Puget Sound Energy customers will see rate hikes this spring for electric and gas bills. The rate increases will take place over the next two years after the Utility and Transportation Commission approved the increase on Wednesday, Jan. 15.
That means the average residential electric customer who uses 800 kWH of energy per month can expect an increase of $13.08, or 12%, for an average monthly bill of $122.16 in 2025. Then in 2026, an additional $7.67, or 6.3%, monthly increase is expected, resulting in an average monthly bill of $129.83.
The average residential gas customer who uses 64 therms per month can expect an increase of $7.56, or 9.4%, for an average monthly bill of $88.21 in 2025. Next year, an additional $1.65, or 1.9%, per month will mean an average monthly bill of $89.86.
PSE’s electric revenue will increase by $326.6 million or 11.5% in January 2025 and then by $203.3 million or 6.4% in January 2026, according to the news release sent by the UTC.
Natural gas revenues will increase by $109.8 million or 10.6% in January 2025 and an additional $21.1 million or 1.8% in January 2026.
The decision to raise rates comes 11 months after PSE proposed an increase citing the need for more renewable resources and reliable power amid high inflation, and to remain financially competitive, according to the Seattle Times.
As part of the UTC’s decision, PSE will also start recovering a return on specific purchase power agreements. It’s the first time under the Clean Energy Transformation Act the UTC has allowed the returns.
PSE’s return on equity will also increase as part of the deal, from 9.4% to 9.8% in 2025 and 9.9% in 2026.
However, the commission denied PSE’s request to recover costs through separate trackers, as well as certain expenses related to clean energy generation and a pilot program for electrification.
The commission also denied the company’s proposals for targeted electrification, or accelerated depreciation for PSE’s gas plant, which would have let PSE speed up how quickly it’s passing off the cost of natural gas infrastructure to gas customers. The UTC cited more review was needed after voters approved Initiative 2066, which blocks the state from restricting natural gas use in homes and businesses. The ballot initiative is currently being litigated in two different lawsuits.
PSE’s request to include projects aimed at using alternative fuels, such as renewable natural gas and hydrogen, in the rate structure was also denied by the commission.
Annie Todd is CDN’s criminal justice/enterprise reporter; reach her at annietodd@cascadiadaily.com; 360-922-3090 ext. 130.
