NW Natural to Acquire PacifiCorp Gas Assets

TL;DR

NW Natural buying PacifiCorp gas assets, deal expected H1 2026.

AI Summary

Northwest Natural Holding Company announced on October 24, 2025, that it has entered into a definitive agreement to acquire vital natural gas distribution assets from PacifiCorp. The transaction is expected to close in the first half of 2026, subject to regulatory approvals. This acquisition is a significant step in expanding Northwest Natural's service territory and customer base.

Why It Matters

This acquisition will expand Northwest Natural's regulated natural gas distribution business, potentially increasing its rate base and future earnings.

Risk Assessment

Risk Level: medium — The acquisition is subject to regulatory approvals, which introduces uncertainty regarding its completion and terms.

Key Players & Entities

• Northwest Natural Holding Company (company) — Registrant
• PacifiCorp (company) — Seller of assets
• Northwest Natural Gas Company (company) — Subsidiary/related entity

FAQ

Key Financial Figures

• $59.4 million — f Oregon (OPUC). The filing requested a $59.4 million annual revenue requirement increase, wh
• $10 million — ue requirement increase, which included $10 million related to an updated depreciation stud
• $21.3 million — a total revenue requirement increase of $21.3 million over revenues from existing rates, whic
• $4.8 million — ing rates, which includes approximately $4.8 million related to an updated depreciation stud
• $20.7 million — ed in a revenue requirement increase of $20.7 million over existing rates. Average rate base
• $2.27 billion — ents for completed capital projects was $2.27 billion or an increase of $180.1 million since
• $180.1 million — cts was $2.27 billion or an increase of $180.1 million since the last rate case. NW Natural

Filing Documents

• nwn-20251024.htm (8-K) — 47KB
• nwn-20251024_g1.jpg (GRAPHIC) — 56KB
• nwn-20251024_g2.jpg (GRAPHIC) — 38KB
• 0001733998-25-000172.txt ( ) — 446KB
• nwn-20251024.xsd (EX-101.SCH) — 3KB
• nwn-20251024_def.xml (EX-101.DEF) — 16KB
• nwn-20251024_lab.xml (EX-101.LAB) — 28KB
• nwn-20251024_pre.xml (EX-101.PRE) — 16KB
• nwn-20251024_htm.xml (XML) — 5KB

01 Other Events

Item 8.01 Other Events As previously disclosed, on December 30, 2024, Northwest Natural Gas Company (NW Natural), a wholly owned subsidiary of Northwest Natural Holding Company (NW Holdings), filed a request for a general rate case (Rate Case) with the Public Utility Commission of Oregon (OPUC). The filing requested a $59.4 million annual revenue requirement increase, which included $10 million related to an updated depreciation study. As further disclosed, on June 23, 2025 NW Natural, the OPUC staff, the Oregon Citizens' Utility Board (CUB) and the Alliance of Western Energy Consumers (AWEC), which comprise all but one of the parties to the rate case, filed a stipulation (First Stipulation) with the OPUC which addressed certain issues in the Rate Case. The other party to the Rate Case, specifically, the coalition of Climate Solutions, Coalition of Communities of Color, Verde, Sierra Club, and Oregon Environmental Council (collectively, Coalition), authorized the parties to the Stipulation to represent that the Coalition did not oppose the Stipulation. The First Stipulation provided for a total revenue requirement increase of $21.3 million over revenues from existing rates, which includes approximately $4.8 million related to an updated depreciation study, subject to completion of capital projects identified as being placed in service prior to the rate effective date. The revenue requirement is based on the following assumptions: Capital structure of 50% common equity and 50% long-term debt; Cost of long-term debt of 4.74% Return on equity of 9.5%, and Overall cost of capital of 7.12% Subsequent to the First Stipulation, NW Natural and parties entered into two additional stipulations addressing certain non-revenue requirement items (collectively with the First Stipulation, the Stipulations). On October 24, 2025, the OPUC issued a final order in the Rate Case. The order approved the Stipulations and resolved the regulatory litigation process by rejecti

Forward-Looking Statements

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, financial results, financial position, revenue requirement, system and infrastructure reinforcement, expansion or reliability, gas storage investments, costs, timing or benefits, customer growth, customer rates and the timing and magnitude of any rate changes, revenues and earnings, earnings guidance, performance, timing, outcome, 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 fact