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Northwest Natural warns council that draft Oregon carbon rules could raise customer costs
Summary
Northwest Natural representatives briefed the Wood Village City Council on a state carbon regulation in rulemaking, saying modeled compliance costs could total hundreds of millions and would increase customer bills unless mitigated. The presentation focused on program design, RNG projects and affordability measures.
Northwest Natural representatives updated the council on draft Oregon rulemaking they said would regulate fuel suppliers and could raise costs for local customers.
Mary Morlands, director of environmental policy and corporate responsibility at Northwest Natural, told the council the draft climate protection program targets aggressive reductions and applies to natural gas, transportation fuels and propane. “It has aggressive reduction goals, so a 50% reduction in emissions by 2035,” Morlands said, describing the program’s long-term targets.
Morlands gave the council modeled cost estimates for compliance under the current draft rules. “We estimate in the first two years of implementation that customers Northwest Natural customers would see cost impacts of, you know, more than 180 to 200,000,000,” she said, adding that by year four modeled community climate investment (CCI) costs could reach roughly $500,000,000 and translate to “about 17% rate increase for residential customers and a 21% increase for commercial customers” attributable to those CCIs in the draft design.
Northwest Natural representatives emphasized the company’s broader decarbonization work — pilots on methane pyrolysis, carbon capture and renewable natural gas procurement — and framed regulatory compliance as a challenge that requires verified emissions reductions and affordability protections. Amy Rathfelder, who introduced the presentation, framed the company’s priorities as “equity” and “affordability,” and said the utility seeks price controls and longer time horizons in rulemaking to avoid ‘cost shock’ for customers.
Council members pressed on program details, asking if thermal-energy network designs or dual-fuel/backup systems would be covered or exempt under the draft rules. Morlands and Rathfelder said the program’s design choices matter for who bears costs, and that Northwest Natural cannot receive CCIs (community climate investments) under the draft. The presenters offered to follow up with staff on low‑income assistance programs and partnership opportunities for resident outreach.
The company’s presentation in Wood Village was framed as an informational update on both the regulatory landscape and the firm’s pilots; no council action was taken following the briefing. The rulemaking public-comment period was expected to close in September with an Environmental Quality Commission vote in November, according to the presenters.
