Tacoma Public Utilities rates to go up for the next 2 years

Tacoma Public Utilities (TPU), following the lead of its Seattle counterpart, is set to raise its monthly power rates in both 2025 and 2026. The average electric bill is currently around $105 a month. That will go up by about $7.

According to the company, increased operational costs, supply-chain shortages and the need for aging infrastructure repairs have all contributed to the increases. Rosa McLeod, TPU’s regional relations manager told the Tacoma News Tribune (TNT) these factors have impacted their ability to provide reliable service, necessitating cost adjustments.

In 2023 and 2024, TPU’s increased rates by 3.5% in both years. McLeod emphasized that TPU faces challenges similar to those experienced by ratepayers and governments. As part of its long-term strategic plan, Seattle City Light estimates customers will see a 5.4% cost increase in each of the next two years and a 5% increase each year after that through 2030.

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The rates for Tacoma power go into effect in April of each year. The average increase for power will be 6.75% in 2025 — a $6.72 average monthly increase. In 2026, that increase will be 6.5% — a $7.09 average monthly increase.

The rates for Tacoma water go into effect in January of each year. In 2025 the average increase will be 6.3% and in 2026 the average increase will be 6.3%. However, the prices for water differ inside and outside the City of Tacoma. Inside the City of Tacoma, the average monthly increase for 2025 will be $2.86 and for 2026 the average monthly increase will be $3.10. Outside the City of Tacoma, the average monthly increase for 2025 will be $3.46 and in 2026 will be $3.67. Rates in University Place are slightly higher due to a 6% utility tax from the city.

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When TNT questioned Nathan Schumer, TPU’s rates and data analyst, on why the rates are exceeding inflation he said dams require relicensing this year, a process expected to cost hundreds of millions of dollars and the Bonneville Power Administration (BPA) is raising its rates. Cost increases are also from fixed transmission and distribution costs such as transformer costs (up 282%), multiplex wire (up 137%) and utility poles (up 48%).

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.