NW Natural plans to hike natural gas rates 19% this summer
Southwest Washington's sole natural gas utility proposed a rate hike of roughly 19 percent set to hit consumers this summer, but it is being challenged by the Washington attorney general's office.
NW Natural, a private, Portland-based utility that serves nearly 100,000 customers in Southwest Washington, announced the proposed rate in a March 23 settlement negotiated between the company and several stakeholders.
The Washington Utilities and Transportation Commission is holding a virtual public hearing on the rate increase at 6 p.m. April 30.
"The costs of living are out of control, and the last thing Washingtonians need are unjustified hikes to their utility bills," Washington Attorney General Nick Brown said in a statement. "Utility companies provide critical services, but the push for profits should not be forced onto the backs of captive consumers."
The Alliance of Western Energy Consumers (which represents large industrial customers), utility commission staff, the attorney general's office and The Energy Project (which advocates for low-income customers) participated in negotiations around NW Natural's multiyear rate increases. The attorney general's office, however, was not part of the settlement agreement that was reached.
The rate increase would hit hardest in 2026, with an average 19 percent increase for residential customers. A smaller 5 percent increase would follow in 2027 and a 6 percent increase in 2028, according to the company.
The increase would be about 20 percent for the average small commercial customer in 2026, followed by a 6 percent increase in 2027 and a 7 percent increase in 2028.
Raising rates isn't a decision NW Natural takes lightly, said Stefanie Week, a spokesperson for the utility.
"Especially since we know our Washington customers have recently felt rate impacts from the state's Climate Commitment Act," she said, adding that these increases are not associated with Climate Commitment Act costs.
Rather, Week said the utility can't ignore the costs associated with its obligation to safely manage its system.
"So even though this rate case was a difficult decision to make, it's a necessary one and we'll continue to do our very best to provide the value and service our customers depend on," she said.
The company began tacking on a "WA Climate Act Fee" to its bills in Southwest Washington in 2024, about a year after the state's Climate Commitment Act went into effect. The cap-and-invest program, meant to reduce Washington's greenhouse gas emissions, launched its first emissions allowance auctions in February 2023.
The WA Climate Act Fee, though approved by the Washington Utilities and Transportation Commission, drew criticism from other state agencies, including the Washington Department of Ecology, which claimed NW Natural's rate increases were "much higher than what we've seen from other natural gas utilities in the state."
By rejecting a November 2024 initiative to repeal the Climate Commitment Act, voters upheld the climate law and its requirement for high-emitting companies to buy credits for exceeding the state's carbon emissions limit.
Week said NW Natural's proposed rate increase will cover the cost of a multiyear modernization program to replace metering infrastructure that's nearing the end of its life. This new meter technology will enable remote or automatic shut-off and safety alerts.
The company also plans to update its IT systems and technology infrastructure and improve its distribution system and storage facility.
"We know that any rate request is a serious consideration, which is why we take several steps to maximize affordability, such as locking in gas purchases at lower rates, smart investments in energy storage and energy efficiency measures," Week said.
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