Northwest Natural Gas: OPUC resolves remaining open items in rate case

In a regulatory filing, Northwest Natural Gas (NWN) notes that the company’s Northwest Natural Gas Company subsidiary filed a request for a general rate case with the Public Utility Commission of Oregon. The filing requested a $154.9 annual revenue requirement increase, which included $34M related to an updated depreciation study. Prior to the Second Stipulation, NW Natural, the OPUC staff, CUB and AWEC reached a partial settlement on the cost of long-term debt of 4.712%. The Second Stipulation provides for a total revenue requirement increase of $95M over revenues from existing rates, which includes $9.6M related to an updated depreciation study, subject to completion of capital projects identified as being placed in service prior to the rate effective date. On October 25, 2024, the OPUC issued an order approving the Stipulations and resolving the remaining open items in the Rate Case. Along with resolving several non-revenue items, the OPUC affirmed its decision in NW Natural’s prior general rate case docket to phase out NW Natural’s line extension allowance by November 1, 2027. Additionally, the OPUC ordered a downward adjustment to rate base of $13.7M of undepreciated line extension costs, which we expect to result in a non-cash, pre-tax charge of approximately $13.7M, or approximately $10.1M after-tax, in the fourth quarter of 2024. The final order and adjustments for completed capital projects resulted in a revenue requirement increase of $93.3M over existing rates. Average rate base after final adjustments for completed capital projects was $2.09B or an increase of $334M since the last rate case. NW Natural expects new rates to take effect November 1, 2024.