Docket number: UG-200568
Editor’s note: This news release reflects the position of energy staff of the Washington Utilities and Transportation Commission (UTC) and NOT the views of the three-member commission. It discusses staff testimony that the commissioners have not yet reviewed. Any positions taken or comments offered by the commission staff regarding this proceeding should be attributed clearly to staff members and NOT to the UTC.
UTC staff recommend rate decrease, not increase, for Cascade customers
Virtual public comment hearing Jan. 26
OLYMPIA, Wash. – Staff of the Utilities and Transportation Commission recommend a rate decrease for Cascade Natural Gas customers.
In testimony filed Thursday, UTC staff found that Cascade’s 5.5% requested revenue increase is not necessary to cover company costs, and is not in the best interest of customers, including those facing significant pandemic-related financial hardships.
Under staff’s proposal, the average residential customer using 56 therms a month would see a bill of $56.61, which is a decrease of $0.11 or -0.19%.
The UTC will hold a virtual public comment hearing at 6 p.m. on Jan. 26, 2021 for customers who want to comment on the rate proposal.
Customers can also submit comments:
• online at www.utc.wa.gov/comments;
• via email to comment@utc.wa.gov;
• by mail to P.O. Box 47250, Olympia, WA., 98504; or
• toll-free at 1-888-333-9882.
The three-member commission, which is not bound by the company’s request or staff’s testimony, will make a final decision on the utility’s rate hike request this spring. New rates would go into effect on May 21, 2021.
In its request, Cascade cited a $14.3 million revenue deficit. UTC staff found fault with the company’s submitted costs, and instead calculated a revenue surplus of $508,968. To avoid a future surplus, staff recommend the company reduce rates by the surplus amount.
A significant part of the company’s request was $66 million in projected plant investments for 2020. UTC staff verified that Cascade only completed four projects totaling $6.9 million.
UTC staff objected to Cascade’s request to increase its rate of return to 7.54%, recommending the commission instead set the company’s rate of return to 6.93%.
Cascade also requested $1 million to increase employee salaries by 3%, which if approved would be the third year in a row for such a wage increase. UTC staff recommended that the commission deny this request.
Kennewick-based Cascade Natural Gas Corporation serves almost 220,000 residential and business customers in 68 communities throughout the state, including Aberdeen, Bellingham, Bremerton, Kennewick, Longview, Moses Lake, Mount Vernon, Sunnyside, Walla Walla, Wenatchee, and Yakima.
The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
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