Contact Information: Contact: Jenna Cooper-Gross NW Natural jcg@nwnatural.com 503-226-4211, ext. 3511 503-880-8881
NW Natural Files for Lower-Than-Projected Rate Increase
Gas Company Takes Advantage of Falling Commodity Prices
| Source: NW Natural
PORTLAND, OR--(Marketwire - October 10, 2008) - Northwest Natural Gas Company, dba NW Natural
(NYSE : NWN ) today filed updated requests with the Public Utility Commission
of Oregon (OPUC) and the Washington Utilities and Transportation Commission
(WUTC) for rate increases to cover higher wholesale natural gas costs.
The Company is requesting a 14 percent rate increase in Oregon and a 20
percent rate increase in Washington for residential customers, which is
significantly below its original projections made last July. Despite the
recent declines in natural gas prices, an increase is required because
prices are still higher than they were at this time last year.
"Natural gas prices reached all-time highs in July when we made our initial
rate increase projection, but recently we've seen prices decrease," said
Randy Friedman, Director of Gas Supply. "Combine an economic slowdown with
greater gas production and you have all the ingredients for a decline in
prices."
NW Natural does not profit from higher natural gas costs. The company
passes gas costs through to customers without a markup. Last year, NW
Natural reduced rates by 8 percent in Oregon and 10 percent in Washington
as a result of lower gas costs.
Today's final rate change filing will be reviewed by the OPUC and WUTC. Any
changes to rates will take effect November 1, 2008.
An Oregon residential customer using 56 therms per month would see an
average monthly bill increase of about $10. A residential customer in
Washington using 62 therms per month would see an average monthly increase
of about $15.
In Oregon, the increase for commercial customers would be about 16 percent.
Washington commercial customers would see about a 21 percent increase.
"While recent price declines are good news, we still encourage customers to
prepare early for this winter by visiting nwnatural.com for energy
efficiency tips, payment plan options and information on energy assistance
funding," said Gregg Kantor, President and Chief Operating Officer.
About NW Natural
NW Natural is headquartered in Portland, Ore., and serves about 657,000
residential and business customers in Oregon and Southwest Washington. It
is the largest independent natural gas utility in the Pacific Northwest and
is one of the fastest-growing local distribution companies in the nation.
For more information about NW Natural, please visit nwnatural.com.