Washington regulators approve Microsoft-PSE renewable energy contract
The Washington Utilities and Transportation Commission (UTC) recently approved an agreement that will allow Microsoft to source renewable energy from providers other than Puget Sound Energy (PSE) the wholesale market or construct its own generation.
The settlement is designed to enable Microsoft to reach its renewable energy and carbon neutrality markets, while also avoiding cost shifts for PSE ratepayers. It also aims to advance state policies on the development of renewable resources and supporting low-income initiatives.
“Microsoft has demonstrated that it is committed to achieving 100 percent carbon-free electricity to power its operations in Washington state,” UTC Chairman David Danner said. “The agreement we approve today supports the company’s impressive efforts in this area, and does so without impacting Puget Sound Energy’s other customers.”
The agreement requires the technology company to obtain only renewable and carbon free energy resources, continue its contributions to PSE’s energy efficiency program and pay a $23.6 million transition fee that PSE will return to its customers.
Microsoft also committed to continue its current contributions to PSE’s low-income bill assistance program and provide funds to improve low-income access to energy efficiency services and renewable energy technology.
The settlement does not require Microsoft to be responsible for part of the cost of decommissioning PSE’s coal-fired electric plants in Colstrip, Montana if they are retired. The Commission, however, said that those costs are Microsoft’s responsibility under the law regardless of the settlement.
