Cascade Natural Gas bills to jump 20% this month. Here’s why it is going up

A Washington state commission has approved a Cascade Natural Gas rate hike that will add about $13.50 more to the average monthly home bill.

The rate hike takes effect Tuesday, Nov. 1, after approval by the Washington Utilities and Transportation Commission.

It will boost the average monthly home bill to $74.50, which is based on 54 therms a month.

The increase reflects higher nationwide wholesale natural gas prices paid by Cascade, rather than an increase in the profit it will make.

All four of Washington state’s investor-owned natural gas utilities are being allowed to raise rates, with Cascade having the largest increase by percentage.

The residential rates at Cascade Natural Gas, based in Kennewick, are increasing 20% monthly.

NW Natural is increase monthly rates by 18% but will spread the increase out for an average monthly increase of 13% for an average bill of $76.70.

Puget Sound Energy’s costs are going up 17% during the winter, which would make an average winter bill of $131 per month, but it will spread costs out through months with lower demand for an average winter increase of 12%.

Avista Corp.’s costs are increasing 12% during the winter, but it will spread its costs out for an average monthly increase of 8% for an average monthly bill of $133.

Cascade Natural Gas said it chose not to spread the cost increase out through low demand months for natural gas because its customers already pay higher electric bills for cooling in the summer.

Natural gas rates up nationwide

The U.S. Energy Information Administration is predicting that natural gas rates nationwide will increase by 22% during the coming winter heating season.

Regulators in Oregon this month approved natural gas utility rate increases as high as 25% and one Colorado utility will be charging gas prices that are 54% higher than a year ago, according to the Washington state commission.

Natural gas production has slowed while demand has increased, resulting in increased wholesale costs for Washington utilities, the commission said.

The war in Ukraine has forced European nations that have historically relied on imports of Russian gas to seek liquified natural gas from other sources, including the United States, further increasing demand, it said.

The variation in price increases among Washington utilities is due to regional differences in monthly residential use, supply sources and gas purchasing practices, among other differences, the commission said.

“We are aware that increasing natural gas rates when people are already facing inflation presents challenges for many Washingtonians,” said commission Chairman Dave Danner. “These increases are due to global events, and while we have been able to mitigate some of the impacts on customers, there is little we can do at the state level to avoid them.”

Help on Cascade bills

Instead, the commission is focusing on making sure that natural gas customers have access to bill assistance, payment plans and other options to manage higher gas prices.

Cascade Natural Gas offers long-term payment arrangement plans and weatherization assistance programs.

It works with Community Action agencies in individual communities on grant programs for paying past due balances, future bills and reconnection fees. The programs include:

▪ Grants of up to $1,000 are available for households with incomes up to 150% of the federal poverty level. For a family of four, that is about $41,600. The federal funding is distributed through the Washington state Department of Commerce.

▪ Grants of up to $500 are available from the Washington Energy Assistance Fund for households with incomes up to $200 of the federal poverty level. For a family of four, that is $55,500.

▪ Grants of $50 to $200 are available for winter help for households with up to 200% of the federal poverty level.

For information on contacting Community Action, call 211. Cascade Natural Gas also posts more information about bill assistance programs at cngc.com.

The company also is working to expand a discount program offered to its low-income customers in Oregon to those in Washington.

Cascade has more than 225,000 residential and business customers in 68 communities across Washington state, including the Tri-Cities, Walla Walla and Bellingham.