‘Costs will keep going up’: WA Policy Center says CO2 tax is driving energy bills higher, offers savings tips

Puget Sound residents are feeling the impact of the CO2 tax, with some reporting bills jumping 20% to 40%.

Todd Myers, vice president for research at the Washington Policy Center, explained to “The Gee and Ursula Show” on KIRO Newsradio that energy bills will keep increasing due to the Climate Commitment Act (CCA), which is essentially the CO2 tax — a tax on coal and natural gas-generated energy with the goal of reducing greenhouse gas emissions.

“It’s going to continually increase because the cost of the CO2 tax keeps going up every single year,” Myers said. “That’s what it’s designed to do. The goal of the climate policy is to increase the cost of CO2 emissions and basically force people and utilities to switch off of that.”

The Washington Policy Center worked to overturn a Utilities Commission ban that prevented Puget Sound Energy from showing the CO2 tax on customer bills. Starting around June, residents will be able to see that cost.

Myers noted in Spokane, the CO2 tax costs natural gas customers about 20% more than before.

Who to blame for higher bills

He added that residents often blame Puget Sound Energy (PSE) for their rate increases, but the real culprit is the Washington Utilities and Transportation Commission.

“The Utilities Commission has to approve any rate increases, and PSE has to justify it,” he explained. “So what they say is, ‘Here’s what the increase is from the tax on CO2 emissions. Here are other elements of rate increases. This is the request that we’re asking for.’ And so then the Utilities Commission says, ‘Yes, that’s justified. Go ahead and raise your rates.'”

He said the same happens with Seattle City Light, which is a publicly owned utility; therefore, rates are approved by the City of Seattle.

$200 rebate proposed in budget

Although there is little relief for consumers right now, a $200 rebate has been proposed in the state budget for some residents.

However, “That rebate actually probably doesn’t cover all of the increased costs, and it’s only for some people,” Myers said.

He reiterated that the costs are going to continue to go up.

“That’s not an accident. That’s the way the system is designed,” Myers said.

Ways to cut your electricity costs

Still, there are ways to save. Seattle City Light will soon offer Time of Use rates, which let customers take advantage of lower costs during off-peak hours. PSE already offers a similar program, and customers can enroll now.

“Between the hours of 4 and 7 p.m., electricity actually costs more. Most people don’t realize that because they’re insulated from it,” Myers explained. “So if people have that option, they should do that. That’s a way that they can almost immediately reduce, or at least take more control of, their electricity costs.”

Billions in revenue

While the CCA has increased energy costs, Myers noted it has been generating revenue.

“It’s creating a lot of money, in fact, more than they even expected last year. They expected that this year would create about a billion dollars in tax revenue,” he said.

Watch the full discussion in the video above.

Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 am to 12 pm on KIRO Newsradio.