Oregon’s three natural gas utilities predict no increase in natural gas prices over the next two years.
Oregon’s three natural gas utilities said their prices would remain unchanged or slightly lower in an annual price outlook presentation to the Oregon Public Utility Commission Tuesday.
A recession-era drop in industrial demand for natural gas combined with a surplus of supply from drilling in shale gas formations have caused gas prices to drop.
Utilities’ gas costs are estimated ahead of time and built into rates without a markup. If the estimates turn out to be dramatically different from market reality, ratepayers might see an adjustment later.
The state’s largest gas utility, NW Natural, for example, refunded $36 million to customers this time last year and lowered rates by 16 percent in November as falling demand and a surplus of supplies and stored inventories translated to plunging prices.
Read more at OregonLive.com.