SALEM, Ore. (AP) -- A rate hike of nearly 12 percent requested by Avista Utilities for natural gas customers scattered around rural Oregon has been reduced to about 7 percent by state regulators.

Avista asked for a rate hike in July to help pay for pipeline projects. But the Oregon Public Utility commission decided Monday to reduce the increase.

Commission Chairman Lee Beyer said Avista customers in Oregon will actually see their bills go down because recent declines in natural gas prices triggered a 20 percent overall rate decrease that went into effect this week.

Avista serves about 95,000 customers in LaGrande, Roseburg, Medford and Klamath Falls.