PSE wants to add around $51 a month to your electric bill by 2029

Puget Sound Energy (PSE) has proposed rate increases that would add roughly $51 a month to a typical residential electric bill by 2029.

PSE has filed a plan with state regulators to raise residential electric rates by nearly 30% from 2027 through 2029, as outlined in a recent news release. The utility company is looking to bring in more than $1.5 billion over the three-year rate period.

If approved, a typical electric customer using 800 kWh per month would see a monthly bill increase starting in early 2027 of approximately $28, about $7 in 2028, and nearly $16 in 2029, according to PSE. A typical natural gas customer using 64 therms per month would see a monthly bill increase of about $14 in early 2027, about $4 in 2028, and nearly $5 in 2029.

Bill Gaines, the executive director for the Alliance of Northwest Energy Consumers, told KIRO 7 the increases reflect a shift toward renewable energy.

“It is a big rate increase, and it’s on top of another big rate increase that occurred not so long ago,” he added.

PSE cites infrastructure investments, clean energy mandates for rate hikes

PSE acknowledged that a rate increase is hard to put on families, but said it is necessary to continue delivering safe and reliable natural gas and electric service to its approximately 1.7 million customers.

“Any increase in monthly bills is difficult for the families and businesses we serve. We take that seriously,” Mary Kipp, president and CEO of Puget Sound Energy, stated in the release. “At the same time, our customers count on us for safe, reliable energy, and many expect that energy to become cleaner in line with Washington’s climate laws. This rate plan reflects the balance we must strike: keeping our gas and electric system strong and dependable, investing in cleaner resources that will power our future, and doing so as responsibly and thoughtfully as possible.”

PSE stated that over the next three years, it needs to invest $3.2 billion in its gas and electric system. It noted 70% of that investment will go toward the electric system, which is under increasing strain.

“Electric system investments focus on system safety and reliability, meeting growing customer demand and hardening PSE’s infrastructure against more severe weather and wildfire risks,” PSE stated.

The utility said the investments will go toward projects to reduce outages, shorten restoration times, and strengthen the grid’s resilience to storms. The plan also invests in rooftop solar, battery storage, and smart EV charging. The remaining 30% will support safety and maintain current infrastructure for the company’s 900,000 natural gas customers.

11 new renewable energy projects

In addition to supporting infrastructure, the rate plan includes 11 new utility-scale renewable energy projects. Under state law, PSE must provide 80% of electricity from renewable or non-emitting resources by 2033.

Clean energy resources include the recently announced Schnebly Coulee solar project in Kittitas County, the Appaloosa Solar Project in Southeastern Washington, and the Haymaker Wind Farm in Montana.

Also included in the plan is $529 million in federal tax credits, which PSE said will benefit customers by reducing the costs of new generation projects. There is also funding set aside to cover resources such as batteries, gas turbines, and gas generation, which are needed when the wind isn’t blowing and the sun isn’t shining.

The rate changes now head to the Utilities and Transportation Commission (UTC) for final review. PSE noted the UTC’s review process can take up to 11 months and that the UTC has the authority to set final rates that may differ from PSE’s request.

For those who need help paying their bills, the utility offers income-qualified programs available on PSE’s website.

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