NW Natural raises renewable natural gas goals to meet Oregon climate rules
NW Natural said it is boosting RNG purchases for Oregon's CPP, while customers are seeing a $0.065-per-therm climate charge on December bills.
NW Natural expanded energy efficiency programs and increased renewable natural gas purchases after Oregon's first Climate Protection Program compliance period began January 1, 2025.
Senate Bill 98 sets voluntary RNG targets of 5% by 2020, 10% by 2025, 15% by 2030, 20% by 2035 and 30% by 2050 for the state pipeline system. It also allows a utility to recover up to 5% of its revenue requirement for incremental RNG infrastructure costs. In 2020, David H. Anderson, NW Natural's president and chief executive, said the company saw the law as a way to buy renewable product for customers and create a revenue source for local communities by turning waste into energy. At the time, NW Natural said the RNG market included about 115 projects nationwide and was expected to grow 50% over the next year.
The company has also been building its near-term planning around Oregon's climate rules. In a Sept. 2, 2025 presentation to the Oregon Public Utility Commission, NW Natural said the commission expected it to pursue RNG and Community Climate Investments in the most economical way possible to minimize compliance costs and risks. Its preferred portfolio kept RNG purchases under SB 98's 5% cost cap in the near term. It commissioned ICF to examine the cost of electrifying space heat in the Pacific Northwest to meet CPP and HB 2021 goals, and formed an advisory group of regional energy and electric system experts to review assumptions and reliability risk.
The first climate-program cost appeared on December bills, reflecting November gas use, and the Oregon Climate Program Cost line item was set at $0.065 per therm of usage. Compliance costs are designed to rise over time, and NW Natural has raised concerns about CPP viability, carbon-reduction capability and costs.
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