The Washington Utilities and Transportation Commission (UTC) approved Tuesday rate reductions for Avista Corporation, Cascade Natural Gas, NW Natural and Puget Sound Energy natural gas customers, effective Nov. 1.
The rate changes are due in part to Purchased Gas Cost Adjustment (PGA) filings. Natural gas companies must submit PGA filings at least every 15 months to adjust rates based on the changing cost of natural gas in the wholesale market. The total cost of gas is passed on to customers, and companies do not profit from or lose money on gas purchases.
Total gas rates among Washington’s investor-owned utilities vary due to regional differences in monthly residential usage, gas purchasing practices and the projects and programs undertaken by each utility.
Another factor influencing the rate changes are a revenue decoupling mechanism, which allows utility revenues to be “decoupled” from sales, which eliminates the financial disincentive to invest in conservation and energy efficiency. The utility’s recovery of fixed costs does not depend on the volume of its energy sales but is instead determined on a per-customer basis.
The average bill for a typical Avista residential natural gas customer in eastern Washington using 65 therms will decrease by 10.5 percent, or $5.37 a month, for an average monthly bill of $45.85. The rate changes for Avista are due to PGA and the revenue decoupling mechanism.
The average bill for a typical Cascade residential customer using 54 therms a month will decrease by 7.9 percent, or about $4.07, for an average monthly bill of $47.62. The rate changes for Cascade are due to PGA, the revenue decoupling mechanism, costs of pipeline replacement, conservation programs and some effects of the 2017 federal Tax Cuts and Jobs Act.
The typical NW Natural residential customer using 57 therms a month will see a reduction of 7.2 percent, or about $3.81 a month, for an average monthly bill of $48.92. The rate changes for NW Natural are due to PGA, low-income weatherization, bill assistance, conservation programs and a change in company organization.
PSE’s typical residential natural gas customer using 64 therms a month will see a reduction of 9.2 percent, or $6.02, for an average monthly bill of $59.16. Rate changes for PSE are due to PGA and the costs of a commission-approved pipeline replacement program.
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