Cascade Natural Gas plans 7.1 percent rate cut

Cascade Natural Gas Corporation announced Wednesday that it has filed a Purchased Gas Adjustment with the Oregon Public Utility Commission to reflect the decrease in pipeline capacity, reservation and storage for natural gas.

The overall request, which also includes the end of a year-long refund, means an approximately 7.1 percent decrease for Cascade customers in Oregon.

“Changes in what Cascade pays for the cost of natural gas and transportation services has decreased, which allows us to pass along those savings to our Oregon customers,” said Scott Madison, executive vice president and general manager for Cascade. “The cost of gas makes up the largest segment of a customer’s bill and is a pass-through cost to customers, so this decrease will translate into a nice cost reduction for our customers.”

The request, coupled with the end of a year-long refund, means a residential customer using 56 therms a month can expect a decrease of $3.56 on average per month, or approximately $43 for a 12-month period. A commercial customer using an average of 236 therms a month can expect a decrease of $14.92 per month or approximately $179 for a 12-month period.

A PGA is a mechanism designed to pass the actual costs of gas supplies to customers. It is very common for the company to either under or over collect through the year as the natural gas market changes throughout the year. The actual purchase price usually differs from the projected price.

The proposed rate increase is expected to go into effect on Nov. 1, upon PUC approval.