Puget Sound Energy lays out three-year rate plan through 2025
Puget Sound Energy (PSE) submitted a new three-year rate plan to the Washington Utilities and Transportation Commission (UTC), outlining proposed rate increases and infrastructure investments.
If approved, the average residential customers would see a 12.9 percent increase in their electricity bills and an 11.9 increase in their natural gas bills for the first year, starting in January 2023. This would translate to a $12 monthly increase for the average electricity customer and a $9 monthly increase for the typical natural gas customer.
Over the two years beyond that, 2024 and 2025, the increases would go down. Rates would rise between 1.2 percent and 2.7 percent in the second and third years. Increases for business customers would vary according to the tariff service categorization for electric and natural gas customers. The proposal does not factor in the recovery of approximately $3.1 billion in reliability and service upgrades made over the past four years.
This plan puts Puget Sound Energy on the path to meeting the 2030 and 2045 carbon-reduction targets set by the 2019 Washington Clean Energy Transformation Act (CETA). To comply with CETA, PSE will significantly increase the amount of clean electricity in its portfolio. By the end of 2025, the company plans to have more than 60 percent clean electricity, up from 34 percent in 2020.
“We’re asking more of our energy infrastructure now than ever before, whether it’s to help withstand the demands of record-setting weather such as we saw in 2021 or to do our part in meeting the challenge of climate change by 2030 and beyond,” Andy Wappler, senior vice president and chief customer officer, said.
The Baker River hydroelectric project and the Energize Eastside transmission project are among the proposed energy infrastructure improvements.
PSE also proposes the installation of PSE’s advanced metering infrastructure to replace old meters; investments in modernizing the electrical grid to improve the system’s resilience and reliability, especially during severe weather; support for electric vehicle adoption, including public charging stations and customer education around electric vehicles; installation of Distributed Energy Resources (DERs) such as local rooftop, ground solar, and battery storage programs; modernization of the natural gas pipeline system; and upgrades to customer-facing technology and online self-service tools.
The proposal also includes nearly $10 million per year in expanded assistance for low-income and economically disadvantaged customers. As part of that, PSE is proposing a new discount rate for low-income customers and seniors, as well as increased funding for low-income bill payment assistance. It also includes a new program that would forgive the debt of eligible customers facing significant past-due balances. Officials encourage customers to take advantage of the company’s energy efficiency rebates and tips.
“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,” Wappler said. “Our rate proposal seeks to make progress toward both the new technologies we need to drive our economy and the creation of jobs for tomorrow, all while providing a helping hand right now.”
