LACEY — State regulators on Thursday approved a multi-year rate plan for Northwest Natural Gas that will raise bills for Southwest Washington customers beginning August 1, though the increases are smaller than the company originally sought.
The Washington Utilities and Transportation Commission issued an order setting the amount of revenue the Portland-based utility can collect from its customers over the next three years. Northwest Natural, also known as NW Natural, is the largest standalone natural gas utility in the state.
Residential customers using an average of 54 therms per month will see their bills rise by $12.81 starting Aug. 1, 2026. Additional increases of $4.94 take effect Aug. 1, 2027, and $5.24 on Aug. 1, 2028.The commission adopted a compromise reached by the company, commission staff and other parties, including low-income advocates. Regulators attached two conditions to the plan.
First, the commission removed a proposed geothermal heating and cooling project in Vancouver from customer rates after a major drop in expected grant funding. The company may seek approval again if circumstances change. Second, the commission excluded all remaining charitable expenses from the rates. State rules prohibit utilities from charging customers for company donations.
The commission left unchanged Northwest Natural’s tariff for line extension allowances, which helps cover connection costs for new gas customers. The Public Counsel Unit of the state attorney general’s office opposed that decision and the ongoing fees for new connections.
The order includes additional customer protections. Beginning Nov. 1, the company cannot disconnect gas service for nonpayment until a past-due balance reaches at least $250, up from the previous $150 threshold. Agencies that collect debt for Northwest Natural may no longer report late gas bill payments to credit bureaus.
Northwest Natural must develop a plan by Dec. 31 to provide customers with information and bill details in their preferred language. Every two to four years, the utility will review the share of household income spent on energy bills to help ensure low-income assistance programs remain effective.
The new rates and protection rules take effect Aug. 1.Northwest Natural provides natural gas service to approximately 2 million people in more than 140 communities through 800,000 meters in Oregon and southwest Washington. According to NW Natural’s Washington tariff and company information, service covers:
- Unincorporated Clark County
- Vancouver
- Battle Ground
- Camas
- Washougal
- Ridgefield
- La Center
- North Bonneville
- Carson (and adjacent territory)
- White Salmon
- Bingen
- Klickitat
- Dallesport (and adjacent territory)
The Utilities and Transportation Commission regulates investor-owned electric and natural gas utilities in Washington. It works to ensure regulated companies provide safe, equitable and reliable service at reasonable rates while earning a fair return.
Author: Mario Lotmore
