The three major natural gas distribution utilities serving Oregon told a workshop for state energy officials and stakeholders Tuesday to expect retail natural gas prices to increase this winter in the range of 10-40%, with the state’s biggest distributor predicting hikes in the 35-40% range.

The annual half-day workshop convened by the Oregon Public Utility Commission (PUC) caused the state regulatory panel to warn retail gas utility customers to brace themselves for what the regulators called “an expected sharp rise in prices.” The PUC summarized this as an outcome from the collective opinions expressed at its workshop.

Portland-based Northwest Natural Gas Corp., the state’s biggest gas distribution utility, told regulators it expects its retail rates to go up 35-40% this winter; Seattle-based Cascade Natural Gas, now a subsidiary of North Dakota-based MDU Resources, predicted its rates would go up 15-20%; and Spokane, WA-based Avista Utilities expects rates for its Oregon customers to rise 10-15%.

“Generally, the PUC was told that natural gas prices this coming heating season likely will be significantly higher than a year ago due to growing demand, tight supplies and international pressures as Oregon’s natural gas companies secure supplies for their customers for the next year and beyond,” said a PUC spokesperson.

PUC gas analyst Ken Zimmerman said this year’s trend is “very much the opposite” of what the state faced last year. “Demand is robust while supplies remain tight. As a result, wholesale prices are significantly higher than a year ago,” Zimmerman said.

PUC Chairman Lee Beyer called the workshop presentations “sobering news,” in light of the other general negative economic pressures on consumers this year. “I can’t urge strongly enough that customers should start thinking now about how they can use less natural gas this coming winter,” Beyer said.

Oregon receives the bulk of its gas supplies from Western Canada and the U.S. Rockies, but PUC officials said “wild cards” that could push prices even higher are extensive hurricanes that disrupt Gulf of Mexico supplies and any unforeseen major interstate gas pipeline disruptions.

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