NW Natural
| Company type | Public |
|---|---|
| Industry | Utilities (Natural gas, Water) |
| Founded | 1859 |
| Founder | H.C. Leonard, Henry D. Green |
| Headquarters | Portland , United States |
Area served | Western Oregon, Southwest Washington |
| Products | Natural gas distribution, Water utility services |
| Website | www |
NW Natural, previously known as Northwest Natural Gas Company, is a publicly held utility firm based in Portland, Oregon. It provides services to residential, commercial, and industrial clients across Western Oregon and Southwest Washington. Although its primary focus is on distributing natural gas, the company also manages water utility operations. Established in 1859, NW Natural currently serves close to 800,000 customers and generates annual revenues surpassing $1 billion.
History
The Pacific Northwest’s inaugural gas company, Portland Gas Light Company, was founded in 1859 by territorial charter. Its founders, H.C. Leonard and Henry D. Green, launched operations with coal gasification plants supplying downtown Portland. After incorporating in 1862, the firm expanded through acquisitions and infrastructure enhancements, including linking the gas systems of East and West Portland.
Ownership transferred multiple times: the company was sold to financiers C.F. Adams and Abbot Low Mills in 1892, then acquired by American Power & Light Company in 1913, which rebranded it as Portland Gas and Coke Company. Under the ownership of EBASCO and General Electric, the company grew further by acquiring entities such as St. Johns Gas Company and Clackamas County Gas Company.
During the 1950s, the company shifted from producing coal gas to distributing natural gas, ceasing operations at its last gas plant by 1957. It adopted the name Northwest Natural Gas Company in 1958 and expanded its service territory over subsequent decades, reaching more than 300,000 residential accounts by 1989. The brand was simplified to NW Natural in 1997.
In 2000, NW Natural transitioned its stock listing from NASDAQ to the New York Stock Exchange under the ticker NYSE: NWN. The company pursued a nearly $3 billion acquisition of Portland General Electric (PGE) from Enron in 2001 but withdrew from the transaction in 2002 following Enron’s bankruptcy. By 2005, NW Natural had been honored for five consecutive years on Business Ethics magazine’s list of 100 Best Corporate Citizens.
The year 2003 saw NW Natural launch the NW Natural/Dick Reiten Leadership Fund through the Oregon Community Foundation and expand its natural gas infrastructure into Coos Bay.
In 2007, NW Natural announced plans for constructing a new natural gas pipeline while also implementing its first rate reduction after six years.
Starting in 2018, NW Natural broadened its business scope by acquiring water utility companies, diversifying beyond its core natural gas distribution services.
Services
As Oregon’s largest natural gas provider, NW Natural serves customers across regions including the Oregon Coast, Willamette Valley, Columbia River Gorge, and the Portland metropolitan area. The company operates underground natural gas storage facilities near Mist, Oregon and Fresno, California; these depleted wells enable it to purchase gas at lower costs for storage ahead of peak winter demand periods.
Environmental issues
In 2005, NW Natural initiated cleanup efforts to remove tar contamination from a former plant site that had polluted the Willamette River. The company faced fines due to delays in conducting river testing. It set a goal of delivering 5% renewable natural gas (RNG) by 2024 but has so far achieved under 1%, largely through credits acquired from out-of-state RNG sources. Promoting RNG as part of its carbon reduction strategy under the "Less We Can" initiative, NW Natural has simultaneously opposed electrification policies aimed at decreasing gas consumption.
In October 2024, Multnomah County officials included NW Natural among defendants in a $50 billion lawsuit alongside major fossil fuel corporations. The suit alleges misleading conduct regarding climate risks and connects fossil fuel sales to at least 69 fatalities during a heat wave in 2021.
Financial results
The financial data presented below is expressed in millions of US dollars:
| Year | Revenue | Net Income |
|---|---|---|
| 2004 | $707.6 | $50.6 |
| 2005 | $910.5 | $58.1 |
| 2006 | $1,013.2 | $63.4 |
| 2007 | $1,033.2 | $74.5 |
| 2008 | $1,037.9 | $69.5 |
| 2009 | $1,012.7 | $75.1 |
| 2010 | $812.1 | $72.7 |
| 2011 | $848.8 | $63.9 |
On September 26, 2003, Fitch Ratings confirmed the credit ratings for Northwest Natural Gas Co., assigning an 'A' rating to first mortgage bonds and secured medium-term notes; an 'A−' rating to senior unsecured debt, convertible debentures, and preferred stock; and an 'F1' rating to commercial paper.