Puget Sound Energy’s Three-Year Rate Plan Proposes Investments to Meet Washington’s Clean Energy Goals

Puget Sound Energy has filed a three year rate plan with the Washington Utilities and Transportation Commission requesting revenue increases that revolve around delivering secure and efficient energy, improving climate resiliency and accelerating efforts towards meeting striving clean energy goals. Under the plan, proposed for the 2023-2025 period, a residential customer would see an average monthly bill increase of $12 for electricity and $9 for gas next year.

The utility proposes an increase in electric revenue requirement of $310.6 million for 2023,  $63.1 million for 2024, and $31.8 million for 2025. For natural gas revenues, the utility seeks increases of $142.1 million, $28.5 million, and $23.3 million, for the first, second and third years, respectively, of the rate plan.

The proposal included a number of energy infrastructure projects and improvements including:

• The PSE’s Baker River hydroelectric project
• The Energize Eastside transmission project
• Enhancement of PSE’s advanced metering infrastructure
• Investment in modernising the electrical grid
• Assistance for electric vehicle adoption
• Installation of distribution energy resources
• Modernization and decarbonization of the natural gas pipeline system
• Improvements to customer facing technology

The plan facilitates the next stage of the transition to a clean energy future. The 2019 Clean Energy Transformation Act requires the state’s electricity supply to be carbon-neutral by 2030 and carbon-free by 2045, and directs electric utilities to phase out coal from their generation portfolio by 2025. Further, the plan takes into consideration extended support for low income and financially disadvantaged customers.

Puget Sound’s proposals are expected to increase residential customers’ bills for gas and electricity, however, the income generated is to be used as an investment to improve service and reliability and meet the state’s clean energy policy objectives. Actions proposed by the utility include a new reduction rate for financially disadvantaged customers and senior citizens, a $10 million per year increase in financial aid for low income bill payment assistance and an innovative program that would pardon the debt of entitled customers facing considerable previous due balances. Furthermore, the proposal factors into the rates, the recouping of $3.1 billion in reliability and service upgrades over the past four years.

For residential customers, the request would raise rates in the first year by a net of 12.9 percent for electricity and 11.9 percent for gas, commencing in January 2023, with hikes of between 1.2 and 2.7 percent in the second and third years.

The proposed rate change will endure a review process of up to 11 months by the commission, which has the authorisation to set final rates that differ from the utility’s original request.