A typical Salem home heated with natural gas will pay about $4 more per month starting in November after state regulators approved a rate increase for NW Natural.
The Oregon Public Utility Commission announced Wednesday that the gas utility’s average bill for a residential customer will go up by 4.5%. That reflects a larger rate increase which is offset by a decrease in the annual cost of purchasing gas.
The increase takes effect Nov. 1.
Residential customers using an average amount of gas, 55 therms, would pay $82.74 monthly, up from $78.78, according to NW Natural spokesman Jason Cox.
The amount that rates will increase depends on the type of customer and energy use.
The average rate across all customer types will increase by about 9.98%, lower than the 16.7% that NW Natural requested, the state commission said in a news release. The final rate increase is based on an agreement between the commission, consumer groups and NW Natural.
State regulators didn’t allow NW Natural to pass some costs along to consumers.
Existing customers currently pay subsidies to connect new customers to the natural gas system, but commissioners upheld their decision made last year to phase down those fees and completely eliminate them by November 2027. They cited “high levels of uncertainty” about whether such subsidies would end up benefiting existing customers long-term, according to the news release.
Cox said that the gas utility recently expanded its income-based bill discount program, offering between 15% and 80% off monthly bills for customers with qualifying incomes.
NW Natural has raised its average monthly gas prices for residential customers by $18.24 over the last three years, up from $64.50 in 2021.
The rate increase comes as other utilities’ prices are also rising.
The Salem City Council is voting Nov. 12 on whether to charge homeowners about $5 more per month for water and sewage service.
If approved, the 4.5% rate increase would take effect in January. Another 4.5% increase is proposed for January 2026. The funds would cover mostly rising day-to-day operating costs of Salem’s water, stormwater and sewage systems.
Portland General Electric’s rate case is still pending, according to Kandi Young, spokeswoman for the public utility commission. She said a decision is expected on Dec. 20, and any rate adjustment would go into effect in January.
Contact reporter Ardeshir Tabrizian: [email protected] or 503-929-3053.
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Ardeshir Tabrizian has covered criminal justice and housing for Salem Reporter since September 2021. As an Oregon native, his award-winning watchdog journalism has traversed the state. He has done reporting for The Oregonian, Eugene Weekly and Malheur Enterprise.