Settlement increases customer bills over two years, but significantly less than the company’s initial request
LACEY, Wash. – The Washington Utilities and Transportation Commission (UTC) has approved a settlement agreement that sets new rates for Cascade Natural Gas (Cascade) customers over the next two years. The new rates will take effect March 1, 2025, and include measures to improve affordability and equity for customers.
Under the approved rates, Cascade’s natural gas revenue will increase by $29.8 million, or 7.88%, in the first year, starting March 1, 2025. In the second year, beginning March 1, 2026, revenue will increase by $10.8 million, or 2.64%. This is lower than the company’s original request for $43.8 million in the first year and $11.7 million in the second year.
A typical residential customer using 53 therms per month will see their bill increase by $6.04 per month in the first year and $2.06 per month in the second year. A typical commercial customer using 277 therms per month will see an increase of $23.55 per month in the first year and $8.18 per month in the second year.
The UTC-approved settlement changes how Cascade can recover pipeline costs by shifting those costs into base rates. A new tariff schedule will allow the company to recover deferred expenses related to COVID-19, over the next three years. Additionally, the settlement removes a portion of the rate case expenses from the revenue requirement, which lowers costs for customers.
To improve affordability and equity, Cascade will create a language access plan to better serve customers who speak languages other than English. The company will also track how much of customers’ income goes toward energy bills and how often customers face disconnections. This data will help assess the impacts of Cascade’s programs and if resources are fairly distributed to all customers.
As part of the agreement, Cascade will eliminate natural gas line extension allowances for residential and commercial customers by March 1, 2027. This change aims to align with Washington’s clean energy goals while maintaining customer affordability.
The commission’s decision ensures that Cascade’s rates remain fair, just, reasonable, and sufficient, while addressing affordability concerns for low-income and vulnerable customers. This settlement received support from all participating parties except for the Public Counsel Unit of the Washington Attorney General’s Office, which did not oppose it.
Kennewick-based Cascade Natural Gas Corporation serves more than 222,000 residential and business customers in 67 communities throughout Washington 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 equitable, safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
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