NOTICE OF PROPOSED RATE INCREASE

Cascade Natural Gas Corporation proposes a 2.71 percent (or $5.9 million) increase in natural gas rates

KENNEWICK, WASHINGTON – Feb. 02, 2018 – On August 31, 2017, Cascade Natural Gas Corporation (Cascade) filed a general rate request with the Washington Utilities and Transportation Commission (WUTC) to increase gas base rates. If approved, the filed request would increase annual natural gas base revenues by $5.9 million (2.71 percent). However, the federal tax bill, the Tax Cuts and Jobs Act, will likely result in a decrease to a portion of this request. This request, as filed, includes a rate of return of 7.60 percent and 9.90 percent return on shareholder equity.

The WUTC will review Cascade’s request. It has up to 11 months to review the filing. If approved, changes will go into effect no later than August 1, 2018.

Capital investment in Cascade’s natural gas distribution system, as well as increased cost to operate and maintain that system, are the main drivers in Cascade’s request with the WUTC to increase prices.

 Bill Impact: The proposed rate will increase residential rates by 4.41%. The average residential customers using 54 therms per month will pay $2.09 more per month and the average industrial customer using 10,241 therms per month will pay $50.75 more per month.

Below is a chart showing what the typical customer in each customer class pays per month and what that customer would pay if the Company’s rate case proposal is approved.

Rate Schedule Current Basic Service Charge Proposed Basic Service Charge Current Rate Proposed Rate Percentage Change
Residential, 503 $4 $6 $0.79845 $0.80015 4.41%
Commercial, 504 $10 $15 $0.74505 $0.72617 0.0015%
Industrial, 505 $48 $75 -0.07%
First 500 $0.67288 $0.65772
Next 3,500 $0.63620 $0.62392
Over 4,000 $0.63065 $0.61881
Large Volume, 511 $100 $200 0.89%
First 500 $0.63152 $0.62021
Next 3,500 $0.59613 $0.58746
Over 4,000 $0.50859 $0.50645
Interruptible, 570 $130 $500 3.79%
First 30,000 $0.55050 $0.56113
Over 30,000 $0.49068 $0.49371
Transportation, 663 $500 $750 8.35%
First 100,000 $0.05837 $0.05970
Next 200,000 $0.02130 $0.02179
Next 200,000 $0.01294 $0.01324
Over 500,000 $0.00615 $0.00629

 

General Rate Case Information

A general rate case is the legal proceeding in which the WUTC will examine a utility’s operations and costs to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing the utility the opportunity to earn a fair return on its investments.

 The WUTC will conduct an investigation and hold hearings to examine the requested increase. The WUTC Staff, Cascade, Public Counsel, and other parties will participate and make recommendations to the WUTC.  The WUTC has the authority to set final rates based on the results of its investigation, which may be different from Cascade’s requested increase.

 Public Comment Hearing:  The WUTC will conduct public hearings to take comments from the public at the following locations:

March 20, 6 pm to 8 pm March 27, 6:00 pm to 8:00 pm April 4, 5:30 pm to 8:30 pm
Norm Dicks Government Center Kelso City Council Chamber Kennewick City Council Chamber
345 6th Street 203 S. Pacific 210 W. 6th Ave
Bremerton, WA 98337 Kelso, WA 98626 Kennewick, WA 99336

 

Share your comments with the WUTC in the following ways:

  • In person at a public hearing, (outlined in this notice).
  • On the WUTC website at www.utc.wa.gov, and click on “Submit a Comment”
  • By email to comments@utc.wa.gov
  • By phone at 888-333-9882
  • In writing to: WUTC, P.O. BOX 47250,Olympia, WA 98504-7250

 

Please include your name and mailing address, reference Cascade Natural Gas Corporation and Docket UG-170929.

The WUTC is committed to providing reasonable accommodations to participants with disabilities.

Contact WUTC at:  360-664-1243 or email: human_resources@utc.wa.gov. Public Counsel

The Public Counsel Unit of the Washington State Attorney General’s Office represents residential and small businesses in this process by. You may contact Public Counsel in writing:

Public Counsel For more information about Cascade Natural Gas
Attorney General of Washington Public Counsel: Cascade Rates Department
800 5th Ave., Suite 2000 www.atg.wa.gov/utilities-regulated 8113 W Grandridge Blvd
Seattle, WA 98104-3188 Kennewick WA 99336-7166
By email: utility@atg.wa.gov 888-522-1130
www.cngc.com

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