Oregon regulators have allowed the state’s three major gas utilities, Avista, Cascade Natural Gas and Northwest Natural Gas, to raise their rates by between 1.9% and 15.4% because of higher commodity costs. The rate changes take effect Oct. 1.

The Oregon Public Utility Commission (OPUC) warned the state’s gas consumers Tuesday to expect higher natural gas bills this winter. Wholesale gas prices are 35% higher than a year ago, and year-ago prices were 50% higher than the prior year.

“We know that any increase can be difficult for households and businesses to absorb. However, although wholesale prices are higher due to variety of market forces, fortunately they are not as high as we previously expected,” Commission Chairman Lee Beyer said.

The OPUC adjusts utility rates once a year to reflect changes in past and projected wholesale prices. The companies make no additional profit from these rate adjustments.

According to the new changes, the monthly bill for a typical residential customer of Northwest Natural who uses 61.5 therms will increase by 4.5%. The typical customer’s bill will go from $60.04 to $62.71, an increase of $2.67. Commercial and industrial customers will see an increase of 4.9-5.6%. Northwest Natural customers received an overall 1.1% increase Sept. 1 due to a general rate case. Northwest Natural serves about 501,224 customers.

Residential bills for Avista’s customers will increase by 12.25%. The bill for a typical residential customer using 55 therms per month will go from $43.09 to $48.37, an increase of $5.28. Rates for industrial and commercial customers will increase from 14.5 to 15.4%. Avista serves about 82,264 Oregon customers. The OPUC also will issue a decision soon on the company’s general rate case, which will take effect Oct. 1.

“This is a difficult decision. However, it’s a fact wholesale natural gas prices are higher,” Commissioner Ray Baum said. “That’s little consolation though for households on fixed incomes.”

The monthly bill for a typical residential customer of Cascade who uses 63 therms will increase by 1.9%. The typical customer’s bill will go from $58.82 to $59.95, an increase of $1.13. Commercial and industrial customers will see an increase of 2 to 2.6%. Cascade serves 46,910 customers in central and northeastern Oregon.

With rates on the rise, the OPUC told consumers to consider doing to reduce their energy costs, including a budget plan in which they make equal payments over a 12-month period. Turning the thermostat down also can save up to 3% for each degree of reduction.

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