On October 25, 2024, the Oregon Public Utility Commission (OPUC) issued an order approving all-party settlements in NW Natural's general rate case. The order increased the annual revenue requirement by $93.3 million, incorporating final adjustments for capital projects placed into service and a depreciation study.
New rates in Oregon became effective on November 1, 2024, leading to an average 4.7% increase for residential customers. The approved capital structure includes 50% common equity and 50% long-term debt, with a 9.4% return on equity and a rate base of $2.09 billion, marking a $334 million increase since the last rate case.
However, as part of the resolution, NW Natural was required to forgo recovery of $13.7 million of rate base related to line extension allowances. This resulted in a non-cash, pre-tax charge of $13.7 million, approximately $10.1 million after-tax, recorded in the fourth quarter of 2024.
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