Aug 03, 2016 – Cascade Natural Gas Corporation announced today that it has filed a Purchased Gas Adjustment (PGA) with the Washington Utilities and Transportation Commission to reflect the annual adjustment in the cost of natural gas. The overall request is an 8.53 percent decrease for Cascade customers in Washington.
“The bulk of this decrease request is associated with the decrease in the commodity cost of gas,” said Nicole Kivisto, president and CEO of Cascade Natural Gas. “We are pleased to be able to pass these lower prices onto our customers. The abundant supply of natural gas currently being produced and the record amount of natural gas in storage are the main drivers for lower gas costs.”
The cost of natural gas makes up the largest segment of a customer’s bill and is a straight pass-through cost to customers. Cascade does not make a return on the cost of gas.
The effect of the filing means a residential customer using 49 therms a month can expect a decrease of $2.92 on average per month, or approximately $35.04 for a 12-month period. A commercial customer using an average of 271 therms a month can expect a decrease of $23.37 per month or approximately $280.45 for a 12-month period.
Cascade was recently granted a $4 million (1.62 percent) general rate increase by the UTC, which will go into effect on Sept. 1. The net effect of the general rate increase and the PGA decrease will be an overall rate decrease for customers of $13.6 million on an annual basis, or 6.59 percent. The net effect of the general rate increase and the PGA decrease means a residential customer using 49 therms a month can expect a decrease of $1.61 on average.
A PGA is a mechanism designed to pass the actual costs of gas supplies to customers. It is very common for the company to either under or over collect through the year as the natural gas market changes throughout the year. The actual purchase price usually differs from the projected price.
The proposed rate decrease is expected to go into effect on Sept. 1, upon UTC approval.