Washington Announces Partial Agreement on Puget Sound Energy’s Renewable Energy Program

The Washington Utilities and Transportation Commission on Aug. 15 announced a partial multi-party settlement in Puget Sound Energy’s existing rate increase request, explicitly addressing the company’s Green Direct Program. The agreement is subject to authorization by the three member commission.

The program permits commercial and governmental clients to willingly purchase 100 percent of their energy from dedicated regional and renewable energy sources.  This settlement allows Puget Sound to offer Green Direct buyers accessibility to clean energy without shifting costs to other ratepayers and receive an energy credit.

Puget Sound filed a request to update its current rates and services in January 2022, involving the Green Direct energy charge credit issue recognized in previous rate cases. The commission assessed the program in 2019 and 2020. In 2020, the commission endorsed a settlement agreement that tackled issues related to Green Direct, and in its final order stated that PSE should examine how to calculate the energy credit charge with Green Direct customers and communicate its findings to the commission. As of January 1, 2023, the Energy Charge Credit would be $47.826 per MWh and is expected to increase by two percent each year thereafter.

The settlement establishes the Green Direct energy charge credit rate and permits the company to retrieve the costs related with the charge credit.  The settlement also looks into the retrieval of administrative program expenses to administer the program and how Puget Sound will distribute monetary damages obtained from functioning setbacks to the Skookumchuck Wind Energy Project.

The commission will conduct a public comment hearing on Sept. 28 to examine all of the concerns in Puget Sound’s rate case, including the Green Direct settlement. Moreover, the commission will carry out its assessment of the company’s appeal and any associated agreements by Dec. 31.