SALEM, Ore. – The Oregon Public Utility Commission (PUC) recently approved a rate increase that goes into effect October 31, 2025. New rates are a combined result of NW Natural’s general rate case, the decrease in natural gas costs, and other annual adjustments. The update to general rates is the result of a compromise between PUC staff, NW Natural, and consumer advocates.
Customer Impact
The combined result of the reduced general rate increase and other annual filings means the monthly bill of typical residential customer is expected to increase by $4.38 or 5.4%, for a new monthly bill of about $85.95. The amount rates will increase for each customer varies depending on customer type (single-family or multi-family residential, commercial, or industrial) and energy usage.
NW Natural originally requested to increase the revenue collected from all customers in its general rate case by $59.4 million, but the PUC approved a settlement between parties which reduced the increase to $24.74 million. NW Natural identifies the drivers for the general rates increase as capital investments, such as the modernization of information technology and services systems, construction of seismically secure resource centers, the upgrade of distribution systems and storage operations, and implementation of a meter modernization program. Additionally, each year the PUC reviews the actual cost of natural gas and approves adjustments to rates accordingly through a process called the Purchased Gas Adjustment (PGA). The PGA requires utilities to pass through the cost of purchasing natural gas to customers without a markup on the price. This year, customers receive a credit due to moderate natural gas prices and the return of unneeded funds from last year. As a result, the general rates decision, PGA, and other annual adjustment filings resulted in an increase in customer rates.
“We appreciate the hard work of PUC staff and stakeholders as well as NW Natural’s willingness to reach a compromise that significantly reduced the general rate case revenue requirement from the original request,” said Letha Tawney, Commission Chair. “The approved increase balances the utility’s need to recover the cost of providing safe service with the Commission’s obligation to protect customers—particularly the most vulnerable customers–from unnecessary rate impacts. Thanks to House Bill 3179, customers can be assured their bills moving forward will not increase during the winter heating season, giving families more predictability when they need it most.”
Manage Energy Use and Bills
- Explore rebates and energy-saving tips through the Energy Trust of Oregon.
- Learn about bill assistance programs, help with past-due bills, and the Budget Pay Program that spreads costs evenly throughout the year by calling NW Natural at 800-422-4012 or visit their website.
- Reach out to local Community Action agencies to find out what other support is available.
NW Natural serves nearly 700,000 customers in northwest Oregon.
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