Washington Regulators Reject Reconsideration of Puget Sound Energy’s $215 Million Rate Hike Request

The Washington Utilities and Transportation Commission on March 18 denied a request from Puget Sound Energy to reconsider increasing utility rates by $215 million over two years. The company asserted that the rate increase was required to maintain good cash flow and credit ratings. The commission reconsidered and approved the utility’s voluntary electrification pilot project, Targeted Electrification Pilot Phase II, or TEPP II, to give low-income residents access to energy-efficient home appliances.

The utility company requested a reconsideration of the January order and a review of cost recovery associated with the development of energy projects. Regulators denied this request, finding that increasing the rates further would be unfair to customers.

Puget Sound’s request would have led to increases of $109 million rise in 2025 and $106 million in 2026, in addition to the rate hike approved in January 2025. The January order will permit the company to raise electricity rates by 11.4 percent or $326.6 million in January 2025 and 6.4 percent or $203.3 million in January 2026. The commission approved the rate increase on the grounds that it would support Washington’s clean energy goals and energy transition.

Furthermore, the commission authorized the utility to recover costs from certain purchase power agreements. However, the January decision denied the company’s request to incorporate certain costs for clean energy projects in the rates and also denied the proposal for the targeted electrification of the utility’s natural gas plant.

The commission approved TEP II costs of $10.4 million for 2025 and $11.6 million for 2026. A group of environmental advocates sought a reconsideration of the commission’s rejection of TEP, claiming that the pilot program will drive electrification efforts and help pave the way for meeting Clean Energy Transformation Act goals. The voluntary electrification program incentivizes customers to switch to energy-efficient, electric home appliances from appliances that use natural gas.