Electrification programs reconsidered and approved
LACEY, Wash. – On Monday, March 17, state regulators denied a request by Puget Sound Energy that would have raised rates for electric and natural gas customers by $109 million in 2025 and $106 million in 2026. These increases were in addition to a rate increase the Utilities and Transportation Commission approved in January 2025.
PSE requested that the commission reconsider its January decision, asking for a review of how the company recovers the costs and expenses related to the construction of energy projects and to recover certain forecasted operations and maintenance costs. The company argued the increases were necessary to support better financial performance, maintain credit ratings, and improve cash flow. The commission denied the company’s requests, finding the company had not met the standard for reconsideration, and that an additional rate increase would be unjust and unreasonable to customers.
As part of the order, the commission approved PSE's Targeted Electrification Pilot Phase II (TEPII), a voluntary electrification pilot. A group of environmental advocates petitioned for reconsideration of the commission’s rejection of TEP in January, asserting the pilot will advance electrification efforts and lay the groundwork to meet Clean Energy Transformation Act (CETA) goals. TEPII was approved for $22.3 million - $10.4 million in 2025 and $11.9 million in 2026. Among other benefits, TEPII provides no-cost heat pumps to low-income households, rebates on heat pumps to some qualifying households, and grants or incentives to customers on a voluntary basis to move from natural gas to electric in areas where gas infrastructure is limited.
The commission also reviewed requests for reconsideration and clarification from other parties to the proceeding, granting several requests to clarify language in the January order.
Bellevue-based Puget Sound Energy provides electric service to more than 1.2 million customers across eight Washington counties: Island, King, Kitsap, Kittitas, Pierce, Skagit, Thurston, and Whatcom. PSE also supplies natural gas service to over 900,000 customers in six Washington counties: King, Kittitas, Lewis, Pierce, Snohomish, and Thurston.
The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
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Editor’s note: You can find the final order and all other documents related to this case on our website.
