NW Natural files a Purchased Gas Adjustment (PGA) to reflect changes in the expected cost of natural gas for the upcoming winter heating season and account for the differences between the estimated and actual cost of natural gas from the previous year.

This year’s PGA comes at a time when there are increases in the wholesale cost of natural gas because of inflationary pressures, global disruption, and overall fluctuations in the energy market.

NW Natural does not mark-up the price of gas. The PGA is a passthrough of costs for the wholesale price and delivery of natural gas.

Even in this period of high inflation and increased commodity costs, we believe NW Natural customers will be paying just slightly more than they did 15 years ago for their natural gas bills based on our preliminary estimates.

NW Natural has taken several steps to maximize affordability, such as locking in gas purchases at lower rates, smart investments in energy storage, and energy efficiency measures.

• NW Natural’s purchasing process locks in future prices to help manage costs for customers.
• Smart investments in gas storage in the 1980s continue to reap benefits for customers today. Storage helps moderate gas costs during the core heating season
• NW Natural was one of the first gas utilities in the nation to implement a rate structure based on decoupling, beginning in 2002. Decoupling is designed to break the link between revenues and the quantity of gas used by customers, removing any financial incentive a utility might have to discourage customers from conserving energy. Today more than 75% of our gas utility revenues are decoupled.

NW Natural offers several payment plans, including Equal Pay where we divide your annual gas usage into 11 equal monthly payments so you can count on predictable bills and better manage your household budget.

Other payment assistance options are available. And this fall, we will begin offering gas bill discounts of 15% - 40% for some households in Oregon whose income is below the state’s median income level. Stay tuned for updates.

We also partner with community organizations to offer free home energy improvements for qualifying customers and energy-saving tips to help lower bills year ‘round, such as free weatherization services and energy-saving tips.

NW Natural’s purchasing process locks in future prices to help manage costs for customers. To the extent possible, this helps mitigate short-term volatility for customers. Future outlooks are uncertain for now, but some projections show that production could improve by the winter and if that happens, prices could begin to stabilize in the spring.

Our rates are regulated and approved by the Public Utility Commission of Oregon (OPUC) and the Washington Utilities and Transportation Commission (WUTC). The current charges on your bill are based on up to five components:

• Monthly service or minimum charge
• Gas usage cost
• Smart Energy carbon offset program charge
• Local taxes
• Public purpose charge

Overall, about 90% of your bill goes toward the cost of gas, delivery and the services provided to you as a customer, with the remaining 10% going toward regulated rate of return on NW Natural’s investment in the gas system. More information is available about how to understand your natural gas bill.