Washington Commission Approves Two-Year Rate Plan for Cascade Natural Gas

The Washington Utilities and Transportation Commission on Feb. 24 approved a settlement establishing new rates for Cascade Natural Gas consumers for the next two years.The new rates will come into effect on March 1, 2025 and incorporate decarbonization and affordability measures for consumers. The settlement raises customer bills, but much less than the company’s original request.

During the first year, Cascade’s natural gas revenue will increase by $29.8 million, or 7.88 percent, which is lower than the company’s original request of $43.8 million. In the second year, beginning March 1, 2026, revenue will rise by $10.8 million, or 2.64 percent, compared to the initial request of $11.7 million.

The commission’s approval modifies Cascade’s cost recovery mechanism for pipeline costs by transferring them into base rates. The approved tariff schedule enables Cascade to recover deferred COVID-19 costs over the next three years.

To align with Washington’s clean energy objectives, while maintaining customer affordability, Cascade agreed to phase out natural gas line extension allowances for residential and commercial users by March 1, 2027. Washington state has set ambitious clean energy goals and decarbonization efforts, with the state announcing that it had achieved its 2020 greenhouse gas emissions target. A report from the Washington Department of Ecology released earlier this year stated that Washington’s greenhouse gas emissions declined 13.8 percent during 2020. Measures to reduce natural gas consumption by utilities and improve energy efficiency are key to achieving the state’s current goal to reduce gas emissions by 95 percent by 2050.