Puget Sound Energy (PSE) has proposed a significant increase to its electric rates, seeking a nearly 30% rise over the next three years. This request, filed with the Washington Utilities and Transportation Commission (UTC) on February 27, outlines a plan to raise residential electric rates by 29.32% from 2027 to 2029. The proposed increases are designed to cover both electric and natural gas services, reflecting ongoing challenges related to infrastructure and adherence to state clean energy legislation.
According to the proposal, residential electric rates will increase as follows:
- 2027: 16.75%
- 2028: 3.76%
- 2029: 8.81%
Natural gas rates will also see a rise of 19.83% over the same period, broken down as:
- 2027: 13.32%
- 2028: 3.04%
- 2029: 3.47%
For a typical residential customer using 800 kWh of electricity per month, Which means an additional cost of approximately $28 in 2027, $7 in 2028, and nearly $16 in 2029, culminating in an overall increase of about $51 by 2029. Similarly, a natural gas customer using 64 therms per month would see their bill rise by about $14 in 2027, $4 in 2028, and nearly $5 in 2029, totaling an increase of roughly $23.
Background on Rate Increases
This proposed increase marks the continuation of a trend in which PSE has raised its rates for three consecutive years. In 2025, electric rates increased by 11.5% and natural gas by 10.6%. In 2026, those rates rose again by approximately 12% for electric and 7% for gas. Cumulatively, residential customers have already faced a 23.5% increase in electric rates and 17.6% in gas since 2025.
Mary Kipp, President and CEO of PSE, acknowledged the impact of these increases, stating, “Any increase in monthly bills is difficult for the families and businesses we serve. We take that seriously. At the same time, our customers count on us for safe, reliable energy, and many expect that energy to grow cleaner in line with Washington’s climate laws.”
Factors Driving the Increases
PSE has attributed the proposed rate hikes to several factors, notably the demand for substantial investments in infrastructure and compliance with Washington’s clean energy legislation. The utility plans to invest $3.2 billion in its gas and electric systems, with 70% of that funding directed toward electric resources, which are increasingly under strain.
These investments are aimed at enhancing system safety and reliability, meeting rising customer demand, and reinforcing PSE’s infrastructure against severe weather and wildfire risks. Kipp stressed that these projects are essential for reducing outages and ensuring high-quality energy service for customers.
Washington law mandates that by 2030, 80% of electricity must come from renewable or non-emitting resources, a directive that is pushing PSE to transition towards cleaner energy sources. The Clean Energy Transformation Act, passed in 2019, further requires that all energy be renewable by 2045. PSE is currently focused on developing 11 wind, solar, and battery projects across Washington and Montana to meet these requirements.
Review Process and Community Impact
The UTC will undertake a thorough review of PSE’s proposed rate plan, a process that may take up to 11 months. Tiffany Johnson, a spokesperson for the UTC, indicated that the review will include public hearings and opportunities for customer feedback. The commission is tasked with ensuring that utility services remain safe, reliable, available, equitable, and fairly priced.
As part of the review, the UTC will assess the implications of the rate hikes on local communities, particularly in light of the already significant increases seen in prior years. Customers have the opportunity to voice their opinions regarding these proposed hikes through public comment forms available on the UTC’s website.
Potential Relief for Customers
PSE has indicated that it offers various programs to assist customers who may be struggling with rising energy costs. Those who spend more than 6% of their income on energy bills may qualify for income-qualified programs, which provide bill discounts and credits. PSE is expanding customer incentives aimed at reducing energy consumption during peak hours, which can help mitigate costs.
The utility plans to make its time-of-use pilot program permanent, allowing customers to receive lower rates for shifting their energy use to off-peak times. A new “Peak Time Savings” program will also provide savings opportunities during periods of high demand.
As this rate proposal moves through the UTC review process, it will be critical for consumers to stay informed and engaged. The upcoming months will include hearings and public feedback opportunities, allowing community members to participate in discussions about their energy costs and the future of PSE’s rate structures.
For those interested in sharing their thoughts on the proposed rate increases, public comment forms can be found on the UTC’s website. It remains to be seen how this proposal will unfold and what adjustments, if any, may be made by PSE in response to community feedback.
