Oregon Regulators Approve a 10.7% Net Residential Rate Increase Effective Oct. 31, 2026, Alongside New Heat Pump Rebates
Key Takeaways
- Net residential rates increased by 10.7% (roughly $7.38 per month) starting Oct. 31, 2026, for a typical Oregon household using 57 therms of gas.
- Lower wholesale gas prices in the annual Purchased Gas Adjustment (PGA) helped offset the $12 million base rate settlement.
- The OPUC approved a new $1,500 heat pump incentive and a three-year phase-out of natural gas line extension subsidies.
A new Cascade Natural Gas rate increase in Oregon took effect on Oct. 31, 2026, changing how households across Central and Eastern Oregon budget for winter heating. In its final decision, the Public Utility Commission of Oregon (OPUC) combined the settled General Rate Case under OPUC Docket UG 525 with the annual Cascade Natural Gas Purchased Gas Adjustment 2026 (PGA). While the settlement approved a base revenue increase for system safety and reliability upgrades, falling wholesale fuel costs softened the final blow to your wallet. We broke down how the October 2026 rate hike impacts your monthly bill, what the updated Schedule 101 tariff rates look like, and how you can claim new electrification rebates to cut your winter heating costs.
Final OPUC Rate Decision: General Rate Case vs. Purchased Gas Adjustment
To understand your updated heating bill, it helps to look at the two-part calculation behind the OPUC’s decision. First, the general rate case — Cascade’s first since 2020 — approved a $12 million base revenue requirement increase to cover accumulated capital investments and pipeline safety upgrades. That settlement lowered the utility’s initial 17.4% rate hike request down to an 11.58% overall increase (12.3% for residential base rates).
Second, the OPUC evaluated the annual PGA filing, which passes actual wholesale fuel costs directly to customers without utility markups. Because wholesale natural gas market prices dropped and regional gas consumption stayed low during the unusually warm 2025–2026 winter, per-therm gas supply costs decreased. Combining the 12.3% base rate hike with the downward PGA adjustment lowered the final net residential increase to 10.7%. Furthermore, the OPUC noted that this year’s PGA approval remains subject to additional regulatory review and potential customer refunds if supply cost audits favor ratepayers.
Consumer advocates, including the Oregon Citizens’ Utility Board, played a major role in trimming costly items from the initial Docket UG 525 proposal. The final agreement stripped expensive renewable natural gas purchasing costs from base rates, capped shareholder profit margins, and initiated a phase-out of customer-funded subsidies for new building gas hookups. Even in the wake of broader Oregon natural gas rate hikes in 2026, the company still maintains the lowest residential gas billing rates among all regulated natural gas utilities in Oregon.
How the New Gas Rates Impact Your Monthly Bill
With the new rates in effect as of Oct. 31, 2026, your monthly bill change depends on seasonal weather and natural gas measurements like how many therms of gas your household uses. For a standard residential customer using the OPUC benchmark of 57 therms per month, monthly bills rose from $68.97 to $76.35 — a net increase of $7.38 per month. During freezing winter months when your furnace runs constantly, high-usage bills will climb by roughly $12 to $14 per month.
| Billing Metric | Previous Rate | New Rate (Effective Oct. 31, 2026) | Net Change |
| OPUC Benchmark Residential Bill (57 Therms/mo) | ~$68.97 / month | ~$76.35 / month | +$7.38 / month (+10.7%) |
| Base Rate Revenue Requirement (Docket UG 525) | 2020 Base Rate | +$12 Million Settlement | +11.58% overall (+12.3% residential base) |
| Peak Winter Monthly Bill (Est. High Usage) | ~$119.00 / month | ~$131.00–$133.00 / month | +$12.00–$14.00 / month |
These updated Central and Eastern Oregon gas rates affect approximately 86,000 residential and commercial customers across the region, including communities in Bend, Redmond, Prineville, Baker City, Ontario, Hermiston, Pendleton, and throughout Malheur County (Cascade Natural Gas Corporation).
