New Oregon rates will raise Cascade Natural Gas bills starting October 31

BEND, Ore. (KTVZ) -- The Oregon Public Utility Commission approved new rates and program updates for Cascade Natural Gas customers, effective Saturday, Oct. 31.

Under the approved rate decision, a typical residential customer using 57 therms per month will see a monthly bill increase of approximately $7.38, or about 10.7%.

The rate adjustments combine outcomes from Cascade's general rate case and its annual Purchased Gas Adjustment filing, which updates customer rates based on changes in wholesale natural gas costs. Three partial stipulations reached among participating parties resulted in a smaller rate increase than Cascade had originally requested.

The general rate case portion of the approval allows Cascade to recover costs for system upgrades, maintenance, environmental compliance and new investments. It also updates customer programs and revises regulatory schedules that determine how costs are assigned across customer classes.

The annual PGA filing reflects projected natural gas costs for the upcoming year while reconciling actual expenses from the previous year against earlier forecasts.

These energy costs are passed directly to customers without any corporate profit margin added by Cascade. Lower wholesale natural gas prices and reduced energy usage during an unusually warm winter contributed to a decrease in this year's PGA component.

In addition to rate adjustments, the decision includes policy changes to existing utility programs. The Commission approved a three-year phase-out of line extension allowances, which previously helped offset connection costs for new residential and commercial natural gas customers. The order also updates cost recovery schedules for Cascade's Climate Protection Program.

As part of the approved updates, the Commission established a pilot program offering a $1,500 incentive to eligible customers who install qualifying heat pump equipment. Commission Chair Letha Tawney explained the considerations behind the regulator's decision.

“Cascade's filings involved complex issues, ranging from cost recovery to climate compliance,” Tawney said. “These decisions balance customer impacts with Oregon's energy and climate goals and they improve transparency through required studies and future filings.”

The Purchased Gas Adjustment portion of the decision will undergo further review by the Oregon Public Utility Commission, which could result in potential future refunds for customers.