PSE rates to increase over next two years

Birch Bay residents will see increases in their Puget Sound Energy (PSE) utility bills starting this month and continuing through next year.

The Washington Utilities and Transportation Commission approved on January 15 to increase electric rates by 11.5 percent this month and then 6.4 percent next January. The first increase will up electric bills by $13.08, to $122.16, for an average resident using 8000 kWh of energy per month. An average residential bill will then increase by $7.67, to $129.83, in January 2026.

Natural gas rates will increase 10.6 percent this month and 1.8 percent in January 2026. The first increase will add $7.67, or $88.86 for the total bill, for the average residential gas customer using 64 therms per month. The second increase would add $1.65 per month, bringing the average bill to $89.86.

The commission is a state agency regulating private electric and natural gas utilities in Washington, such as PSE, which supplies electric service to over 1.2 million customers and natural gas service to over 900,000 customers.

The increase supports the state’s transition to clean energy. The commission authorized PSE to recover a return on certain purchase power agreements, which is the first time the commission has allowed this under the Clean Energy Transformation Act.

The commission denied several of PSE’s requests, including a pilot program for electrification and recovering costs through separate trackers.

PSE does not provide electricity to people living in the city of Blaine; Cascade Natural Gas serves as the city’s provider.

In 2023, Whatcom County Public Utility District 1 commissioners considered ending its contract with PSE to serve county customers, but found the market rates for power would have increased. The PUD purchases power to run one industrial customer at Cherry Point and two water treatment plants.