Northwest Natural plans $32-million refund

Northwest Natural Gas Co. has asked state regulators for permission to give $32 million back to customers because of lower-than-expected natural gas costs. If approved by the state Public Utility Commission, the Portland-based gas utility would issue credits on the June bills of all customers, reflecting gas used between Nov. 1 and March 31. A residential customer who used 92 therms per month during that period would receive a credit of about $33, while a commercial customer that used 383 therms per month would receive about $137. While it is not unusual for a utility to credit customers when over-estimating commodity prices, NW Natural would typically hold the cost savings in a deferral account, and return it to customers as part of a bill reduction when it sets its annual rates each November. “Given the extremely tough economic conditions our customers are struggling with, we felt it was critical that these savings be refunded as soon as possible,” CEO Greg Kantor said in a news release. The company said it will continue to lock in lower-priced supplies for next winter’s heating season with plans this summer to file for an additional rate reduction. The utility is having discussions with the Washington Utilities and Transportation Commission for a similar refund to Washington state customers.