LACEY—The Washington state Utility and Transportation Commission on January 15 approved rate increases for Puget Sound Energy (PSE) electric and natural gas customers, set to take effect over the next two years.
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. Natural gas revenue will increase by $109.8 million or 10.6% in January 2025 and an additional $21.1 million or 1.8% in January 2026.
A typical residential electric customer using 800 kWh of energy per month can expect an increase of $13.08 or 12% in 2025 for an average monthly bill of $122.16. An additional $7.67 or 6.3% monthly increase is expected in 2026, resulting in an average monthly bill of $129.83. This equates to an out-of-pocket expense for the average residential electric customer of $249 over the next two years.
A typical residential gas customer using 64 therms per month can expect an increase of $7.56 or 9.4% in 2025 for an average monthly bill of $88.21 and an additional $1.65 or 1.9% per month in 2026 for an average monthly bill of $89.86. This equates to an out-of-pocket expense for the average residential gas customer of $111 over the next two years.
The commission’s decision supports state laws focused on transitioning to clean energy while ensuring fairness for customers and encouraging utilities to consider their impact on low-income households. The commission also authorized PSE to start recovering a return on specific purchase power agreements. This is the first time the commission has allowed a return on these agreements under the Clean Energy Transformation Act.
As part of the two-year rate plan, the commission increased PSE’s return on equity from the previously authorized rate of 9.4% to 9.8% in January 2025 and 9.9% beginning in January 2026.
The commission denied PSE’s request to recover costs through separate trackers, as well as certain expenses related to clean generation resources, and a pilot program for electrification. Additionally, the commission did not approve the company’s proposals for targeted electrification or accelerated depreciation for PSE’s gas plant, citing the need for further review in light of the passage of Initiative 2066. The commission also rejected the company’s request to include projects aimed at using alternative fuels, such as renewable natural gas and hydrogen, in the rate structure.
Bellevue-based Puget Sound Energy provides electric service to more than 1.2 million customers across eight Washington counties: Island, King, Kitsap, Kittitas, Pierce, Skagit, Thurston, and Whatcom. PSE also supplies natural gas service to over 900,000 customers in six Washington counties: King, Kittitas, Lewis, Pierce, Snohomish, and Thurston.
The Utility and Transportation Commission is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
Source: Utility and Transportation Commission
Author: Lynnwood Times Staff
