The company said that it is requesting a 14% rate increase in Oregon and a 20% rate increase in Washington for residential customers, which is significantly below its original projections.

The final rate change filing will be reviewed by the Public Utility Commission of Oregon and the Washington Utilities and Transportation Commission. Any changes to rates will take effect from November 1, 2008.

Randy Friedman, director of gas supply at NW Natural, said: Natural gas prices reached all-time highs in July when we made our initial rate increase projection, but recently we’ve seen prices decrease. Combine an economic slowdown with greater gas production and you have all the ingredients for a decline in prices.