Reflecting different utility strategies for buying wholesale supplies, the Oregon Public Utility Commission (PUC) last Friday approved annual rate changes for the state’s three private-sector natural gas distribution utilities. Two of the changes result in increases and the third is a decrease in retail rates. All are effective Saturday (Nov. 1).

Residential rates were increased by the PUC for the two Portland, OR-based utilities, Northwest Natural Gas Co. (14.5%) and Cascade Natural Gas Co. (5.4%), while rates were dropped 2.9% for Spokane, WA-based Avista Utilities. This is the annual adjustment the regulators allow each of the utilities to change their retail rates to reflect their actual wholesale costs of gas.

“The difference in the companies’ natural gas adjustments is due to different strategies for buying their natural gas supplies,” said a PUC spokesperson. The PUC listed three main factors affecting wholesale prices for the Oregon distribution utilities in 2008:

“This summer it was looking like the increase for Northwest Natural could be as high as 40%,” said PUC Chairman Lee Beyer. “Even at 14%, this will be difficult for many households to absorb given other economic pressures they are already facing. This makes it more important than ever to use energy wisely from turning the thermostat down a few degrees to contacting the Energy Trust of Oregon for an energy evaluation.”

On average, Northwest Natural residential bills will go up more than $10/month to about $85; in the winter months this could be a more than $20/month increase to about $160/month in January. Cascade residential customers would see a small average increase of about $4/month to $78, and $7/month more in the winter to $147/month. Avista’s monthly decreases will range from $2/month to $5/month, average and winter months, respectively.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.