustment, which sets what customers pay for the gas itself and reconciles last year's estimates with actual costs. The commission said those costs pass through to customers without added profit and that this year's increase is driven by adjustments for lower gas use during last year's unusually warm winter.
"The approved settlement reduces the company's requested increase, supports critical infrastructure investments, and includes measures that promote accountability and long-term planning for the Coos County Pipeline," commission Chair Letha Tawney said in a statement, OPB reported.
What the utility and consumer advocates say
An NW Natural spokesperson acknowledged to OPB that the increase comes as many customers face rising costs from inflation and said the company works to keep its service reliable and its rates affordable. On its website, NW Natural says it does not mark up the price of gas, and that its average residential bill in its Oregon and Washington territory was $85.79 in 2006 and is $87.66 now.
The Oregon Citizens' Utility Board, which represents residential customers, did not sign the settlement and filed an objection, according to the commission's order. CUB argued the record was not strong enough to find the Coos County Pipeline projects prudent and asked regulators to limit NW Natural's return on that work until a fuller review. NW Natural called CUB's timeline inaccurate and misleading, and the commission disagreed with CUB, finding the record supported the projects' prudence. Willamette News did not find a public statement from CUB on Wednesday's rate decision.
Statewide picture
NW Natural is one of three gas companies raising rates this weekend. More than 892,000 Oregon gas customers will see increases starting Saturday, KGW reported. Cascade Natural Gas customers in Central and Eastern Oregon will see about $7.38 more a month, or 10.7%, KTVZ reported, and Avista customers in southwest and northeast Oregon will see an 8.5% increase, according to OPB and KGW.
All three increases take effect one day before a state ban on winter rate hikes begins. Under the Fairness and Affordability in Residential Energy Act, known as the FAIR Energy Act, utilities can no longer raise rates from Nov. 1 through March 31, when gas and electricity use is highest, OPB reported.
Where to get help
NW Natural offers payment plans and bill discounts of up to 85% for some Oregon households with incomes below the state median, according to the company. Customers can call NW Natural at 1-800-422-4012. The commission also points customers to the Energy Trust of Oregon for rebates and energy-saving tips.
In Marion and Polk counties, Mid-Willamette Valley Community Action runs energy bill assistance. Households qualify at or below 60% of Oregon median income, which is $40,326 a year for one person and $77,550 for a family of four, according to the agency's eligibility page. The agency says online applications are closed until December 2026, but applications may still be available by mail or in person at 2475 Center St. in Salem. Call 503-585-6232 for details.
Sources
Oregon Public Utility Commission: Commission approves rate changes and pipeline project decisions for NW Natural (Oct. 28, 2026, via FlashAlert)
Oregon Public Utility Commission Order No. 26-387: UG 527 and UG 528 (entered Oct. 13, 2026)
NW Natural: Natural gas prices
NW Natural: Community affairs managers and communities served
OPB: Oregon's natural gas rates to climb starting Oct. 31, by Monica Samayoa (Oct. 29, 2026)
KGW: Oregon gas bills are going up Saturday (Oct. 29, 2026)
KTVZ: New Oregon rates will raise Cascade Natural Gas bills starting October 31, by Felicity Desuasido (Oct. 28, 2026)
Mid-Willamette Valley Community Action: Energy services eligibility
National Weather Service Portland: Salem forecast and active alerts
Cover photo: Gas meter 2, by Tim36272, via Wikimedia Commons, licensed CC BY-SA 3.0
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