Gas company pares rate-hike bid

Clark County residential customers of Northwest Natural Gas Co. are likely to see a rate increase next month, but it won’t be as much as first expected.

The Portland-based utility on Friday asked regulators for a 20 percent rate hike effective Nov. 1 for its 65,000 Clark County customers, a lower increase than the 31 percent hike requested in July.

A typical residential customer who uses 62 therms perm month would see an average monthly increase of about $15, according to a Northwest Natural press release, which said natural gas prices are still higher than 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.

He attributed declining prices to the dual forces of economic slowdown and increased gas production.

In July, Northwest Natural had purchased about 30 percent of its supplies for the coming winter.

The company continued to buy supplies through the summer, taking advantage of declining prices for the volatile commodity.

State regulators from the Washington Utilities and Transportation Commission will have to approve the rate hike, a “pass-through” cost that does not increase profits for Northwest Natural.

The company is required by state law to adjust rates each year to reflect the changing wholesale costs of natural gas.

Despite the lowered increase, the utility’s president, Gregg Kantor, advised customers to prepare early to pay what could be higher heating bills for many this winter.

Kantor said customers can visit the utility’s Web site at nwnatural.com for energy-saving tips, payment plan options and information on energy assistance funding.