PSE requests a 12.9 percent rate increase next year

Puget Sound Energy (PSE) submitted a three-year proposal February 1 with the Washington Utilities and Transportation Commission (UTC) to increase rates by 12.9 percent in 2023. Increases in the second and third years would be between 1.2 and 2.7 percent, according to a PSE press release.

If approved, a typical residential electric customer would see an average monthly bill increase of $12. Natural gas customers could see an increase of $9 per month.

PSE residential electric bills have increased at less than two percent per year for the last 10 years, the release says, while residential gas customer bills have declined over the same period.

The energy company says the rate increases reflect investments to improve service reliability, meet clean energy policy objectives and assist low-income customers, according to the release. It will help PSE meet the 2019 Washington Clean Energy Transformation Act’s (CETA) 2030 and 2045 carbon-reduction targets, and refund about $3.1 billion in reliability and service upgrades made over the past four years that have not been factored into current rates.

“Higher bills are never welcome, yet failing to build a stronger, cleaner grid is the wrong choice for providing our customers with resilient, low-carbon energy they can count on every day,” said Andy Wappler, PSE senior vice president and chief customer officer, in a statement.

Proposed rate changes in Washington undergo a UTC review process that can take up to 11 months. UTC has the authority to set final rates that may vary from PSE’s request.

Some of the energy infrastructure projects that the increased rates would fund include PSE’s Baker River hydroelectric project, advanced metering infrastructure, electric vehicle charging stations and solar panel installations on homes and businesses. Investments will also be made into strengthening and modernizing the electrical grid to improve the system’s resilience and reliability, particularly during peak demand events resulting from climate change, like severe weather. 

Governor Jay Inslee signed CETA into law in May 2019, committing the state to an electricity supply free of greenhouse gas emissions by 2045.

PSE plans to have 60 percent clean electricity by the end of 2025 to comply with CETA. According to the release, 34 percent of PSE’s electricity was clean in 2020. In January 2021, PSE made it a goal to be net zero and help enable carbon reduction in other sectors by 2045. 

Wappler encouraged customers to take advantage of the company’s energy efficiency rebates and tips at pse.com/rebates.

The proposed increased rates would also create a new discount rate for low-income customers and seniors as well as supply funding for low-income bill payment assistance. 

PSE would create a new program that would forgive eligible customers of the debt they incurred during the pandemic in past-due balances. According to the release, crisis assistance programs developed in coordination with UTC and community advocates have assisted more than 90,000 local families, in which PSE has made more than $53 million available since April 2020.