Title
Approval of a Resolution Opposing Puget Sound Energy’s Proposed 30% Electrical Rate Increase Over Three Years
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution opposing Puget Sound Energy’s proposed 30% electrical rate increase over three years.
Report
Issue:
Whether to approve a resolution opposing Puget Sound Energy’s proposed 30% electrical rate increase over three years.
Staff Contact:
Pamela Braff, Director of Climate Programs, City of Olympia
360.753.8249
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Puget Sound Energy (PSE) has raised electrical rates by about 20% over the past two years. The proposed 30% rate increase would result in a cumulative 50% rise for residential customers within a four-year period.
While PSE must invest in renewable energy, transmission upgrades, and grid modernization to comply with Washington’s Climate Commitment Act, these expenditures benefit the public and require careful evaluation. However, it is important that any increases in rates be equitable for residential customers, especially low income households, seniors, and working families, especially costs associated with primarily large commercial and industrial energy users.
Washington’s clean energy transition must be fair and protective of residential ratepayers; extraordinary new commercial energy demand should be paid for by the industries that generate it.
The Washington Attorney General has challenged PSE’s proposed 29% electric and 20% gas rate hikes as excessive and inconsistent with state requirements that rates be “fair, just, and reasonable.” PSE’s proposal would raise the average household’s electric bill by $606.96 per year and gas bill by $263.52 per year by 2029, on top of rate increases that nearly doubled electric rates between 2020 and 2025.
More that 30% of households in PSE’s service area are housing burdened, and high utility prices correlate with increased evictions, underscoring the need to prevent unnecessary or inequitable rate increases.
Climate Analysis:
Reasonable and equitable rate increases by residential ratepayers will support actions by PSE to invest in efforts to comply with Washington’s Climate Commitment Act, but such increases should be protective of residential ratepayers and extraordinary new commercial demand should be paid for by the industries that generate it.
Equity Analysis:
PSE’s proposed rate increase for electrical and gas service are excessive and inconsistent with state requirements that rates be “fair, just, and reasonable” for residential ratepayers. Commercial demand should be paid for by industries that generate it. Of the households in PSE’s service area, 30% are housing burdened, and high utility prices correlate with increased evictions. This level of rate increase for residential households is incompatible with state requirements that rates by fair, just, and reasonable.
Neighborhood/Community Interests (if known):
Olympia residents have voiced concerns about PSE’s proposed residential rate increases.
Financial Impact:
If PSE’s proposed 30% electrical rate increase over three years is approved by the Washington Utilities and Transportation Commission (WUTC), it will have a direct and immediate impact on Olympia household residents who receive electrical and gas services from PS, especially impacting low-income households, seniors, and working families.
Options:
1. Move to approve a resolution opposing Puget Sound Energy’s proposed 30% electrical rate increase over three years.
2. Move to approve a resolution, with modifications, opposing Puget Sound Energy’s proposed 30% electrical rate increase over three years.
3. Do not approve the resolution.
Attachments:
Resolution