Rate Hike Gone Mild: NW Natural Customers Get a Break (Sort Of)

August 19, 2024

Well, folks, here’s something you don’t hear every day—a utility company asking for more of your money, then getting talked down to something a little less gouging. In a twist that’s almost too good to be true, NW Natural customers might see a smaller rate increase than originally feared, thanks to a settlement that’s more a sigh than a scream.

Let’s break it down. Back in December, NW Natural put in a request to the Oregon Public Utility Commission for a 9.9% increase in their annual revenue—about $73.5 million to keep the gas flowing. They blamed everything from infrastructure needs to the rising costs of, well, everything. The typical residential customer, already feeling the squeeze from every direction, was looking at an increase of $7.22 per month, a jump of nearly 9%. But then, someone—probably someone with a pulse—decided that maybe, just maybe, this was asking a bit too much.

Enter the Oregon Citizens’ Utility Board and the commission staff, who stepped in and said, “Not so fast.” What followed was the kind of negotiation where both sides come out pretending they’re happy, but nobody’s truly thrilled. After some back-and-forth, they reached a deal: NW Natural would still get their rate hike, just not as much as they wanted. In short, your gas bill will go up, but it won’t punch you in the gut quite as hard as you expected.

The fine print? The settlement reduces the requested increase to $62 million, bringing it down to about 8.2%. The typical residential customer now faces an average monthly bump of around $6.00, instead of $7.22. Not a massive win, but these days, any reduction in pain is worth noting.

The commission is set to review and finalize this settlement in November, meaning there’s still a little time before the new rates kick in on January 1, 2024. And while NW Natural is still getting more of your money, at least it won’t be as much as they initially wanted.

Here’s a bit of corporate-speak for you from NW Natural’s spokesperson David Roy, who said, “We are committed to working collaboratively with all stakeholders to ensure a balanced outcome that supports our customers, community, and the continued safe and reliable operation of our system.” Translation: We didn’t get everything we wanted, but we’ll take what we can get.

So, what’s the moral of the story? You’re still paying more, just not as much more. It’s a small victory in a world where even the small victories seem to come at a cost.

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