State regulators approved a settlement agreement with Puget Sound Energy (PSE) to reduce electric rates due to reduced power-supply costs on Nov. 3.
The Utilities and Transportation Commission (UTC) approved a power-cost rate reduction of $14.9 million, approximately 0.7 percent, for PSE electric customers.
The average residential customer using 1,000 kilowatt-hours would see an electric bill decrease of 0.23 percent, or $0.21 a month, for an average bill of $92.74. This amount is subject to adjustment after the company files updated power costs for electric generation later in November.
New rates go into effect on Dec. 1, 2014.
In May, PSE asked the commission for a $9.5 million rate decrease, about 0.46 percent, to pass through reductions in projected power costs, the cost of generating electricity at the point of connection to the electric grid.
In September, the company and commission staff filed the multi-party settlement agreement along with the Public Counsel section of the state Attorney General’s Office, and the Industrial Customers of Northwest Utilities.
The company filed its original request under a provision called a Power Cost Only Rate Case (PCORC), which allows PSE to periodically adjust electricity rates based solely on changes in power-supply and fuel costs necessary to meet customer demand. A PCORC does not consider the company’s other costs, such as administration and general expenses, salaries, equipment and taxes, which are addressed in more comprehensive general rate cases.
Bellevue-based Puget Sound Energy provides electricity service to more than 1.1 million electric customers living in eight Washington counties: King, Pierce, Island, Kitsap, Kittitas, Skagit, Whatcom, and Thurston.
The UTC is the state agency in charge of regulating private, investor-owned electric 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.
