Washington AG urges UTC to reject Northwest Natural Gas Company’s steep rate hikes
Apr 8, 2026, 12:58 PM | Updated: 2:42 pm
A burner on a stove emits blue flames from natural gas. (Photo illustration: Tim Boyle, Getty Images)
(Photo illustration: Tim Boyle, Getty Images)
The Washington State Attorney General’s (AG) Office is challenging Northwest Natural Gas Company’s proposed rate hikes.
Washington State AG Nick Brown urged the Utilities and Transportation Commission (UTC) to reject a settlement agreement that would allow steep rate increases, according to a news release from the AG’s Office.
Northwest Natural Gas Company is a private utility authorized by the state to operate as the primary natural gas provider in southwest Washington. It serves 90,000 households in the Vancouver area.
Northwest Natural Gas Company seeks $36.5 million in rate increases
The company wants to increase its utility rates by $36.5 million, according to the AG’s Office. If approved, customers’ rates would increase by 19% in August 2026 to approximately $12.96 per month for the average household. Rates would then go up 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, roughly $267 per year.
Brown argued the increases are not “fair, just, or reasonable.”
“The costs of living are out of control, and the last thing Washingtonians need are unjustified hikes to their utility bills,” Brown stated in the release. “Utility companies provide critical services, but the push for profits should not be forced onto the backs of captive consumers.”
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Why the AG’s Office is pushing back
The AG’s Office noted Northwest Natural Gas Company has increased its payouts to shareholders every quarter for the last 70 years. In 2025, it paid $81 million to shareholders. That means, on average, 12% of customers’ utility bills go to paying investors rather than actually paying for utility service.
Brown also pointed out that the company’s CEO was paid more than $4 million in 2024. The proposed rate increases would funnel an additional $4 million toward executive pay, trade group memberships, and investor relations.
The rate hikes would also guarantee Northwest Natural Gas Company a 9.5% return on equity over the next three years, which the AG’s Office argued is “unjustifiably high” and was calculated using an outdated method.
The UTC will host public comment on the case on April 30. The public can participate through Zoom or phone. More information can be found on the UTC’s website.
MyNorthwest has reached out to Northwest Natural Gas Company for comment.
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