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Natural gas company pays less, wants its customers to save, too Local natural gas customers will see smaller bills starting in December if state utility officials approve a request from WP Natural Gas to lower its rates. Scott Morris, general manager for WP Natural Gas in Medford, said the rate reduction reflects decreases in the price the company pays suppliers for gas. If the Oregon Public Utility Commission approves the company's request, a typical residential customer would see a monthly decrease of about $1.39. The new rates would take effect Dec. 1. Morris said this represents the third price decrease for WP Natural Gas customers in four years. Customers saw an increase last year, but overall, gas prices are about 10 percent lower now than they were four years ago. Morris said wholesale gas prices fluctuate constantly, and the changes are not something the company can control. WP Natural Gas buys gas from several suppliers at various prices during the year. As the price the company pays rises and falls, any difference between the company's cost and the amount customers pay accumulates in a special account and charged to or refunded to customers once a year in a filing with the PUC such as this one. WP Natural Gas serves about 73,000 customers in Medford, Ashland, Grants Pass, Roseburg, Klamath Falls and La Grande, and about 18,000 customers in South Lake Tahoe, Calif. The company is a subsidiary of Washington Water Power, an energy services company with annual revenues of more than $3 billion. Washington Water Power also operates Avista Capital, which owns the company's nonregulated businesses. On Jan. 1, the parent company's name will change to Avista Corp.; Washington Water Power and WP Natural Gas will become divisions of Avista. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA