Cascade Natural Gas seeks small rate hike

Cascade Natural Gas Corp. announced Monday it has filed a Purchased Gas Adjustment (PGA) with the Oregon Public Utility Commission to reflect the increase in the cost of natural gas over the past year. It said the request means an approximately 1 percent increase for Cascade customers in Oregon.

“Last winter was very cold, which drew down reserves to their lowest levels since 2003. A lot of natural gas is going back into storage, which has created a slight increase in the demand on natural gas,” 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,” Madison added.

The request means a residential customer using 55 therms a month can expect an increase of $0.37 on average per month, or approximately $4.44 for a 12-month period. A commercial customer using an average of 230 therms a month can expect an increase of $0.60 per month or approximately $7.20 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. Also, the projected price is based on average weather conditions.

The proposed rate increase is expected to go into effect on Nov. 1, 2014, upon PUC approval.