SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
April 5, 2001
Date of Report (Date of earliest event reported)
[LOGO OMITTED] NW NATURAL
NORTHWEST NATURAL GAS COMPANY
(Exact name of registrant as specified in its charter)
Commission File No. 0-994
Oregon 93-0256722
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
220 N.W. Second Avenue, Portland, Oregon 97209
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (503) 226-4211
Part II. OTHER INFORMATION
Item 5. Other Events
The following press release was issued by Northwest Natural Gas
Company on April 5, 2001:
PORTLAND, Ore. - Northwest Natural Gas Company (NYSE: NWN), dba NW
Natural, said that its earnings for the quarter ended March 31, 2001 will be
reduced from expected levels due to the effects of high gas commodity prices on
customers' consumption patterns.
"Residential and commercial customers' consumptions per heating degree
day were about 7 percent lower during the 2000-01 heating season than in the
prior heating season," NW Natural's chief financial officer, Bruce R. DeBolt,
said Thursday. "We think much of the reduction was due to the rate increases we
had to apply last fall to pass through our much higher cost of purchased gas."
DeBolt said the Company estimates that its earnings for the quarter
ended March 31, 2001 will be in the range of $0.95 to $1.05 a share, compared to
recent Street estimates of $1.05-$1.15 a share. He added that if the consumption
pattern from the 2000-01 heating season were to continue for the full year, it
could reduce margin revenues in 2001 by the equivalent of 25-35 cents a share of
earnings from the recent Street estimates of $1.85-$1.88 a share. He estimated
that due to normal seasonal variations in consumptions, about 5-10 cents a share
of the potential additional exposure would be in the quarter ending June 30 and
about 10-15 cents a share in the quarter ending December 31, 2001.
NW Natural is engaged in discussions with the Oregon Public Utility
Commission concerning a mechanism that would stabilize its margin revenues in
the face of variable consumption patterns, while improving the effectiveness of
its programs to encourage customers to improve energy efficiency and manage
their energy bills. The Company's goal is to have such a mechanism in place
before the next heating season starts in October 2001, thereby mitigating any
further losses during the current fiscal year.
"We believe we will also be able to offset at least a part of the
potential negative impact of reduced consumptions during the rest of the year
through continuing cost controls and incremental revenues from new services,"
DeBolt added.
The Company's earnings estimates are based on an assumption of average
weather conditions in NW Natural's service territory. Actual results would be
affected by this and other uncertainties and risk factors explained in more
detail in the Company's filings with the Securities and Exchange Commission.
Weather conditions in NW Natural's service area for the three months
ended March 31, 2001, were close to average, measured in comparison to the
25-year average of heating degree days for the region. A heating degree day is a
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measure of the coldness of weather based on the extent to which the average of
the high and low temperatures for a day falls below 65 degrees Fahrenheit.
Weather in the first quarter of 2001 was 4.5 percent warmer than last year's
first quarter, which was 6 percent colder than the 25-year average.
DeBolt said that NW Natural expects to report its results for the
first quarter by press release on April 19. In addition, the Company will make a
presentation that day to the investment community in Boston. A copy of that
presentation will be available on the Company's website, www.nwnatural.com, at
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2:00 p.m. EDT Thursday, April 19, 2001.
NW Natural, headquartered in Portland, Oregon, serves about 525,000
customers in Oregon and southwest Washington.
NOTE: This report contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The
Company's future operating results will be affected by various uncertainties and
risk factors, many of which are beyond the Company's control, including
governmental policy and regulatory action, the competitive environment and
economic factors, as well as weather conditions. For a more complete description
of these uncertainties and risk factors, see the Company's filing with the
Securities and Exchange Commission on Form 10-K for the year ended Dec. 31,
2000.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NORTHWEST NATURAL GAS COMPANY
(Registrant)
Dated: April 5, 2001 /s/ Bruce R. DeBolt
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Senior Vice President and
Chief Financial Officer
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