In a time where people have seen rising costs at every turn the last few years, here's something they may not have expected. Tens of thousands of Central Oregon natural gas customers are about to see their rates go down.
The Oregon Public Utilities Commission announced Thursday that it has approved a decrease in rates for Cascade Natural Gas customers, effective Friday.
Here is what PUC said customers can expect:
- Residential Customers - The monthly bill of a typical customer using an average of 57 therms per month will decrease by $9.47 or 13.2 percent, from $72.07 to $62.59.
- Commercial Customers - The monthly bill of a typical customer using an average of 256 therms per month will decrease by $46.54, or 16.9 percent, from $274.89 to $228.35.
- Industrial Customers - The monthly bill of a typical customer using an average of 1,682 therms per month will decrease by $345.50, or 19.6 percent, from $1,764.53 to $1,419.03.
PUC said the decrease is due mainly to the lower-than-expected price of natural gas last year as compared to the projections when rates were set. That resulted in over-collection from customers last year. Those extra funds have led to the new lower rates. A mild winter last year also contributed.
The commission said the "purchased gas adjustment (PGA), allows companies to pass through their actual cost of purchasing gas to customers without a markup on the price. The PGA combined with other rate-related filings also effective November 1 resulted in an overall decrease in customer rates."
Cascade Natural Gas serves more than 75,000 customers in the Bend region and parts of Northeast Oregon.
“Oregon’s purchased gas adjustment mechanism reflects that the cost of natural gas is driven largely by regional, national, and global factors outside the utility’s control, but it also creates incentives to keep utilities accountable for careful management within those market conditions,” said PUC Chair Megan Decker in a statement. “We are fortunate this year to see the stabilizing supply and demand of natural gas ease financial pressures on consumers.”