Breakdown of Schedule 101 Residential Tariff Rates (Effective Oct. 31, 2026)
When understanding your natural gas bill, you will see that your total gas charge is built from fixed monthly fees and several per-therm rate schedules. Under Cascade Natural Gas Schedule 101 rates (summarized on tariff sheet Schedule 99), residential customers pay $8.58 in fixed monthly charges before using any gas, followed by a combined volumetric rate of $1.07355 per therm.
| Tariff Component (Schedule 99 / Schedule 101) | Rate / Charge | Billing Unit |
| Basic Service Charge | $7.00 | Per month |
| Energy Discount Program Cost Recovery (Schedule 37) | $1.58 | Per month |
| Delivery Charge | $0.50164 | Per therm |
| Cost of Gas / WACOG (Schedule 177) | $0.52453 | Per therm |
| Conservation Alliance Plan (Schedule 193) | $0.05021 | Per therm |
| Temporary Gas Cost Rate (Schedule 191) | -$0.00460 (credit) | Per therm |
| Environmental Remediation & Intervenor Funding (Schedules 192 & 197) | $0.00177 | Per therm |
| Total Volumetric Rate | $1.07355 | Per therm |
Notably, both the Schedule 220 Climate Protection Program charge and Schedule 225 Renewable Natural Gas (RNG) Recovery charge are currently set at $0.00000 per therm, keeping extra compliance fees off your winter bills.
New Policy Changes: $1,500 Heat Pump Rebates and Line Extension Phase-Outs
Beyond adjusting per-therm prices, the Oregon Public Utility Commission Cascade Natural Gas order introduced major environmental and electrification wins for ratepayers. Most notably, Cascade Natural Gas is launching a new heat pump pilot program that offers a $1,500 incentive to eligible residential customers who install qualifying high-efficiency electric heat pump equipment. It is rare to see a natural gas utility help fund electric heating upgrades, making the Cascade Natural Gas heat pump rebate an excellent eco-conscious alternative for homeowners looking to upgrade aging furnaces and cut their household carbon footprint.
The settlement also approved a Cascade Natural Gas line extension allowance phase-out under Rule 9. Over a three-year period, the utility will eliminate the subsidies that previously covered the cost of connecting newly constructed homes and commercial buildings to the gas pipeline network. Ending these allowances ensures that existing ratepayers no longer have to subsidize pipeline expansion for real estate developers, protecting your monthly bill from unnecessary infrastructure debt.
🌱 Eco Edge: Combining the new $1,500 Cascade Natural Gas heat pump rebate with state incentives from Energy Trust of Oregon can save you thousands of dollars upfront when switching to high-efficiency electric heating and cooling.
Historical Context: Cascade Natural Gas Rate Changes (2022–2026)
While any rate increase is frustrating, looking at how Cascade’s Oregon rates have fluctuated over the past four years puts the 2026 adjustment into perspective. Most recent bill swings were driven by volatile wholesale fuel markets rather than utility profit margins:
- Nov. 1, 2022: The OPUC approved a steep 25.1% residential rate increase (alongside 30.1% commercial and 33.8% industrial hikes) driven by surging wholesale natural gas prices across the Pacific Northwest.
- Nov. 1, 2024: Billing rates dropped by 13.2% for residential customers (16.9% commercial and 19.6% industrial) as wholesale natural gas supply prices fell back toward normal levels.
- Oct. 31, 2026: Rates increased by 10.7% for residential customers, blending the utility’s first base operational rate hike since 2020 with a downward PGA wholesale gas adjustment.
You may also notice the timing of this latest adjustment. The Oct. 31, 2026 effective date put the new rates in place just one day before Oregon’s annual winter moratorium on residential utility rate increases began on Nov. 1.
Actionable Ways to Lower Your Natural Gas Heating Costs
You don’t have to absorb higher winter heating bills without a plan. Taking a few proactive steps right now can help you save on your gas bill and keep your home comfortable while keeping your monthly utility costs predictable.
Enroll in the Energy Discount Program (Schedule 36) and Assistance Grants
If higher heating bills strain your household budget, several Oregon winter heating bill assistance options can provide immediate relief:
- Cascade Natural Gas Energy Discount Program (Schedule 36): Provides direct, ongoing monthly bill discounts ranging from 15% to 95% for income-qualifying Oregon households based on guidelines linked to the State Median Income.
- Oregon Low-Income Bill Assistance Program (Schedule 32): Offers supplemental grants to eligible Cascade customers who need help catching up on past-due balances.
