Profile: Northwest Natural Gas Co (NWN)
16 Mar 2018
Northwest Natural Gas Company (NW Natural), incorporated on January 10, 1910, is engaged in the distribution of natural gas. The Company's segments include Local Gas Distribution, Gas Storage and other. The Company maintains operations in Oregon, Washington and California and conducts businesses through NW Natural and its subsidiaries. The local gas distribution business, referred to as the utility segment, serves residential, commercial, and industrial customers in Oregon and southwest Washington, and the gas storage business, referred to as the gas storage segment, provides storage services for utilities, gas marketers, electric generators and industrial users from storage facilities located in Oregon and California. The Company's other segment is referred to as non-utility.
Local Gas Distribution
As of December 31, 2016, the Company's utility is engaged in the regulated distribution of natural gas in Oregon and southwest Washington to over 725,000 customers. As of December 31, 2016, it provided natural gas service to over 100 cities in 18 counties with a population of 3.5 million in its service territory. Its utility segment is involved in building and maintaining pipeline distribution system, purchasing gas supplies from producers and marketers, contracting for the transportation of gas over pipelines from supply basins to its service territory, and reselling the gas to customers subject to rates, terms and conditions approved by the Public Utility Commission of Oregon (OPUC) or by the Washington Utilities and Transportation Commission (WUTC).
Gas distribution also includes taking customer owned gas and transporting it from interstate pipeline connections, or city gates, to the customers' end use facilities for a fee, also approved by the OPUC or WUTC. The Company serves industrial sectors, such as pulp, paper, and other forest products; the manufacture of electronic, electrochemical and electrometallurgical products; the processing of farm and food products; the production of various mineral products; metal fabrication and casting; the production of machine tools, machinery and textiles; the manufacture of asphalt, concrete and rubber; printing and publishing; nurseries; government and educational institutions, and electric generation.
The Company's gas storage segment includes natural gas storage services provided to customers primarily from two underground natural gas storage facilities, its Gill Ranch gas storage facility, and the non-utility portion of its Mist gas storage facility. It also uses an independent energy marketing company to provide asset management services for utility and non-utility capacity. Earnings from non-utility assets at its Mist facility in Oregon are primarily related to firm storage capacity revenues. Earnings for the Mist facility also includes revenue, net of amounts shared with utility customers, from management of utility assets at Mist and upstream capacity when not needed to serve utility customers. Gill Ranch has a joint project agreement with Pacific Gas and Electric Company (PG&E) to own and operate the Gill Ranch underground natural gas storage facility near Fresno, California.
The Company has non-utility investments and other business activities, which are aggregated and reported as other. The segment consists of an equity method investment in Trail West Holdings, LLC (TWH), which was formed to build and operate an interstate gas transmission pipeline in Oregon (TWP), and other pipeline assets in NNG Financial Corporation (NNG Financial). NNG Financial holds certain non-utility financial investments, but its assets consist of a subsidiary, which holds an interest in an approximately 18-mile interstate natural gas pipeline.
Northwest Natural Gas Co
220 NW 2nd Ave
PORTLAND OR 97209-3943