Docket UG-250610
Prepared by: Public Counsel Unit, Attorney General’s Office
The Public Counsel Unit of the Washington Attorney General’s Office (Public Counsel) represents the interests of residential and small business customers of electric, gas, water, and telecommunications companies and customers of transportation companies regulated by the Utilities Transportation Commission (“UTC” or “Commission”). Public Counsel advocates on behalf of customers before the Commission and courts regarding utility rates, affordability, mergers, business practices, service quality, energy efficiency, safety, and policy matters.
On This Page
- Northwest Natural Gas Company’s Rate Increase Proposal
- Proposed Settlement
- AGO Public Counsel’s Position
- Process for Commission Decision
- Submit a Comment Prior to the Public Comment Hearing
- Table 1: Average Monthly Increases by Dollar and Percentage
- Table 2: Fixed Base Monthly Customer Charge Increases
Northwest Natural Gas Company’s Rate Increase Proposal
Northwest Natural Gas Company (“NW Natural” or the “Company”) is a private, for-profit utility company which the state has licensed to operate as a monopoly in southern Washington.
On August 29, 2025, the “Company filed a general rate case to increase natural gas rates for Washington customers. If approved, the new rates go into effect on August 1, 2026. Information about the proposal can be found on the docket’s page on the UTC website, UG-250610.
The Company may only impose rate increases on customers that are fair, just, reasonable, equitable, and sufficient, under Washington law.
Proposed Settlement
Following this proposal, NW Natural engaged in negotiations with the Alliance of Western Energy Consumers (large industrial customer advocate), UTC Commission Staff, the AGO Public Counsel Unit, and The Energy Project (low-income customer advocate). All of these parties except for the AGO Public Counsel reached a settlement agreement which includes the following terms:
- Rate Increases for the Next Three Years. NW Natural would increase rates by $20.1 million in Rate Year 1, by an additional $7.7 million in Rate Year 2, and an additional $8.7 million in Rate Year 3. These rate increases would include an increase to the fixed base charge a customer pays each month. Tables 1 and 2 show how these rate increases would change customers’ monthly bill.
A full copy of the proposed settlement stipulation is available on the UTC’s website here.
AGO Public Counsel’s Position
Public Counsel participated in the settlement negotiations but did not join the settlement. Public Counsel believes that the rate increases in the settlement are not “fair, just, and reasonable.” Public Counsel believes improvements can be made on the terms about return on equity, depreciation rates, and inflation adjustments that would still allow Northwest Natural to maintain a healthy profit, while protecting customers from excessive rate increases.
If you have questions regarding the proposed settlement, Public Counsel’s position, or NW Natural’s rate case in general, you can contact Public Counsel by emailing: utility@atg.wa.gov, or by mail to our physical office at:
Washington Attorney General's Office, Public Counsel Unit,
800 Fifth Avenue, Suite 2000, Seattle, WA 98104.
Process for Commission Decision
On September 29, 2025, the UTC issued an order setting the rate case for formal adjudication on the grounds that “NW Natural’s requested increase might injuriously affect the rights and interests of the public, and NW Natural has not yet demonstrated that the increase would result in rates that are fair, just, reasonable, and sufficient.”
The next step is for the Commission will review the settlement agreement to decide if the terms are lawful, supported by an appropriate record, consistent with the public interest, and result in rates and outcomes that are fair, just, reasonable, equitable, and sufficient. If the Commission approves the proposed settlement as it is drafted, the proposed rate increases will go into effect as is.
Submit a Comment Prior to the Public Comment Hearing
UTC Commissioners appreciate hearing from members of the public about how the Company’s Proposal will affect them. The Commission is holding a virtual Public Comment Hearing on Thursday, April 30, 2026, at 6 p.m. You can participate remotely via the Zoom links below or by phone.
Join via Zoom by visiting the link below:
https://utc-wa-gov.zoom.us/j/87076194707?pwd=NVFZM5uPHpLAFdbXaHsb9RwOW7ibwl.1
Join via phone by calling: (253) 215-8782 and use Meeting ID: 870 7619 4707# and Passcode: 880958#
The public can additionally submit comments in the following ways:
- Via UTC web form at: utc.wa.gov/consumers/ (click on “Submit a Comment” link)
- By e-mail at: comments@utc.wa.gov
- By mail at: UTC, P.O. Box 47250, Olympia, WA 98504-7250
- By phone: 1-888-333-WUTC (9882)
Please include the following in any written comment: your name, mailing address, the name of the company (Northwest Natural Gas), and the Docket Number UG-250610. For more information, see the UTC’s webpage here: http://www.utc.wa.gov/, or call 1-800-562-6150.
For concerns involving the application of equity and justice in UTC and regulated companies' processes and decisions, you can reach out directly to equity-focused staff within the UTC by emailing EquityFeedback215@utc.wa.gov
Table 1: Average Monthly Increases by Dollar and Percentage
|
Rate Year 1 |
Rate Year 2 |
Rate Year 3 |
||||
|---|---|---|---|---|---|---|
|
Rate Schedule |
Dollar Increase |
Percent Increase |
Dollar Increase |
Percent Increase |
Dollar Increase |
Percent Increase |
|
1R* |
$5.67 |
20.6% |
$2.12 |
6.4% |
$2.57 |
7.3% |
|
1C** |
$18.52 |
20.9% |
$6.89 |
6.4% |
$8.38 |
7.3% |
|
2R*** |
$12.96 |
19.0% |
$4.18 |
5.1% |
$5.08 |
5.9% |
*Based on an average residential customer using 14.6 therms per month. This example models a customer who uses gas for non-primary heating, like pool heating, cooking and fireplace, clothes drying, and outbuilding heating.
**Based on an average commercial customer using 54.6 therms per month.
*** Based on an average residential customer using 54.5, 54.1, and 53.7 therms per month for RY1, RY2, and RY3, respectively. This example models a customer who uses gas for primary space and water heating.
Table 2: Fixed Base Monthly Customer Charge Increases
The monthly rate increases in Table 1 include increases to the monthly fixed base customer charge of either $0.50 or $1.00 per year:
|
Rate Year 1 |
Rate Year 2 |
Rate Year 3 |
||
|---|---|---|---|---|
|
Rate Schedule |
Current Charge |
Charge Starting Rate Year 1 |
Charge Starting Rate Year 2 |
Charge Starting Rate Year 3 |
|
1R |
$5.50/month |
$5.50/month |
$6.00/month |
$6.50/month |
|
1C |
$7.00/month |
$8.00/month |
$9.00/month |
$10.00/month |
|
2R |
$8.00/month |
$8.00/month |
$8.50/month |
$9.00/month |
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