Puget Sound Energy (PSE) customers, including those in Federal Way, could face significant increases in their electricity and natural gas bills following a rate hike proposal currently under review by the Washington Utilities and Transportation Commission (UTC). The proposal, which seeks to raise electricity rates by 29.3% and gas rates by 19.8% over the next three years, drew strong public opposition at a packed hearing on Tuesday, September 29, held at the UTC’s Lacey headquarters.
The proposed increases follow an 18.85% rise in electricity rates earlier this year. Beyond higher customer bills, PSE is also asking regulators to approve an increase to its allowed return on equity for shareholders, from 9.9% to 10.8%. This proposal affects customers across the utility's service area, including Federal Way households and businesses.
The four-hour hearing saw approximately 100 commenters voice concerns over affordability, with many expressing that current energy bills are already difficult to manage. Becky Foster, a PSE ratepayer from Thurston County, shared her experience, stating her energy bill has “skyrocketed” by more than 50% in the last two years. Foster noted paying around $600 a month for energy during winter months and reported an annual electricity cost of $2,800 between 2022 and 2023. Her testimony reflected a common sentiment among attendees, including retired individuals on fixed incomes, low-income households, and those relying on electronic medical devices, who are particularly vulnerable to further increases.
State Representative Beth Doglio (D-Olympia) addressed the three commissioners directly, stating her constituents are “struggling to pay their energy bills.” Rep. Doglio emphasized the need to both keep lights on and protect the climate, questioning if PSE's proposed investments are “necessary? Cost-effective? And, consistent with Washington’s clean energy goals?” Doglio, who sponsored House Bill 1589 in 2024 to direct utilities to phase out natural gas, noted that the law was not intended to be used while a utility simultaneously increases investments in natural gas. Attorney Jan Hasselman of Earthjustice echoed these concerns, calling the utility’s plans for significant fossil fuel investments a “very bad use of ratepayer dollars” that would interfere with pollution and climate objectives.
PSE stated that its power supply costs have tripled since 2019, when Washington passed the Clean Energy Transformation Act, which mandates greenhouse gas-neutral electricity sales. In a statement, the utility acknowledged that “higher bills are difficult for our customers” but maintained that “the cost of providing safe and reliable energy has increased significantly.” Critics, including Hasselman, specifically pointed to PSE’s intention to convert the shut-down Centralia Power Plant into a gas-fired facility, projected to begin operations in late 2028. The utility is also seeking ratepayer recovery for two additional planned gas-turbine projects. Hasselman described this situation as a “horribly ironic feedback loop” where more money is spent on fossil fuel projects while simultaneously trying to make the system resilient to climate change.
The three Utilities and Transportation Commission commissioners are expected to make a decision on the proposal, whether to accept, reject, or modify it, in early January. Another opportunity for public comment is scheduled for October 7.