NW Natural will offer bill discounts for low-income Oregonians under new state program
A natural gas meter outside a Salem home (Rachel Alexander/Salem Reporter)
The Oregon Public Utility Commission approved a discount on monthly natural gas bills for low-income customers which will be available this fall.
The change was announced Thursday and applies to customers earning 60% or less of Oregon’s median income level.
A two-person household would need an annual income of $38,373 to fall at or below 60% of the state median income. A four-person household would have an annual income of $56,430. A chart provided by the state of Oregon and the U.S. Department of Health and Human Services details the financial requirements for households with up to 12 people.
“Historically, income was not considered in energy rates,” said Megan Decker, utility commission chair, in a prepared statement. “This program will help provide relief to families who typically pay a higher percentage of their income to cover the cost of necessary utility services. We appreciate the collaboration among NW Natural, many organizations representing customers, and (utility commission) staff to deliver a strong program.”
Discounts will be calculated as a percentage of the bill and are broken into four levels ranging from Tier 0-Tier 4, which include discounts ranging from 15% to 40% on monthly bills.
Tier 0 would include a 40% discount if the household income is at or below 15% of the state median income level. Tier 1 would provide a 25% discount for a household at or below 16%-30% of the state median income level, Tier 2 offers a 20% discount for those 31%-45% of the state median income and Tier 3 is a 15% discount for households 46%-60% of the state median income.
The cost of providing the discount will be paid by NW Natural customers through a new charge on monthly bills across all customer types. That charge becomes effective Nov. 1, 2022. According to a statement regarding the discount, customers using an average of 53 therms per month will see an increase of about 17 cents per bill–about a 0.30% increase.
House Bill 2475, which was passed during the 2021 Legislative Session, allows the utility to consider the financial burden of energy costs when making decisions about rates.
Customers can apply for the discounts beginning this fall by contacting their local community action agency or NW Natural at nwnatural.com/account/payment-assistance or by calling 800-422-4012.
-Caitlyn May
