Northwest Natural (NWN) details 3-year Washington gas rate increases

Rhea-AI Filing Summary

Northwest Natural Gas Company, a subsidiary of Northwest Natural Holding Company, describes a proposed three-year rate plan settlement for its Washington customers. Washington represents about 12% of customers and 8% of revenues, with the rest in Oregon.

The settlement filed with the Washington Utilities and Transportation Commission provides for annual revenue requirement increases of $20.1 million in Year 1 beginning August 1, 2026, $7.7 million in Year 2, and $8.7 million in Year 3. The plan assumes a capital structure of 50% long-term debt and 50% common equity, a 9.5% return on equity, and an overall rate of return rising from 7.15% to 7.22% as the average rate base grows from $328.0 million to $410.7 million.

The settlement covers all but one issue in the case, leaving line extension allowance policy to ongoing regulatory litigation. It remains subject to WUTC review and approval, and the commission may accept the settlement, reject it, or set different terms before new rates take effect.

Insights

Utility regulation analyst

Multi-year Washington rate plan settlement sets clearer revenue path.

The filing outlines a proposed three-year revenue plan for NW Natural in Washington, with increases of $20.1 million, $7.7 million and $8.7 million. These amounts are tied to an expanding average rate base and a targeted 9.5% return on equity.

The assumed 50/50 debt-equity mix and overall allowed returns of 7.15% to 7.22% shape earnings potential from Washington, which currently contributes about 8% of revenues. Because Washington is a minority of the business, effects remain localized rather than company-wide.

The settlement is still subject to WUTC approval, and line extension policy remains in separate litigation. Outcomes in the eventual WUTC order and related proceedings will determine final revenue, return and timing for Washington operations within the 2026–2028 rate years.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

March 23, 2026

NORTHWEST NATURAL HOLDING COMPANY

NORTHWEST NATURAL GAS COMPANY

(Exact name of registrant as specified in its charter)

(Exact name of registrant as specified in its charter)

Commission file number

1-38681

Commission file number

1-15973

Oregon

82-4710680

Oregon

93-0256722

(State or other jurisdiction of incorporation)

(IRS Employer Identification No.)

(State or other jurisdiction of incorporation)

(IRS Employer Identification No.)

250 SW Taylor Street

250 SW Taylor Street

Portland

,

Oregon

97204

Portland

,

Oregon

97204

(Address of principal executive offices)

(Zip Code)

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (503) 226-4211 Registrant's telephone number, including area code: (503) 226-4211

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Registrant			Title of each class			Trading Symbol			Name of each exchange on which registered
Northwest Natural Holding Company			Common Stock			NWN			New York Stock Exchange
Northwest Natural Gas Company			None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Northwest Natural Holding Company

Emerging growth company

☐

Northwest Natural Gas Company

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Item 8.01 Other Events

As previously disclosed, on August 29, 2025, Northwest Natural Gas Company (NW Natural), a wholly owned subsidiary of Northwest Natural Holding Company (NW Holdings), filed a request for a general rate increase (Rate Case) with the Washington Utilities and Transportation Commission (WUTC) under Washington's multi-year rate plan statute. Approximately 99,000 or 12% of NW Natural’s customers are in, and approximately 8% of NW Natural’s revenues are derived from, Washington. The remainder of NW Natural's customers and revenues are in Oregon. NW Natural completed its previous Washington general rate case in 2021. NW Natural’s Rate Case filing in 2025 included requested increases in annual revenue requirement over three years, consisting of a $25.6 million revenue increase in the first year beginning August 1, 2026 (Year 1), an $8.6 million revenue increase in the second year beginning August 1, 2027 (Year 2) and an $8.3 million revenue increase in the third year beginning August 1, 2028 (Year 3).

On March 23, 2026, NW Natural, Staff of the WUTC, The Energy Project and the Alliance of Western Energy Consumers, which comprise all but one of the parties to the Rate Case, filed a settlement with the WUTC that addressed all issues but one in the Rate Case (Stipulation). The Stipulation provides for a $20.1 million revenue increase in Year 1, a $7.7 million revenue increase in Year 2 and an $8.7 million revenue increase in Year 3. The revenue requirement for Year 1 includes the addition to rate base expected to be placed in-service by the start of Rate Year 1. Rate Years 2 and 3 include additions to rate base during the rate years. Plant placed into service after March 31, 2025 is subject to review, adjustment and refund according to actual costs incurred. The incremental revenue requirement for each year is based upon the following assumptions:

Year 1

Year 2

Year 3

Revenue Requirement Increase

$20.1 million

$7.7 million

$8.7 million2

Capital Structure

•50.0% long-term debt •50.0% common equity

•50.0% long-term debt •50.0% common equity

•50.0% long-term debt •50.0% common equity

Return on Equity

9.5%

9.5%

9.5%

Cost of Long-Term Debt

4.806%

4.863%

4.936%

Overall Rate of Return

7.15%

7.18%

7.22%

Average Rate Base

$328.0 million1

$369.6 million

$410.7 million

1 Represents an increase of $80.7 million since the last rate case.

2 Includes approximately $3.5 million related to an updated depreciation study.

The Stipulation does not address NW Natural's line extension allowance policy, which is subject to the ongoing regulatory litigation process. The Stipulation is subject to the review and approval of the WUTC. For new rates to be effective, the WUTC must issue an order, which may approve or deny the terms of the Stipulation or be issued under the WUTC's own terms. NW Natural expects new rates to take effect on August 1, 2026.

Forward-Looking Statements

This report, and other presentations made by NW Holdings or NW Natural from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," “continues,” “could,” "intends," "plans," "seeks," "believes," "estimates," "expects," “will” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, expectations, estimates, timing, goals, strategies, commitments, expenses, future events, investments, targeted capital structure, cost of capital, return on equity, rate base, effects of inflation or interest rates, depreciation rates, financial results, financial position, revenue requirement, system and infrastructure reinforcement, expansion or reliability, costs, timing or benefits, revenues and earnings, performance, timing, outcome, potential challenges to, or effects of rate cases or other regulatory proceedings, mechanisms, approvals or recoveries, regulatory prudence reviews, anticipated regulatory actions or filings, and other statements that are other than statements of historical facts.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying

on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A "Risk Factors", and Part II, Item 7 and Item 7A "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosure about Market Risk" in the most recent Annual Report on Form 10-K and in Part I, Items 2 and 3 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk", and Part II, Item 1A, "Risk Factors", in the quarterly reports filed thereafter of NW Holdings or NW Natural, as applicable, which, among others, outline legal, regulatory and legislative risks, macroeconomic and geopolitical risks, growth and strategic risks, operational risks, and environmental risks.

All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NW Holdings or NW Natural, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Holdings and NW Natural undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company and its subsidiaries.

						NORTHWEST NATURAL HOLDING COMPANY
						(Registrant)
Dated:			March 24, 2026			/s/ Megan H. Berge
						Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary
						NORTHWEST NATURAL GAS COMPANY
						(Registrant)
Dated:			March 24, 2026			/s/ Megan H. Berge
						Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary

FAQ

What rate increases did Northwest Natural (NWN) agree to in Washington?

Northwest Natural’s proposed settlement outlines annual revenue requirement increases of $20.1 million in Year 1, $7.7 million in Year 2, and $8.7 million in Year 3, all tied to its Washington natural gas operations under a multi-year rate plan.

When are Northwest Natural’s new Washington gas rates expected to start?

The company expects new Washington rates to begin on August 1, 2026. This effective date depends on the Washington Utilities and Transportation Commission issuing an order that either approves the settlement terms or sets its own terms for the multi-year rate plan.

How important is Washington to Northwest Natural’s overall business?

Washington accounts for approximately 99,000 customers, about 12% of Northwest Natural’s customers and around 8% of its revenues. The remaining customers and revenues are located in Oregon, so the Washington rate case affects only a minority share of total operations.

What returns does Northwest Natural target in the Washington rate settlement?

The settlement assumes a 9.5% return on equity with a capital structure of 50% long-term debt and 50% common equity. This produces an overall allowed rate of return starting at 7.15% and rising modestly to 7.22% over the three rate years.

How will Northwest Natural’s Washington rate base change under the plan?

The average rate base for Washington is projected at $328.0 million in Year 1, $369.6 million in Year 2, and $410.7 million in Year 3. These figures reflect new plant additions placed in service and reviewed for prudence and actual costs.

Does the Washington settlement cover Northwest Natural’s line extension policy?

The settlement specifically does not resolve Northwest Natural’s line extension allowance policy. That issue remains in an ongoing regulatory litigation process, separate from the revenue requirement and rate base matters addressed in the current multi-party stipulation.

Is the Northwest Natural Washington rate settlement final?

No, the settlement is still subject to review and approval by the Washington Utilities and Transportation Commission. The commission may approve the stipulation, deny it, or issue an order with its own terms before any new multi-year rates become effective.

Filing Exhibits & Attachments

4 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.8 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 16.0 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 28.2 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 16.3 KB