- Low-Income Home Energy Assistance Program (LIHEAP): Federal grants administered by local Oregon community action agencies to help cover winter heating costs.
- Oregon Energy Assistance Program (OEAP): Utility-supported emergency funds designed to prevent winter heating service disconnections for qualifying families.
Set Up Equal Payment Plan Budget Billing
Enrolling in Cascade’s Equal Payment Plan averages your expected annual gas usage across 12 predictable monthly payments. Budget billing won’t lower the rate you pay per therm, but it eliminates sharp winter bill spikes by spreading peak seasonal heating costs evenly across the entire year.
Make Eco-Conscious Home Upgrades
Small energy-saving options around your house can cut your therm usage significantly and offset the 10.7% rate hike:
- Install a Smart Thermostat: Automatically lower indoor temperatures overnight or while you are away to reduce gas furnace runtime. See our choices for Best Smart Thermostats.
- Seal Air Leaks: Apply fresh weatherstripping around exterior doors and caulk around drafty windows to stop warm air from escaping.
- Claim Rebates and Weatherization Cash: Stack the new $1,500 heat pump pilot incentive with cash rebates from Energy Trust of Oregon for upgrading heating equipment, adding attic insulation, or sealing leaky ductwork.
Navigating Your Winter Heating Budget Under the 2026 Rate Structure
While the Oct. 31, 2026 rate adjustment adds about $7.38 to a typical monthly gas bill, Central and Eastern Oregon residents have plenty of tools to neutralize the increase. If you are planning a major HVAC upgrade, claiming the new $1,500 heat pump rebate alongside Energy Trust of Oregon incentives is an environmentally mindful choice that reduces your reliance on natural gas permanently. For immediate winter relief, enrolling in the Schedule 36 Energy Discount Program, setting up Equal Payment Plan billing, and sealing drafty windows will keep your home warm and your budget on track all season long.
Frequently Asked Questions About Cascade Natural Gas Rate Changes
When did the 2026 Cascade Natural Gas rate increase take effect in Oregon?
The new Cascade Natural Gas rates took effect on Oct. 31, 2026, following final approval from the Oregon Public Utility Commission (OPUC). This date fell one day before Oregon’s annual winter moratorium on utility rate hikes began on Nov. 1.
How much will my Cascade Natural Gas bill go up in 2026?
For a typical residential household using the OPUC benchmark of 57 therms per month, bills increased by 10.7%, or about $7.38 per month (rising from $68.97 to $76.35). During peak winter heating months when gas usage is much higher, bills will increase by roughly $12 to $14 per month.
Why did the final rate increase drop from the proposed 17.4% to 10.7%?
The reduction happened in two steps. First, consumer advocates negotiated Cascade’s initial 17.4% general rate case request down to a 12.3% residential base rate increase under Docket UG 525. Second, the OPUC combined that settlement with the annual Purchased Gas Adjustment (PGA), which lowered per-therm fuel supply prices due to falling wholesale gas costs after a warm 2025–2026 winter, resulting in a 10.7% net increase.
How do I qualify for the new $1,500 Cascade Natural Gas heat pump rebate?
Residential Cascade Natural Gas customers in Oregon can qualify for the $1,500 incentive through the utility’s newly approved pilot program when installing qualifying high-efficiency electric heat pump equipment. Contact Cascade Natural Gas customer service or check their Oregon energy efficiency program portal before installation to verify equipment eligibility and reserve funds.
What is the current per-therm rate for Cascade Natural Gas in Oregon?
Effective Oct. 31, 2026, the total volumetric rate for Cascade Natural Gas residential customers under Schedule 101 is $1.07355 per therm. In addition to per-therm usage charges, residential accounts pay $8.58 in fixed monthly charges ($7.00 Basic Service Charge plus $1.58 for Energy Discount Program Cost Recovery).
About the Author
Claudio is a sustainability-focused writer with a background in Anthropology and Psychology from NC State University. He has spent over 15 years working in writing, interpretation, and translation, driven by a deep interest in how human culture shapes the environment. Today, he shares his curiosity with readers by writing about sustainable living solutions and the connection between everyday choices and environmental impact.