Company officials from the three utilities supplying natural gas to Oregon customers offered projections to the Oregon Public Utility Commission today, and the news wasn’t pretty.

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Northwest Natural says its 595,000 customers in Oregon can expect a rate increase between 35-40%. Cascade, which supplies 200,000 customers in eastern Oregon, says rates will go up 15-20%. Avista, the gas company for southern Oregon, is projecting a 10-15% increase.

All three companies pointed to higher demand worldwide and flat supply for the rise in natural gas costs. NW Natural’s Gregg Kantor said: “We cannot protect our customers from soaring commodity prices.”

The utilities will make their applications for rate hikes to the PUC on August 29, and the increases would go into effect November 1, 2008.

The rise in natural gas prices comes on the heels of an increase in electricity prices. PGE projects a rate increase of 15% for next year.