Lower rates for Cascade Natural Gas customers start today - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Lower rates for Cascade Natural Gas customers start today

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OLYMPIA, WA – Customers of Cascade Natural Gas Corporation will see lower bills this winter due to lower gas costs.

The Washington Utilities and Transportation Commission approved a decrease for the company’s natural gas customers of $17.8 million, or 8.7 percent, effective today.

The decrease is the result of two decisions by the commission, one approving the company’s Purchased Gas Adjustment, and the other approving an all-party settlement in the company’s general rate case. Both decisions are effective Sept. 1.

Natural gas companies are required to submit Purchased Gas Cost Adjustment filings at least every 15 months to adjust rates based on the constantly changing cost of natural gas in the wholesale market. The total cost of gas is passed through to customers, which means that the company does not earn a return on, or lose money on, prudently incurred gas costs.

In July, the commission approved an all-party settlement agreement resulting in a rate increase of $4 million, or 1.6 percent. A condition of the settlement agreement was that Cascade would file its PGA by Aug. 1 to be effective on Sept. 1, to mitigate the impact of the rate increase on customers.

The overall impact of the two rate adjustments for average residential customers using 49 therms a month will be a decrease of $2.98 for a total monthly bill of $43.98.