State regulatory staff would limit the investor-owned utility to a annual revenue increase of $39 million from electric rates and $1.5 million from natural gas rates, compared to the $152 million and $30 million the utility is seeking.
The three-member utility commission, which is not bound by the staff recommendation will make a final decision on the rate hike in the spring of 2012.
The Puget Sound Energy request filed in June would have boosted electric rates roughly 8 percent and gas rates approximately 3 percent.
“This is part of the process, that is a good process for our customers. Our customers can be confident that the right steps are being taken,” said Andy Wappler, spokesperson for PSE.
“We believe the investments we are taking are the right ones to keep our region running well in the future,” Wappler said.
Under the UTC staff plan, a typical residential electric customer would see a bump in their monthly bill for 1,000 kilowatt-hours of electricity of $2.05 for a total bill of $98.54.
The average natural gas bill would climb 13 cents per month to $81.72.
The major reason for the sharp reductions from the utility request include:
• The utility would be allowed to recover less money than it requested for development of the Lower Snake River Wind Project.
• Increases in power costs, storm damage costs and incentive pay would be reduced under the staff proposal.
• The staff would allow Puget Sound Energy to earn a maximum rate of return of 7.59 percent, compared to the 8.42 percent originally sought by the private utility. This accounts for an $85 million difference in annual revenues.
The staff to the UTC is also calling on Puget Sound Energy to step up efforts to resolve problems with inaccurate meter readings first identified in 2008, problems that large retroactive bills for some customers.
Puget Sound Energy serves more than 1 million electric customers, including all of Thurston County, and 750,000 natural gas customers.
John Dodge: 360-754-5444 jdodge@theolympian.com
public forum
A public hearing on proposed rate increases to Puget Sound Energy electric and natural gas customers is set for 6 p.m., Feb. 15, at UTC headquarters, 1300. Evergreen Park Dr. S.W., Olympia.
