The filing begins a comprehensive regulatory review of NW Natural’s general rates that should be completed within 12 months. If approved, the new rates will result in about a $5 per month increase for the average residential customer using 61 therms.
NW Natural’s proposed rate change follows about a 10% rate reduction for residential and business customers last fall due to lower commodity costs and the company’s gas purchasing strategies.
NW Natural is seeking a rate change to cover increased operating costs and investments in the distribution system. The company is also proposing a rate mechanism that supports conservation and is designed to break the link between company earnings and the quantity of gas used by customers.
The proposed rate increase does not include any changes in rates for gas costs, which are set annually before the heating season. As part of this filing, the company is requesting a return on equity of 10.65%.
