Natural gas rates to jump for Ore. customers
By KATU Web Staff & News ServicesSALEM, Ore. - State utility regulators on Tuesday warned Oregon natural gas customers to prepare for likely double-digit increases in their monthly bills this fall. The news came as the three companies supplying consumers with natural gas in the state briefed the Oregon Public Utility Commission on likely increases. The state's largest supplier, NW Natural, said rates could rise as high as 35 percent to 40 percent. Avista and Cascade Natural Gas estimated increases ranging from 10 percent to 20 percent. They say the demand for natural gas is high, wholesale prices are rising, and the utilities will have to pass the cost along to their customers - about 715,000 Oregonians. “This is very much the opposite of what we saw last year," said Commission gas analyst Ken Zimmerman. “Demand is robust while supplies remain tight. As a result wholesale prices are significantly higher than a year ago.” In 2007, the Commission reduced NW Natural’s rates for residential customers by 8 percent and 1.3 percent for Avista Utilities. Cascade’s rates rose by just under 1 percent. Wild cards that could drive natural gas prices higher include the hurricane season and any unforeseen gas pipeline disruptions, the commission said in a news release. Oregon’s supply of natural gas comes from Canada and the Rocky Mountain region. The companies were expected to file requests to raise rates in late August. New rates would not go into effect until Nov. 1, but Commission Chairman Lee Beyer urged customers to start planning how they can use less natural gas this coming winter in the meantime. -The Associated Press contributed to this report. |
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October 7, 2008
- Coos Bay / North Bend, Oregon
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