AG Brown opposes Northwest Natural Gas Company’s steep rate hikes

On Friday, the Washington State Attorney General's Office challenged Northwest Natural Gas Company's (NW Natural) proposed rate increases and urged the Utilities & Transportation Commission (UTC) to reject a settlement agreement that would allow steep rate increases to go forward. NW Natural is a private, for-profit utility company which the state has licensed to operate as a monopoly in southwest Washington.

Through its Public Counsel Unit, the AG's office represents and advocates for Washington consumers. Utility companies may only impose rate increases on customers that are "fair, just, and reasonable" and are in the public interest. The Public Counsel opposes rate increases that do not meet these standards. The UTC is responsible for approving or rejecting such rate increases.

NW Natural serves 90,000 households in the Vancouver area. The company wants to increase its utility rates by $36.5 million. If that change is approved by the UTC, rates would increase by 19% in August 2026 or $12.96 per month for the average household. Rates would then increase by 5.1% in 2027, and 5.9% in 2028. By August 2028, the average customer's bill would have increased by $22.22 a month, or roughly $268 per year, compared with current rates. As the lawyer for the people of Washington, the AG's office argues that these increases are not "fair, just, and reasonable."

"The costs of living are out of control, and the last thing Washingtonians need are unjustified hikes to their utility bills," said Brown. "Utility companies provide critical services, but the push for profits should not forced onto the backs of captive consumers."

NW Natural has increased its dividend payouts to shareholders every quarter for the past 70 years. In 2025, it paid a total of $81 million to their shareholders. This means that, on average, 12% of customers' utility bills go to paying investors, rather than actually paying for utility service. NW Natural's biggest investors include venture capital firms like BlackRock, Vanguard, and State Street Corporation.

Customer utility bills also help pay NW Natural's executive salaries. NW Natural's CEO received total compensation of more than $4 million in 2024. The settlement agreement that the AG's office opposes would allow NW Natural to spend an additional $4 million on expenses related to executive pay, trade group memberships, and investor relations.

The rate increase before the UTC would guarantee NW Natural a return on equity (profit margin) of 9.5% over the next three years. The AG's office filed expert testimony with the UTC arguing that this profit margin is unjustifiably high and was calculated using an outdated methodology that the Federal Energy Regulatory Commission says "defies general financial logic." The office argues that the best available methodologies support a lower rate that would still allow Northwest Natural to maintain a healthy profit, while protecting customers from excessive rate increases.

The AG's office urges the UTC to reject the settlement agreement for not doing enough to protect Washington utility customers.

The UTC will host a virtual public comment hearing in this case at 6 p.m. on April 30. The public may participate through Zoom or phone. The Zoom link and phone participation information can be found on the UTC website at https://www.utc.wa.gov/event/88869.

Comments may also be sent to the Commission by email at [email protected], by mail at P.O. Box 47250, Olympia, WA 98504, or by phone at 888-333-9882 (toll-free).

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Washington's Attorney General serves the people and the state of Washington. As the state's largest law firm, the Attorney General's Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington's 39 counties. Visit www.atg.wa.gov to learn more.

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