New PSE rate changes approved by state regulators. Here’s how much you can expect to pay
Puget Sound Energy customers should expect their rates to go up this month after the state Utility and Transportation Commission approved rate increases on Jan. 15 for PSE’s electric and natural gas customers for the next two years.
According to a UTC news release, PSE’s electric revenue will increase by $326.6 million or 11.5% this month, and then by $203.3 million or 6.4% in January 2026.
Natural gas revenue will increase $109.8 million or 10.6% this month and an additional $21.1 million or 1.8% in January 2026.
This means a typical residential electric customer using 800 kWh of energy per month can expect an increase of $13.08 or 12% this year for an average monthly bill of $122.16. An additional $7.67 or 6.3% monthly increase is expected in 2026, resulting in an average monthly bill of $129.83.
A typical residential gas customer using 64 therms per month can expect an increase of $7.56 or 9.4% in 2025 for an average monthly bill of $88.21 and an additional $1.65 or 1.9% per month in 2026 for an average monthly bill of $89.86.
According to the release, the commission’s decision to increase rates supports state laws focused on transitioning to clean energy while ensuring fairness for customers and encouraging utilities to consider their impact on low-income households.
The commission also authorized PSE to start recovering a return on specific purchase power agreements. This is the first time the commission has allowed a return on these agreements under the Clean Energy Transformation Act.
As part of the two-year rate plan, the commission increased PSE’s return on equity from the previously authorized rate of 9.4% to 9.8% in January 2025 and 9.9% beginning in January 2026.
The commission denied PSE’s request to recover costs through separate trackers, as well as certain expenses related to clean generation resources, and a pilot program for electrification, according to the release. The commission did not approve the company’s proposals for targeted electrification or accelerated depreciation for PSE’s gas plant, citing the need for further review in light of the passage of Initiative 2066.
The initiative rolled back energy service regulations on natural gas and electrification.
The commission also rejected the company’s request to include projects aimed at using alternative fuels, such as renewable natural gas and hydrogen, in the rate structure.
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